Why PepsiCo, Inc.(NYSE: PEP) is trading subdued

Cheryl Sanders
April 27, 2017

The company earned $12.05 billion during the quarter, compared to analyst estimates of $11.98 billion. During the same quarter in the previous year, the business posted $0.89 EPS. Coke's beverage volumes came in flat for the first quarter, while soda volumes fell 1%. PepsiCo updated its FY17 guidance to $5.09 EPS.

Shares of Pepsico (NYSE:PEP) opened at 108.15 on Wednesday. Important factors to focus when evaluating a stock's present and future value are the 52 week price high and low levels. The company's 50-day moving average is $111.97 and its 200-day moving average is $106.82. The company has market cap of $164.56 billion.

The firm also recently declared a quarterly dividend, which was paid on Friday, March 31st. Moreover, PEP has an impressive track record in the earnings season. This represents a $3.01 dividend on an annualized basis and a yield of 2.66%. On Wednesday, March 1 the insider Sankaran Vivek sold $220,444. PepsiCo's dividend payout ratio is presently 66.01%. Sure, the percentage is discouraging but better times are ahead as looking out over a next 5-year period, analysts expect the company to see its earnings go up by 9.92%, annually. Societe Generale upgraded the stock to "Buy" rating in Monday, December 12 report.

Receive Pepsico, Inc. News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pepsico, Inc. with MarketBeat.com's FREE daily email newsletter. Finally, Credit Suisse Group AG reiterated a "buy" rating and set a $115.00 target price on shares of PepsiCo in a research report on Thursday, February 16th. Jefferies Group LLC raised their price objective on shares of PepsiCo from $120.00 to $127.00 and gave the company a "buy" rating in a research report on Wednesday, April 19th. JPMorgan Chase & Co. started coverage on shares of PepsiCo in a research report on Tuesday, March 21st. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and thirteen have issued a buy rating to the company. UBS maintained it with "Buy" rating and $108 target in Wednesday, October 7 report. The stock traded with the volume of 3.72 Million shares in the last trading session. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Vivek Sankaran sold 2,000 shares of PepsiCo stock in a transaction on Friday, March 3rd. The stock was sold at an average price of $109.50, for a total transaction of $466,251.00. Smith Moore And Company owns 12,452 shares. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 44,343 shares of company stock valued at $4,850,480.

Several research analysts have commented on PEP shares. Trust Co. of Virginia VA boosted its stake in shares of PepsiCo by 2.4% in the third quarter. Fincl Engines Advsr owns 1,306 shares for 0% of their portfolio. Gluskin Sheff & Assoc Inc. raised its position in PepsiCo by 68.8% in the third quarter. (PEP) is a good investment, however if the market is weaker then it could suggest that the shares are undervalued. Franklin Resources Inc. now owns 15,671,152 shares of the company's stock valued at $1,639,677,000 after buying an additional 340,666 shares during the period. Highland Private Wealth Management increased its position in shares of Pepsico by 0.5% in the fourth quarter. Univest Corp of Pennsylvania now owns 2,350 shares of the company's stock valued at $263,000 after buying an additional 17 shares during the period. If you are viewing this article on another website, it was copied illegally and reposted in violation of USA & global trademark and copyright legislation. Pepsico Inc now has $164.33B valuation.

PepsiCo's Frito Lay volumes fell 1.5% and Quaker Foods volume fell 1%. Sales from PepsiCo's Frito-Lay North America and from its Latin American operations increased 2.4% and 3.4% respectively, offsetting lower sales at the group's Quaker Foods North America and Asia, Middle East and North Africa units.

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