BlackRock Fund Advisors recently announced the acquisition of new stake in PepsiCo Inc (NASDAQ:PEP). The institutional investor has increased its shareholding in the Consumer Defensive company by 3.33% to 73.44 million shares with purchase of 2.37 million shares. This fresh investment now brings its stake to 5.34% valued currently at $12.36 billion. In addition, Geode Capital Management LLC raised its holdings by 0.58 million to 27.65 million shares. And Charles Schwab Investment Managem has lifted its position by 5.26% or 0.92 million shares – to 18.42 million shares.
With over 5.59 million PepsiCo Inc (PEP) shares trading Tuesday and a closing price of $172.91 on the day, the dollar volume was approximately $966.64 million. The shares have shown a negative half year performance of -6.84% and its price on 01/02/24 gained nearly 1.81%. Currently, there are 1.38B common shares owned by the public and among those 1.37B shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for PEP have a consensus price objective of $186.95. The analysts have set the share’s price value over the next 12 months at a high of $220.00 and a low of $151.00. The average price target is 7.51% above its recent price level and a downside to the estimated low will see the stock lose -14.51% over that period. But an upside of 21.4% will see the stock hit the forecast high price target while median target price for the stock is $185.00.
Insiders at the company have transacted a total of 88 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 66 of these insider trades were purchases, accounting for 454,107 shares. Insider sales of the common stock occurred on 22 occasions, with total insider shares sold totaling 357,363 shares.
The top 3 mutual fund holders in PepsiCo Inc are Vanguard Total Stock Market ETF, Vanguard 500 Index Fund, and Invesco QQQ Trust. Vanguard Total Stock Market ETF owns 43.14 million shares of the company’s stock, all valued at over $7.26 billion. The company bought an additional 61494.0 shares recently to bring their total holdings to about 3.14% of the shares outstanding. Vanguard 500 Index Fund bought 0.16 million shares to see its total holdings expand to 33.24 million shares valued at over $5.59 billion and representing 2.42% of the shares outstanding. Invesco QQQ Trust sold 81206.0 shares to bring its total holdings to over 23.95 million shares at a value of $4.03 billion. Invesco QQQ Trust now owns shares totaling to 1.74% of the shares outstanding.
Shares of PepsiCo Inc (NASDAQ: PEP) opened at $169.52, down -$0.32 from a prior closing price of $169.84. However, the script later moved the day high at 172.99, up 1.81%. The company’s stock has a 5-day price change of 3.12% and 2.21% over the past three months. PEP shares are trading 1.81% year to date (YTD), with the 12-month market performance down to -4.98% lower. It has a 12-month low price of $155.83 and touched a high of $196.88 over the same period. PEP has an average intraday trading volume of 5.66 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.78%, 3.76%, and -2.87% respectively.
Institutional ownership of PepsiCo Inc (NASDAQ: PEP) shares accounts for 74.66% of the company’s 1.38B shares outstanding. Mutual fund holders own 35.25%, while other institutional holders and individual stakeholders account for 39.47% and 0.58% respectively.
It has a market capitalization of $237.73B and a beta (3y monthly) value of 0.54. The stock’s trailing 12-month PE ratio is 28.86, while the earnings-per-share (ttm) stands at $5.99. The company has a PEG of 3.34 and a Quick Ratio of 0.71 with the debt-to-equity ratio at 2.38. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.05% over the week and 1.18% over the month.
Analysts forecast that PepsiCo Inc (PEP) will achieve an EPS of $1.72 for the current quarter, $1.63 for the next quarter and $8.15 for 2024. The lowest estimate earnings-per-share for the quarter is $1.7 while analysts give the company a high EPS estimate of $1.75. Comparatively, EPS for the current quarter was $1.67 a year ago. Earnings per share for the fiscal year are expected to increase by 11.25%, and 7.99% over the next financial year. EPS should shrink at an annualized rate of 8.64% over the next five years, compared to 13.70% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate PepsiCo Inc (PEP) as a “Moderate Buy” at a consensus score of 2.33. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 11 of the 21 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the PEP, a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on December 19, 2023, with the firm’s price target at $185-$176.
