How Should Investors View PepsiCo Inc. (PEP) Insider Trading?

As of Friday close, PepsiCo Inc.’s (NASDAQ:PEP) stock was up $3.32, moving up 1.95 percent to $173.72. The average number of shares traded per day over the past five days has been 5,954,120 shares. 2 times new highs have been achieved over the past 5 days, with a $3.31 gain in that time frame. In the last twenty days, the average volume was 5,689,350, while in the previous 50 days, it was 5,332,956.

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Since last month, PEP stock rose 0.42%. Shares of the company fell to $165.27 on 05/02/22, the lowest level in the past month. A 52-week high of $177.62 was reached on 04/28/22 after having rallying from a 52-week low of $143.58. Since the beginning of this year, PEP’s stock price has risen by 0.01% or $0.01, and marked a new high 11 times. However, the stock has declined by -2.20% since its 52-week high.

PepsiCo Inc. (PEP) last reported insider trading activity 4 days ago on May 10. Krishnan Ramkumar, the CEO Intl Beverages & CCO of the company, disposed of 4,790 shares for $171.76 on May 10. It resulted in a $822,730 divestment by the insider. Johnston Hugh F sold 37,266 shares at an average price of $160.30 on Oct 21. The insider now owns 148,357 shares following the transaction. On Aug 06, EVP, Gen Counsel & Corp Sec Flavell David sold 2,000 shares at $154.39 apiece. The transaction was valued at $308,785.

Valuation Metrics

Right now, PepsiCo Inc. (PEP) has a P/E ratio of about 23.32. The stock’s beta is 0.59. Besides these, the trailing price-to-sales (P/S) ratio of 2.97, the price-to-book (PB) ratio of 13.20, and the price-to-cash flow ratio of 150.67 may also be considered.

The latest dividend of $1.15 per share was paid out, which is 6.98% more than last year’s $1.0750. On Tuesday May 3 2022, a $0.0750 dividend increase was announced.

Financial Health

In the three months ended September 29, PepsiCo Inc.’s quick ratio stood at 0.70, while its current ratio was 0.90, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 1.90, and the total debt-to-equity ratio was 2.20. On the profitability front, the trailing twelve-month gross margin is 53.40% percent. In the year ended September 29, operating margins totaled 17.50%. Based on annual data, PEP earned $42.4 billion in gross profit and brought in $79.47 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 16.30%. Return on equity (ROE) for the past 12 months was 62.20%.

In PepsiCo Inc.’s quarter-end financial report for September 29, it reported total debt of $34.59 billion against cash and short-term investments of $343.0 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. PEP’s revenue rose 8.52% to $25.25 billion during the quarter, while net income inched up to $16.2 billion. While analysts expected PepsiCo Inc. to report $1.73 quarterly earnings, the actual figure was $1.79 per share, beating the consensus estimate by 3.50%. During the quarter, the company generated $5.92 billion in EBITDA. The liabilities of PepsiCo Inc. were 74.64 billion at the end of its most recent quarter ended September 29, and its total debt was $41.26 billion. The value of shareholders’ equity is $1.38 billion.

Technical Picture

This quick technical analysis looks at PepsiCo Inc.’s (PEP) price momentum. With a historical volatility rate of 22.90%, the RSI 9-day stood at 57.26% on 13 May.

With respect to its five-day moving average, the current PepsiCo Inc. price is up by +1.94% percent or $3.31. At present, PEP shares trade +1.06% above its 20-day simple moving average and +2.54% percent above its 100-day simple moving average. However, the stock is currently trading approximately +6.40% above its SMA50 and +10.78% above its SMA200.

Stochastic coefficient K was 51.20% and Stochastic coefficient D was 48.36%, while ATR was 3.85. Given the Stochastic reading of 68.42% for the 14-day period, the RSI (14) reading has been calculated as 55.59%. As of today, the MACD Oscillator reading stands at 0.41, while the 14-day reading stands at -0.25.

Analyst Ratings

PepsiCo Inc. downgraded its rating on PepsiCo Inc. (NASDAQ: PEP) to a Hold in a note to investors on February 15, 2022. The analysts firm previously had a Buy rating on the stock.PepsiCo Inc. (PEP) has been rated Overweight by analysts. According to 0 brokerage firms, PEP is a sell, and 10 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 3 analysts rate PepsiCo Inc. stock as buy, with 9 recommending it as overweight.

With a median target price of $187.00, the current consensus forecast for the stock is $160.00 – $200.00. Based on these forecasts, analysts predict PepsiCo Inc. (PEP) will achieve an average price target of $184.21.


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