October 12, 2023 – Beverage giant PepsiCo, Inc. (NASDAQ:PEP) has drawn attention in the trading market with unusually large options trading activity on Wednesday. Traders acquired a staggering 88,034 put options on the stock, representing a significant increase of 337% compared to the typical daily volume of 20,139 put options.
The surge in options trading activity has placed PepsiCo in focus for various research reports and evaluations. Citigroup recently lowered their price target on PepsiCo shares from $200.00 to $180.00 while maintaining a “neutral” rating on the stock. Similarly, Royal Bank of Canada reaffirmed their “sector perform” rating and set a price target of $180.00 for PepsiCo shares.
Deutsche Bank Aktiengesellschaft took an opposing stance by raising their price objective from $193.00 to $195.00 in a recent research report issued on Friday, July 14th. However, Argus reduced their target price from $212.00 to $186.00 in another report on Wednesday. Evercore ISI also lowered its price target from $195.00 to $185.00 in a research report published on Tuesday, October 3rd.
Analysts have been divided in their opinions regarding PepsiCo’s stock performance, with one analyst issuing a sell rating, eight recommending hold ratings, and four giving buy ratings to the company’s shares overall. According to Bloomberg data, PepsiCo currently holds an average rating of “Hold” and has been assigned a consensus target price of $182.69.
In addition to its recent trading activity and research assessments, PepsiCo announced its quarterly dividend payment on Friday, September 29th. Investors who held the company’s stock by Friday, September 1st were eligible for a dividend amount of $1.265 per share. With an annualized basis of allocation at $5.06, the dividend yield was recorded at 3.11%. The ex-dividend date for this payment was Thursday, August 31st. Currently, PepsiCo maintains a dividend payout ratio (DPR) of 88.62%.
The market activity surrounding PepsiCo has attracted attention from various institutional investors who have either increased or decreased their stakes in the company. Among these investors, Avion Wealth witnessed a significant 70.6% increase in their holdings of PepsiCo during the second quarter, now owning 145 shares worth $25,000 after purchasing an additional 60 shares.
Spotlight Asset Group Inc. also acquired a new stake in PepsiCo during the same period, valued at $27,000. Similarly, DHJJ Financial Advisors Ltd. purchased PepsiCo shares during the third quarter worth approximately $25,000. Additionally, Freedom Wealth Alliance LLC and Pacifica Partners Inc., both obtained new positions in PepsiCo worth around $29,000 and $27,000 respectively.
Overall analyses indicate that large institutional investors currently own approximately 71.40% of PepsiCo’s stock.
PepsiCo’s recent surge in options trading activity indicates heightened interest and uncertainty surrounding its stock performance. The diverse range of research reports from notable financial institutions demonstrates varying viewpoints on the company’s potential growth prospects. It remains to be seen how these factors will impact the future trajectory of PepsiCo in the market.
PepsiCo Dividend Payments, Stock Performance, and Financial Analysis
PepsiCo, one of the world’s leading food and beverage companies, recently announced its quarterly dividend payment to investors. The dividend, which was paid on Friday, September 29th, amounted to $1.265 per share. With an annualized basis of $5.06, this represents a dividend yield of 3.11%. Shareholders who were recorded as of Friday, September 1st were eligible for this payment. The ex-dividend date for this dividend was Thursday, August 31st. Currently, PepsiCo’s dividend payout ratio stands at 88.62%.
On Wednesday, October 12th, NASDAQ PEP witnessed a decrease in stock value by $1.78, reaching $162.62 per share. The company’s trading volume on that day was 7,351,090 shares, slightly above the average volume of 4,777,596 shares. Over the past year, PepsiCo has seen a price range stretching from its low of $155.83 to its high at $196.88 per share.
Analyzing the financial health of PepsiCo reveals a current ratio of 0.84 and quick ratio of 0.64—a measure of the company’s ability to meet short-term obligations with liquid assets—indicating a relatively modest position in terms of liquidity management. Furthermore, the firm carries a debt-to-equity ratio of 2.02.
With a market capitalization value of $223.86 billion and a price-to-earnings (PE) ratio standing at 28.51—a gauge used to determine if a stock is over or undervalued—the company is considered stable within its market sector when compared to competitors.
Moving averages serve as important technical indicators for determining trends in stock prices over specific periods; PepsiCo demonstrates a 50-day moving average price of $176.76 and a 200-day moving average price of $183.18.
In its most recent earnings report released on Tuesday, October 10th, PepsiCo exceeded analysts’ expectations. The company reported earnings per share (EPS) of $2.25 for the quarter, surpassing estimates by $0.10. This strong performance reflects a return on equity of 56.05% and a net margin of 8.76%. The business generated $23.45 billion in revenue during the quarter, slightly higher than analysts’ expectations of $23.41 billion. Compared to the same quarter last year, PepsiCo experienced a 6.7% increase in quarterly revenue.
Based on sell-side analysts’ projections, it is anticipated that PepsiCo will achieve an EPS of 7.48 for the current year.
Overall, PepsiCo’s financial performance presents a mixed picture with both positive and negative indicators. While dividends remain attractive at 3.11%, stock prices have seen fluctuation over the past year and have recently experienced a slight decline. The company’s financial ratios indicate some liquidity concerns but are within an acceptable range considering its market position and industry standards.
Investors should carefully evaluate these factors before making any investment decisions related to PepsiCo stock but must also consider potential long-term growth prospects for this renowned food and beverage giant.