PepsiCo Inc (NASDAQ: PEP)’s stock price has soared by 1.76 in relation to previous closing price of 174.96. Nevertheless, the company has seen a gain of 3.06% in its stock price over the last five trading days. seekingalpha.com reported 2024-08-04 that Market volatility has soared amid economic uncertainty, slower job growth, anxiety over the November U.S. Presidential election, and concerns over the timing and impact of interest rate-easing. Market reactions to rate cuts and recession prospects could lead to rotations into sectors like real estate and consumer staples, Mega-Cap stocks with strong profitability, and income-focused equities and bonds. The tech sell-off is deepening, as the Nasdaq hits correction territory, beloved AI-fueled stocks fall, underscoring the need for balance.
Is It Worth Investing in PepsiCo Inc (NASDAQ: PEP) Right Now?
The price-to-earnings ratio for PepsiCo Inc (NASDAQ: PEP) is above average at 25.83x. The 36-month beta value for PEP is also noteworthy at 0.54. There are mixed opinions on the stock, with 10 analysts rating it as a “buy,” 2 rating it as “overweight,” 10 rating it as “hold,” and 0 rating it as “sell.”
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The public float for PEP is 1.37B, and at present, short sellers hold a 1.37% of that float. The average trading volume of PEP on August 05, 2024 was 5.17M shares.
PEP’s Market Performance
The stock of PepsiCo Inc (PEP) has seen a 3.06% increase in the past week, with a 9.50% rise in the past month, and a 1.48% gain in the past quarter. The volatility ratio for the week is 1.87%, and the volatility levels for the past 30 days are at 1.84% for PEP. The simple moving average for the past 20 days is 5.96% for PEP’s stock, with a 5.33% simple moving average for the past 200 days.
Analysts’ Opinion of PEP
Many brokerage firms have already submitted their reports for PEP stocks, with DZ Bank repeating the rating for PEP by listing it as a “Hold.” The predicted price for PEP in the upcoming period, according to DZ Bank is $183 based on the research report published on July 19, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see PEP reach a price target of $190, previously predicting the price at $200. The rating they have provided for PEP stocks is “Buy” according to the report published on July 03rd, 2024.
Exane BNP Paribas gave a rating of “Neutral” to PEP, setting the target price at $174 in the report published on June 24th of the current year.
PEP Trading at 5.44% from the 50-Day Moving Average
After a stumble in the market that brought PEP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.28% of loss for the given period.
Volatility was left at 1.84%, however, over the last 30 days, the volatility rate increased by 1.87%, as shares surge +8.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.68% lower at present.
During the last 5 trading sessions, PEP rose by +3.06%, which changed the moving average for the period of 200-days by +10.53% in comparison to the 20-day moving average, which settled at $168.71. In addition, PepsiCo Inc saw 4.83% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PEP starting from Flavell David, who sale 6,628 shares at the price of $179.86 back on May 10 ’24. After this action, Flavell David now owns 36,264 shares of PepsiCo Inc, valued at $1,192,131 using the latest closing price.
Krishnan Ramkumar, the CEO, PBNA of PepsiCo Inc, sale 5,620 shares at $178.00 during a trade that took place back on May 09 ’24, which means that Krishnan Ramkumar is holding 53,953 shares at $1,000,360 based on the most recent closing price.
Stock Fundamentals for PEP
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.55 for the gross margin
The net margin for PepsiCo Inc stands at 0.1. The total capital return value is set at 0.21. Equity return is now at value 51.27, with 9.74 for asset returns.
Based on PepsiCo Inc (PEP), the company’s capital structure generated 0.7 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 2.31. The interest coverage ratio of the stock is 36.72.
Currently, EBITDA for the company is 17.04 billion with net debt to EBITDA at 2.16. When we switch over and look at the enterprise to sales, we see a ratio of 3.08. The receivables turnover for the company is 7.71for trailing twelve months and the total asset turnover is 0.92. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.83.
Conclusion
In summary, PepsiCo Inc (PEP) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
