PepsiCo Inc. (NASDAQ: PEP) stock fell -0.83% on Friday to $175.49 against a previous-day closing price of $176.95. With 3.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.24 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $177.15 whereas the lowest price it dropped to was $175.24. The 52-week range on PEP shows that it touched its highest point at $177.69 and its lowest point at $149.48 during that stretch. It currently has a 1-year price target of $181.53. With its current market cap of 237.53 billion, PEP has annualized dividend of $4.60 while the current yield stands at 2.62%. Beta for the stock currently stands at 0.57.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PEP was up-trending over the past week, with a rise of 2.13%, but this was up by 3.60% over a month. Three-month performance surged to 4.61% while six-month performance rose 1.14%. The stock gained 12.26% in the past year, while it has gained 1.02% so far this year. A look at the trailing 12-month EPS for PEP yields 6.78 with Next year EPS estimates of 7.19. For the next quarter, that number is 1.83. This implies an EPS growth rate of 9.90% for this year and 7.65% for next year. EPS is expected to grow by 7.95% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.20%.
Float and Shares Shorts:
At present, 1.38 billion PEP shares are outstanding with a float of 1.38 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 10.84 million, which was 0.79% higher than short shares on Jun 14, 2022. In addition to Mr. Ramon Luis Laguarta as the firm’s Chairman & CEO, Mr. Hugh F. Johnston serves as its Vice Chairman, Exec. VP & CFO.
Through their ownership of 73.93% of PEP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.27% of PEP, in contrast to 34.47% held by mutual funds. Shares owned by individuals account for 0.57%. As the largest shareholder in PEP with 8.60% of the stake, The Vanguard Group, Inc. holds 118,894,743 shares worth 118,894,743. A second-largest stockholder of PEP, BlackRock Fund Advisors, holds 66,643,568 shares, controlling over 4.82% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in PEP, holding 59,395,137 shares or 4.30% stake. With a 2.95% stake in PEP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 40,757,436 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of PEP stock, is the second-largest Mutual Fund holder. It holds 30,604,179 shares valued at 5.1 billion. Invesco QQQ Trust holds 1.45% of the stake in PEP, owning 20,026,990 shares worth 3.34 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PEP since 20 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PEP analysts setting a high price target of $200.00 and a low target of $160.00, the average target price over the next 12 months is $181.94. Based on these targets, PEP could surge 13.97% to reach the target high and fall by -8.83% to reach the target low. Reaching the average price target will result in a growth of 3.68% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PEP will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $6.78 being high and $6.63 being low. For PEP, this leads to a yearly average estimate of $6.66. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PepsiCo Inc. surprised analysts by $0.12 when it reported $1.86 EPS against a consensus estimate of $1.74. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $1.87 and the low estimate is $1.77. The average estimate for the next quarter is thus $1.83.
Dividends & Yield:
In terms of dividends, PEP has a current ratio of $4.6, which is $4.6 over the trailing 12-months, while a dividend of $3.78 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and PEP currently yields $2.49. In the past year, PEP’s dividend yield has been $2.49, but when looking at the stock over the past five years, its yield has been $2.83. Accordingly, PEP has a current buyback yield of $0.29. This was $0.29 for the TTM, and it was $1.08 for the past five years.
Summary of Insider Activity:
Insiders traded PEP stock several times over the past three months with 5 Buys and 7 Sells. In these transactions, 8,252 shares were bought while 31,018 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 37 over the past year. The total number of shares bought during that period was 210,664 while 181,814 shares were sold.