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Tag: PEP

  • Are Cheerios and Quaker Oats safe to eat? Experts weigh in on new pesticide concerns. 

    Are Cheerios and Quaker Oats safe to eat? Experts weigh in on new pesticide concerns. 

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    Should you pass on that morning bowl of cereal or oatmeal?

    That’s what some people may be asking in light of a study released this week by the Environmental Working Group, a Washington, D.C.-based nonprofit focused on agricultural and chemical-safety laws in the U.S. The study looked at the prevalence of a pesticide called chlormequat in oat-based food products, including cereals like Cheerios and Quaker Oats. 

    The EWG said it found detectable levels of the chemical in 92% of nonorganic oat-based foods purchased in May 2023.

    “Studies in laboratory animals show that chlormequat can cause harm to the normal growth and development of the fetus and damage the reproductive system,” Olga Naidenko, vice president at the EWG, told MarketWatch. Those risks, the EWG report noted, can include reduced fertility. 

    It has not been proven that the substance affects humans in the same way the studies cited by the EWG found it does lab animals, and there are other studies that have found chlormequat had no effect on reproduction in pigs or mice, or any impact on fertilization rates in mice.

    The EWG is still advocating that concerned consumers buy organic oat products as an alternative, however. 

    “Certified organic oats are, by law, grown without synthetic pesticides,” Naidenko said. 

    Representatives for General Mills
    GIS,
    +1.28%    ,
    the company that makes Cheerios, and PepsiCo
    PEP,
    -0.92%    ,
    which owns Quaker Oats, didn’t immediately respond to a request for comment. 

    “‘Any family raising kids or thinking about starting a family should do whatever they can do to avoid chlormequat. It’s not a safe product.’”


    — Charles Benbrook, a scientific consultant who focuses on pesticides

    The EWG’s recommendation to go organic was echoed by experts that MarketWatch contacted. 

    Charles Benbrook, a scientific consultant based in Washington state who focuses on pesticides, said he’s an oatmeal eater who chooses organic oatmeal “when I can get it.”

    Regarding chlormequat, Benbrook said, “It’s not a safe product.”

    “Any family raising kids or thinking about starting a family should do whatever they can do to avoid chlormequat,” he said.

    Melissa Furlong, an assistant professor of environmental health sciences at the University of Arizona, said it’s important to note that chlormequat is not the only pesticide that is found in oat-based cereals. There’s still much we need to learn about the health effects the substance might have on humans, she added.

    “That’s not to say it isn’t the worst [pesticide]. We don’t really know,” Furlong said. 

    Chlormequat has not been approved for use on food crops grown in the U.S., according to the EWG, but it can be found in oats and oat products from other countries. Under the Trump administration, the Environmental Protection Agency started allowing imports of such products into the U.S., the EWG noted, which is why chlormequat can be found in some cereals sold in this country.

    The EPA is considering approving chlormequat for use on crops grown in the U.S., according to the agency’s website. In a call for public comment on its proposed decision, the agency said, “Based on EPA’s human health risk assessment, there are no dietary, residential, or aggregate (i.e., combined dietary and residential exposures) risks of concern.”

    The EPA didn’t respond immediately to a request for comment.

    For her part, Furlong said that while she usually buys organic oat products, she isn’t rigid about it — and she might still buy the occasional box of Cheerios.

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  • PepsiCo’s stock climbs after earnings beat consensus and company raises guidance

    PepsiCo’s stock climbs after earnings beat consensus and company raises guidance

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    Shares of PepsiCo Inc.
    PEP,
    +0.67%
    rose 2.5% in premarket trading Tuesday, after the beverage and snack giant reported third-quarter earnings that topped consensus and raised its full-year guidance.

    Net income rose to $3.092 billion, or $2.24 a share, from $2.702 billion, or $1.95 a share, in the same period a year ago.

    Excluding nonrecurring items, core earnings per share of $2.25 were ahead of the FactSet consensus of $2.15.

    Revenue grew to $23.453 billion from $21.971 billion, also ahead of the FactSet consensus of $23.413 billion.

    “We are pleased with our performance as our businesses and associates displayed tremendous agility and resilience across geographies and categories in an evolving and dynamic environment,” Chief Executive Ramon Laguarta said in a statement.

    Revenue at Frito-Lay North America rose 7%, while it was up 5% at Quaker Foods North America. PepsiCo Beverages North America rose 8%, while Latin America was up 21% and Europe up 2%.

    Revenue for Africa, Middle East and South Asia fell 6%, while Asia Pacific, Australia and New Zealand and China Region’s revenue was up 4%.

    For 2023, the company revised its core EPS guidance to $7.54 from $7.47 previously.

    “For fiscal year 2024, we expect to deliver results towards the upper end of our long-term target ranges for both organic revenue and core constant currency EPS growth,” said the statement.

    The company’s long-term target ranges for both organic revenue growth — 4% to 6% growth — and core constant currency EPS growth– high-single-digit percentage increase– remain unchanged.

    The stock has fallen 11% in the year to date, while the S&P 500
    SPX
    has gained 13%.

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  • U.S. stocks end higher after blockbuster September jobs report as S&P 500 snaps 4-week losing streak

    U.S. stocks end higher after blockbuster September jobs report as S&P 500 snaps 4-week losing streak

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    U.S. stocks closed higher Friday, with the S&P 500 eking out a modest weekly gain, as investors assessed a monthly jobs report that showed both a blockbuster surge in jobs created along with a slowdown in wage pressures.

    How stock indexes traded

    • The Dow Jones Industrial Average
      DJIA
      rose 288.01 points, or 0.9%, to close at 33,407.58.

    • The S&P 500
      SPX
      gained 50.31 points, or 1.2%, to finish at 4,308.50.

    • The Nasdaq Composite
      COMP
      climbed 211.51 points, or 1.6%, to end at 13,431.34.

    For the week, the Dow slipped 0.3% while the S&P 500 edged up 0.5% and the Nasdaq gained 1.6%. The Dow fell for a third straight week, while the S&P 500 snapped a four-week losing streak and the Nasdaq saw back-to-back weekly gains, according to Dow Jones Market Data.

    What drove markets

    U.S. stocks climbed Friday, after reversing course from their slide earlier in the session as investors parsed a U.S. employment report that was stronger than forecast.

    “Wages slowed down,” said José Torres, senior economist at Interactive Brokers, in a phone interview Friday. “That was a great development” as the Federal Reserve aims to bring down inflation through monetary tightening.

    Investors have worried that a hot labor market will keep wage growth elevated, adding to inflationary pressures that could see the Fed keep interest rates higher for longer or potentially hike its benchmark rate one more time this year.

    A report Friday from the Bureau of Labor Statistics showed the U.S. economy created 336,000 jobs in September, far surpassing economists’ expectations for 170,000 new jobs. Also, the report said job gains in August and July were revised higher.

    See: Jobs report shows big 336,000 gain in hiring in September. Labor market still hot.

    But other details from the report were slightly more favorable in terms of monetary policy concerns.

    For example, average hourly wages rose a mild 0.2% in September, bringing the 12-month rate of change through September to 4.2%, a slower pace than the prior month’s year-over-year rate of 4.3%.

    “Even though the headline number was 2.5 times what Wall Street had anticipated, the more important detail below the surface was that wage inflation actually cooled,” said Sam Stovall, chief investment strategist at CFRA, during a phone interview with MarketWatch.

    Renaissance Macro Research’s Neil Dutta said in a note that the jobs report was consistent with a soft landing for the economy and the Fed’s objective to lower the inflation rate back to 2%.

    Also see: Why another Fed rate hike this year ‘still a close call’ after jobs report, according to JPMorgan’s David Kelly

    “The strong labor market gives credence to the base case still being a soft landing,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management, in a phone interview Friday. But that soft-landing narrative is “somewhat fragile and data dependent,” he said.

    See: U.S. stocks stage a surprising rally on Friday. But can the party last?

    Investors will be watching for data scheduled to be released next week on September inflation from the consumer-price index and producer-price index.

    Meanwhile, economists from Goldman Sachs Group said in a note Friday that “the continued rebalancing of the labor market” is consistent with their expectation that the Fed is done raising rates this year, despite senior Fed officials projecting another hike in their latest batch of forecasts, released last month.

    Federal-funds-futures traders are expecting the Fed will keep its benchmark rate at the current range of 5.25% to 5.5% at its policy meetings in November and December, according to the CME FedWatch Tool.

    “I’m of the belief that the Fed will not hike again this year,” BMO’s Ma said. “I don’t think it needs to.”

    Meanwhile, the yield on the 10-year Treasury note
    BX:TMUBMUSD10Y
    climbed 6.8 basis points to 4.783%, rising for five straight weeks, according to Dow Jones Market Data.

    Rising Treasury yields, particularly on the long end of the yield curve, have been blamed for a selloff in stocks over the past couple months. But the S&P 500 is now up so far in October, with a small gain of 0.5%, according to FactSet data.

    Companies in focus

    Steve Goldstein contributed to this report.

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  • Pepsi Stock Gets Rocked by Weight-Loss Drug Fears. Earnings Could Make Shares a Buy.

    Pepsi Stock Gets Rocked by Weight-Loss Drug Fears. Earnings Could Make Shares a Buy.

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    By Jacob Sonenshine

    Updated Oct 06, 2023, 2:51 am EDT / Original Oct 06, 2023, 1:15 am EDT

    Consumer-staples stocks have gotten hit hard in recent weeks, and hasn’t escaped the carnage. With the steady-Eddie beverage and snack giant set to report earnings on Oct. 10, its stock could be ready to pop.

    Continue reading this article with a Barron’s subscription.

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  • Want companies to lower their prices? Stop buying stuff from them.

    Want companies to lower their prices? Stop buying stuff from them.

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    The thing that will make companies lower prices is if consumers stop complaining about paying more for the things they need and want, and actually start refusing to buy them.

    As the U.S. corporate earnings-reporting season progresses, with earnings from major retailers Walmart Inc.
    WMT,
    +0.59%    ,
    Target Corp.
    TGT,
    +0.10%
    and Home Depot Inc.
    HD,
    +0.52%
    on tap next week, investors can get a ground-floor view of how consumer demand may have been hurt, or not, by higher prices, and what the companies plan to do, or not do, about it.

    This dynamic of how consumers adjust their spending habits when prices change is referred to by economists as the price elasticity of demand.

    “ For companies to cut prices, ‘you have to have the consumer go on strike, and they’re not there yet.’”


    — Jamie Cox, Harris Financial Group

    Those who trust companies will choose to ratchet down prices on their own, or at least not raise them because the rise in input costs has been slowing, haven’t been listening to what the many companies have told analysts on their post-earnings-report conference calls.

    Read: U.S. inflation eases again, PCE shows. Prices rise at slowest pace in almost two years.

    Kraft Heinz Co.
    KHC,
    +0.47%
    acknowledged after its second-quarter report that its relatively higher prices have hurt demand, but not by enough for the food and condiments company to consider cutting prices.

    Colgate-Palmolive Co.
    CL,
    +0.81%
    said it will continue to raise prices, even as inflation slows and selling volume declines, as the consumer-products company continues to be laser focused on boosting margins and profits.

    And while PepsiCo Inc.
    PEP,
    +0.16%
    was worried that elasticities would increase, given how its lower-income customers were being particularly pressured by inflation, the beverage and snack giant reported strong results as it witnessed “better elasticities” in most of the markets in which it operated.

    “Obviously, there is still carryover pricing, and I don’t think we’ll do anything different than our normal cycles on pricing in the balance of the year,” PepsiCo Chief Financial Officer Hugh Johnston told analysts, according to an AlphaSense transcript.

    Basically, as MarketWatch has reported, so-called greedflation is alive and well.

    Jamie Cox, managing partner for Harris Financial Group, said as long as the job market stays strong, as it is now, corporate greed will continue to pay off.

    “If something is more expensive, and you have a job, you’ll complain about it, but you won’t substitute it for something cheaper,” Cox said. For companies to cut prices, “you have to have the consumer go on strike, and they’re not there yet,” Cox added.

    “ ‘At some point, people are going to say, “All right — enough.” ’ ”


    — Paul Nolte, Murphy & Sylvest Wealth Management

    The reason elasticity is so important in the current environment is that, as long as consumers continue to pay the higher prices companies are charging, inflation will remain stubbornly high, making it, in turn, more likely that the Federal Reserve will continue to raise interest rates or, at the very least, not lower them.

    But the longer interest rates stay high enough to crimp economic growth, the more likely the stock market will reverse lower as recession fears rise.

    “At some point, people are going to say, ‘All right — enough,’ ” said Paul Nolte, senior wealth manager and market strategist at Murphy & Sylvest Wealth Management. “But we just haven’t seen that yet.”

    What is elasticity?

    Economists use the term “price elasticity of demand” to refer to the way in which consumers adjust their spending habits when prices change.

    “Elasticity tries to measure how much more producers will want to produce if prices rise, and how much more consumers will want to buy if prices fall,” explained Bill Adams, chief economist at Comerica.

    Elasticity often depends on the type of product a company sells.

    For example, consumer-discretionary-goods companies that sell products and services that people want will often experience greater price elasticity than consumer-staples companies that sell things that people need, such as groceries and prescription drugs.

    But even for needs, consumers often still have a choice, as less expensive generic, or private-label, alternatives may be available.

    Andre Schulten, chief financial officer of consumer-staples maker Procter & Gamble Co.
    PG,
    +0.58%    ,
    which recently beat earnings expectations as it continued to raise prices, telling analysts that, while there was “some trading into private label,” the overall market share of private-label products was unchanged for the year.

    As Harris Financial’s Cox said, consumers may be complaining about higher prices, but they aren’t yet desperate enough to stop buying.

    The Federal Reserve’s latest Beige Book economic survey stated that business contacts in some districts had observed a “reluctance” to raise prices as consumers appeared to have grown more sensitive to prices, but other districts reported “solid demand” allowed companies to maintain prices and profitability.

    That’s likely why companies and analysts have become less concerned about price elasticity. Based on a FactSet analysis, mentions of the word “elasticity” in press releases and conference calls of S&P 500 companies
    SPX
    increased as inflation and interest rates started surging in early 2022 through the end of the year.

    With inflation trends softening this year, the Fed took a brief pause in raising rates in June, helping fuel further stock-market gains, before raising rates again in July.

    Mentions of the word elasticity in earnings press releases and conference-call transcripts of S&P 500 companies.


    FactSet

    As the chart shows, “elasticity” popped up in more than 55% of earnings releases and conference calls in mid-2022, but with the second-quarter 2023 earnings-reporting season more than half over, mentions had dropped to about 20%.

    Perhaps that will pick up, as retailers, especially those catering to lower-income customers — recall the PepsiCo comment — assess the demand impact of continued price increases.

    Meanwhile, the branded-foods company Conagra Brands Inc.
    CAG,
    +0.71%    ,
    whose wide-ranging food brands including Birds Eye, Duncan Hines, Hunt’s, Orville Redenbacher’s and Slim Jim, were starting to see the emergence of a different dynamic.

    Chief Executive Sean Connolly said consumers were shifting behavior in some categories as prices remained high. Rather than trade down to lower-priced alternatives, he noticed some consumers buying fewer items overall, “more of a hunkering down than a trading down.”

    That’s exactly the kind of consumer behavior that is needed, if companies are to stop feeding into the greedflation phenomenon and to start pulling back on prices.

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  • PEP Stock Price | PepsiCo Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch

    PEP Stock Price | PepsiCo Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch

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    PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It operates through the following business segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC). The FLNA segment consists of branded convenient food businesses in the United States and Canada. The QFNA segment includes cereals, rice, and pasta under the Quaker, Pearl Milling Company, Quaker Chewy, Cap’n Crunch, Life, and Rice-A-Roni brands. The PBNA segment is composed of beverage concentrates, fountain syrups, and finished goods under various beverage brands such as Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Sierra Mist, and Mug. The LatAm segment covers beverage, food, and snack businesses in the Latin American region. The Europe segment offers beverage, food, and snack goods in Europe and Sub-Saharan Africa regions. The AMESA segment deals with all beverage and convenient food businesses in Africa, the Middle East, and South Asia. The APAC segment refers to all business operations in the Asia Pacific, Australia and New Zealand, and China region. The company was founded by Donald M. Kendall, Sr. and Herman W. Lay in 1965 and is headquartered in Purchase, NY.

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  • Consumers are shopping in more stores than ever before to save money

    Consumers are shopping in more stores than ever before to save money

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    Consumers are still showing signs of being highly sensitive to inflationary pressures and are shopping around to maximize their budgets, according to PepsiCo Inc. Chief Executive Ramon Laguarta.

    “ ‘We’re seeing consumers shopping in more stores than before. They’re looking for better deals. They’re starting to look for optimization. They are going to channels that have better perceived value.’”


    — Ramon Laguarta, CEO, PepsiCo Inc.

    Laguarta told analysts on the company’s second-quarter earnings call on Tuesday that consumers are buying more in dollar stores or buying more in bulk or at wholesale clubs.

    “So every segment of the consumer is making adjustments,” he said, according to a FactSet transcript.

    Still, PepsiCo
    PEP,
    +1.89%
    saw better elasticities in the three-month period, he said, referring to consumers’ sensitivity and response to higher prices.

    Like many consumer companies, the snacks and beverages giant has been raising prices to combat its own higher costs in the current inflationary period. But, “we’ve been able to raise prices and consumers stay within our brands,’ he said.

    See: U.S. inflation slows again, CPI shows, as Fed weighs another rate hike

    One supportive factor is low unemployment, said Laguarta. Unemployment is currently low in developed and developing markets and is trending at a record low in Mexico and certain Asian markets, he said.

     “So we’re seeing overall very good consumer behavior, especially when it refers to our categories, and that’s why we raised guidance on our top line and because of the first factor we raised guidance on the bottom line as well,” he said.

    See also: ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    PepsiCo earlier posted better-than-expected earnings for the latest quarter and raised its fiscal 2023 guidance.

    Some of PepsiCo’s more popular brands, including Lay’s, Doritos, Cheetos, and Ruffles, generated double-digit net revenue growth, along with smaller, emerging brands aimed at consumers seeking healthier choices, such as PopCorners, SunChips, Bare, and Off The Eaten Path, said the company.

    The stock was up about 1% Thursday and has gained 2.4% in the year to date, while the S&P 500
    SPX,
    +0.65%
    has gained 16%.

    For more, see: PepsiCo’s stock gains after beating estimates in latest quarter and raising guidance again

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  • ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

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    That’s the practice by many S&P 500 food and consumer companies of raising prices to protect what a new report calls their “cushioned corporate profits,” and it has enabled them to boost margins through the current inflationary period.

    Companies including Kimberly-Clark Corp.
    KMB,
    -0.45%    ,
    PepsiCo Inc.
    PEP,
    -0.18%    ,
    General Mills Inc.
    GIS,
    -0.88%
    and Tyson Foods Inc.
    TSN,
    -0.36%
    have on recent earnings calls touted their ability to raise prices, earning tidy profits and rewarding their shareholders as they go, according to the report from Accountable.US, a liberal-leaning consumer-advocacy group.

    And they have signaled their intention to continue to take “price actions” even as the Federal Reserve has hiked interest rates an unprecedented 10 times in an effort to tame inflation.

    “Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from raising consumer prices despite reporting billions in extra net earnings and over a trillion dollars in new giveaways to wealthy investors,” said Liz Zelnick, director of economic security and corporate power at Accountable.US.

    “Corporate greed is a stubborn thing and requires serious action from Congress. The Fed has not seen an adequate return on its investment in a policy that has already created fissures in the economy that could lead to recession. It’s just not worth it,” she said. 

    Now read: Skip, pause or hike? A guide to what is expected from the Fed on Wednesday.

    Accountable.US is not alone in calling out price hikes on essentials including food. Walmart Inc.
    WMT,
    +0.73%
    is also unhappy with packaged-food companies that have steadily raised prices in dry grocery and consumable goods, according to a recent report from research company CFRA.

    “Given Walmart’s enormous bargaining power over its suppliers, we expect the retail giant to push back on further price increases from its packaged-food suppliers,” he said. That is expected to hurt margins, especially if volume growth does not recover.

    For more, see: Inflation in goods from cereal to soup has given a boost to consumer food stocks. Can Walmart help bring prices, both food and stock, down?

    May inflation data released Tuesday found that food prices were up 0.2% from April, after remaining flat for the previous two months. Food prices are up 6.7% over the last year. The food-at-home index is up 5.8% over the last year, while the index for cereals and bakery products is up 10.7%.

    Food prices started to rise about two years ago, when supply-chain issues and higher fuel and commodity prices led companies to pass some of those costs on to customers.

    But companies appear determined to raise prices even more, despite a decline in shipping and gas costs. Gasoline was down 5.6% in May from April and fuel oil fell 7.7%, according to consumer-price-index figures.

    Also read: U.S. inflation slows again, CPI shows, and might keep Fed on sidelines

    Kimberly-Clark executives told analysts on its recent earnings call that the company is able to “rapidly implement broad pricing actions” and acknowledged that “pricing has continued to be a big driver behind our top-line growth.”

    The company’s first-quarter earnings topped expectations and it raised guidance for the full year. That’s after it raised prices by 10% for a second straight quarter, driving margins wider by 340 basis points.

    Shareholders were rewarded to the tune of $425 million during the quarter, the Accountable.US report notes.

    See also: Colgate-Palmolive’s stock pops after earnings beat as company raises prices by double-digit percentage

    PepsiCo Chief Executive Ramon Laguarta told analysts on that company’s recent earnings call that most of its price increases are behind it.

    However, he said, “obviously, there are some markets, highly inflationary markets around the world, where we might have to take additional pricing. If you think about Argentina, Turkey, Egypt — those kinds of markets where the currencies are suffering. But the majority of our pricing is already done,” he said, according to a FactSet transcript.

    PepsiCo’s 2022 earnings rose 16.9% to nearly $9 billion, and it spent more than $7.6 billion on stock buybacks and dividends, with the former up 1,313% from 2021.

    General Mills, meanwhile, bragged about “getting smart about how we look at pricing” on its recent call. The parent of brands including Cheerios, Nature Valley, Blue Buffalo pet products and Pillsbury raised its fiscal 2023 guidance in February.

    And Tyson executives touted the “significant pricing power of our portfolio with a year-over-year increase of 7.6%.” Tyson’s latest quarter included a surprise loss, as it was hit by weak demand for meat, along with plant closures and job cuts.

    For more, see: Tyson Foods stock slides after meat producer swings to surprise loss

    But Tyson had net income of over $3.2 billion in 2022, up from $3 billion in 2021, and it rewarded shareholders with $1.35 billion in buybacks and dividends.

    For Accountable.US, it’s more compelling evidence that the Fed’s rate-hike strategy “has failed to root out one of the main drivers of inflation and should give the [Federal Open Market Committee] pause before lifting rates again this week to the detriment of jobs and the economy.”

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP,
    +0.36%
    has fallen 1.6% to date in 2023, while the SPDR S&P Retail ETF
    XRT,
    +1.89%
    has gained 4.6%. The S&P 500
    SPX,
    +0.62%
    has gained 13% in the same period.

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  • 6 Companies That Raised Their Dividends This Week

    6 Companies That Raised Their Dividends This Week

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    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/apple-pepsi-dividend-stock-investing-3516ced1

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  • Trinity Legacy Partners LLC Boosts Stake in PepsiCo, Inc. (NASDAQ:PEP)

    Trinity Legacy Partners LLC Boosts Stake in PepsiCo, Inc. (NASDAQ:PEP)

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    Trinity Legacy Partners LLC raised its position in PepsiCo, Inc. (NASDAQ:PEP – Get Rating) by 2.1% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 31,177 shares of the company’s stock after buying an additional 636 shares during the period. PepsiCo accounts for 2.2% of Trinity Legacy Partners LLC’s investment portfolio, making the stock its 13th biggest holding. Trinity Legacy Partners LLC’s holdings in PepsiCo were worth $5,632,000 at the end of the most recent quarter.

    Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. City State Bank grew its position in shares of PepsiCo by 6.5% during the 3rd quarter. City State Bank now owns 1,986 shares of the company’s stock valued at $324,000 after acquiring an additional 122 shares during the period. Hixon Zuercher LLC boosted its holdings in PepsiCo by 4.6% in the 3rd quarter. Hixon Zuercher LLC now owns 26,730 shares of the company’s stock worth $4,364,000 after buying an additional 1,168 shares during the period. Hendershot Investments Inc. boosted its holdings in PepsiCo by 1.2% in the 3rd quarter. Hendershot Investments Inc. now owns 95,130 shares of the company’s stock worth $15,531,000 after buying an additional 1,118 shares during the period. IAG Wealth Partners LLC boosted its holdings in PepsiCo by 7.4% in the 3rd quarter. IAG Wealth Partners LLC now owns 1,504 shares of the company’s stock worth $246,000 after buying an additional 104 shares during the period. Finally, Global Trust Asset Management LLC boosted its holdings in PepsiCo by 4.0% in the 3rd quarter. Global Trust Asset Management LLC now owns 7,182 shares of the company’s stock worth $1,173,000 after buying an additional 275 shares during the period. Hedge funds and other institutional investors own 70.76% of the company’s stock.

    PepsiCo Price Performance

    Shares of PepsiCo stock opened at $175.13 on Friday. The firm has a market cap of $241.20 billion, a PE ratio of 27.32, a price-to-earnings-growth ratio of 3.15 and a beta of 0.53. PepsiCo, Inc. has a 12-month low of $154.86 and a 12-month high of $186.84. The company has a quick ratio of 0.61, a current ratio of 0.80 and a debt-to-equity ratio of 2.06. The company’s fifty day simple moving average is $173.66 and its two-hundred day simple moving average is $175.78.

    PepsiCo (NASDAQ:PEP – Get Rating) last announced its earnings results on Thursday, February 9th. The company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.64 by $0.03. The firm had revenue of $28 billion for the quarter, compared to analyst estimates of $26.82 billion. PepsiCo had a net margin of 10.31% and a return on equity of 51.34%. The company’s revenue for the quarter was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.53 EPS. As a group, equities analysts expect that PepsiCo, Inc. will post 7.23 EPS for the current year.

    PepsiCo Dividend Announcement

    The business also recently announced a quarterly dividend, which will be paid on Friday, March 31st. Stockholders of record on Friday, March 3rd will be paid a dividend of $1.15 per share. This represents a $4.60 dividend on an annualized basis and a dividend yield of 2.63%. The ex-dividend date is Thursday, March 2nd. PepsiCo’s payout ratio is 71.76%.

    Wall Street Analysts Forecast Growth

    Several research analysts recently commented on the stock. Argus raised their price objective on shares of PepsiCo from $195.00 to $206.00 in a report on Wednesday, December 7th. Credit Suisse Group raised their price target on shares of PepsiCo from $175.00 to $182.00 and gave the company a “neutral” rating in a report on Friday, February 10th. Deutsche Bank Aktiengesellschaft raised their price target on shares of PepsiCo from $181.00 to $186.00 and gave the company a “hold” rating in a report on Tuesday, December 6th. Barclays cut their price target on shares of PepsiCo from $197.00 to $187.00 and set an “overweight” rating for the company in a report on Monday, February 13th. Finally, Wells Fargo & Company raised their price objective on shares of PepsiCo from $187.00 to $190.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 8th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $184.08.

    Insider Activity

    In related news, CEO Ramkumar Krishnan sold 16,827 shares of the business’s stock in a transaction dated Tuesday, March 7th. The shares were sold at an average price of $172.70, for a total transaction of $2,906,022.90. Following the sale, the chief executive officer now owns 49,000 shares of the company’s stock, valued at $8,462,300. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other PepsiCo news, Director Robert C. Pohlad sold 75,000 shares of PepsiCo stock in a transaction dated Thursday, March 9th. The shares were sold at an average price of $172.47, for a total value of $12,935,250.00. Following the completion of the transaction, the director now directly owns 183,929 shares of the company’s stock, valued at $31,722,234.63. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Ramkumar Krishnan sold 16,827 shares of PepsiCo stock in a transaction dated Tuesday, March 7th. The stock was sold at an average price of $172.70, for a total transaction of $2,906,022.90. Following the completion of the transaction, the chief executive officer now directly owns 49,000 shares of the company’s stock, valued at $8,462,300. The disclosure for this sale can be found here. Insiders own 0.12% of the company’s stock.

    PepsiCo Profile

    (Get Rating)

    PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It operates through the following business segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC).

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    Institutional Ownership by Quarter for PepsiCo (NASDAQ:PEP)

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  • PepsiCo Beats Earnings Estimates, Hikes Dividend

    PepsiCo Beats Earnings Estimates, Hikes Dividend

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    PepsiCo


    beat earnings and revenue estimates in the fourth quarter, driven by higher prices. It increased its annual dividend, sending the stock higher in premarket trading Thursday.

    The beverages and snacks giant (ticker:PEP) reported adjusted earnings per share (EPS) of $1.67 on sales of $28 billion. Analysts were expecting EPS of $1.65 on sales of $26.8 billion.

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  • PepsiCo to lay off ‘hundreds’ in snack and beverage divisions: WSJ

    PepsiCo to lay off ‘hundreds’ in snack and beverage divisions: WSJ

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    PepsiCo Inc.
    PEP,
    -1.38%
    is laying off “hundreds” of workers at the headquarters of its North American snacks and beverages divisions, The Wall Street Journal reported Monday, citing people familiar with the matter. Hundreds of jobs will be eliminated, one of the people told the newspaper. In a memo to staff viewed by the Journal, PepsiCo told employees that the goal was to simplify the organization so it can operate “more efficiently.” Shares of Pepsi were flat in the extended session Monday after ending the regular trading day down 1.4%. Several major tech companies, including Amazon.com Inc.
    AMZN,
    -3.31%
    and Google parent Alphabet Inc.
    GOOGL,
    -0.96%
    GOOG,
    -0.95%
    are conducting or planning layoffs or have embarked on hiring freezes, and some retailers such as Walmart.com
    WMT,
    -1.02%
    have followed suit.

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  • PEP Stock Price | PepsiCo Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch

    PEP Stock Price | PepsiCo Inc. Stock Quote (U.S.: Nasdaq) | MarketWatch

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    PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It operates through the following business segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC). The FLNA segment markets, distributes, and sells snack foods under the Lay’s, Doritos, Cheetos, Tostitos, Fritos, Ruffles, and Santitas brands. The QFNA segment includes cereals, rice, and pasta under the Quaker, Pearl Milling Company, Quaker Chewy, Cap’n Crunch, Life, and Rice-A-Roni brands. The PBNA segment is composed of beverage concentrates, fountain syrups, and finished goods under various beverage brands such as Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Diet Mountain Dew, Sierra Mist, and Mug. The LatAm segment covers beverage, food, and snack businesses in the Latin American region. The Europe segment includes beverage, food, and snack goods in Europe and Sub-Saharan Africa regions. The AMESA segment deals with all beverage and convenient food businesses in Africa, the Middle East and South Asia. The APAC segment consists of all business operations in the Asia Pacific, Australia and New Zealand, and China region. The company was founded by Donald M. Kendall, Sr. and Herman W. Lay in 1965 and is headquartered in Purchase, NY.

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