PepsiCo Inc. (PEP): Here Are Some Research Recommendations

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PepsiCo Inc. (NASDAQ:PEP) finished Wednesday with a subtraction of -$0.48 to close at $168.44, a downside of -0.28 percent. An average of 6,040,160 shares of common stock have been traded in the last five days. There was a fall of -$0.24 in the past week, and it reached a new high 36 times over the past 12 months. The last 20 days have seen an average of 5,160,340 shares traded, while the 50-day average volume stands at 4,225,094.

PEP stock has decreased by -5.61% in the last month. The company shares reached their 1-month lowest point of $165.25 on 09/16/22. With the stock rallying to its 52-week high on 08/17/22, shares of the company touched a low of $149.48 and a high of $181.07 in 52 weeks. It has reached a new high 15 times so far this year and lost -3.03% or -$5.27 in price. In spite of this, the price is down -6.98% from the 52-week high.


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Insider Transactions

56 days have passed since PepsiCo Inc. (PEP) last reported insider trading activity. Krishnan Ramkumar, who is CEO Intl Beverages & CCO, most recently acquired $3,433 shares at $174.83 per share on Jul 28. In this transaction, the insider spent $600,193. CEO, PFNA, Williams Steven C, disposed of 1,753 shares at a price of $171.18 on Jul 15. The insider now owns more than $300,076 worth of shares. Prior to that, CEO, PBNA Tanner Kirk went on to Sale 13,679 shares at $174.15 each on May 17. An amount of $2,382,260 was transacted.

Valuation Metrics

PepsiCo Inc. (PEP) has a trailing price-to-earnings (P/E) ratio of 24.84. The stock’s beta is 0.57. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.82, the price-to-book (PB) ratio at 12.55, and the price-to-cash flow ratio at 627.57.

The company has a payout ratio of 65.50%. The company’s most recent quarterly dividend payment was $1.15 a share, without any change from last year. Its latest increase dividend $0.0750 reported on Tuesday May 3 2022.

Financial Health

The quick ratio of PepsiCo Inc. for the three months ended June 29 was 0.60, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.79 and a total debt to equity ratio of 2.12 for the quarter ending June 29. Its gross profit as reported stood at $42.4 billion compared to revenue of $79.47 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, PepsiCo Inc.’s return on assets was 9.90%.

Earnings Surprise

For the three-month period that ended June 29, PepsiCo Inc. had $287.0 million in cash and short-term investments compared to $33.25 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.43 billion in the quarter, while revenues of $4.26 billion were shrunk -65.01%. The analyst consensus anticipated PepsiCo Inc.’s latest quarter earnings to come in at $1.74 per share, but it turned out to be $1.86, a 6.90% surprise. For the quarter, EBITDA amounted to $2.84 billion. Shareholders own equity worth $1.38 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at PepsiCo Inc. (PEP) price momentum. RSI 9-day as of the close on 21 September was 40.66%, suggesting the stock is Neutral, with historical volatility in this time frame at 22.97%.

As of today, PEP’s price is $167.79 -0.14% or -$0.24 from its 5-day moving average. PEP is currently trading -5.57% lower than its 20-day SMA and -5.10% lower than its 100-day SMA. However, the stock’s current price level is -0.63% below the SMA50 and +2.26% above the SMA200.

The stochastic %K and %D were 35.46% and 28.19%, respectively, and the average true range (ATR) was 2.93. With the 14-day stochastic at 32.82% and the average true range at 2.87, the RSI (14) stands at 41.49%. The stock has reached -0.43 on the 9-day MACD Oscillator while the 14-day reading was at -1.38.

Analyst Ratings

DZ Bank downgraded PepsiCo Inc. (NASDAQ: PEP) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for PepsiCo Inc. (PEP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PEP, while 10 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 6 others rate it as a “buy”.

What is PEP’s price target for the next 12 months?

Analysts predict a range of price targets between $165.00 and $200.00, with a median target of $183.00. Taking a look at these predictions, the average price target given by analysts for PepsiCo Inc. (PEP) stock is $182.47.

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