In the past week, PEP stock has gone up by 3.22%, with a monthly gain of 1.14% and a quarterly plunge of -11.52%. The volatility ratio for the week is 1.17%, and the volatility levels for the last 30 days are 1.58% for PepsiCo Inc The simple moving average for the last 20 days is 3.17% for PEP stock, with a simple moving average of -8.69% for the last 200 days.
Is It Worth Investing in PepsiCo Inc (NASDAQ: PEP) Right Now?
PepsiCo Inc (NASDAQ: PEP) has a price-to-earnings ratio of 22.55x that is above its average ratio. Additionally, the 36-month beta value for PEP is 0.54. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 4 rating it as “overweight,” 13 rating it as “hold,” and 1 rating it as “sell.”
The public float for PEP is 1.37B and currently, short sellers hold a 1.47% ratio of that float. The average trading volume of PEP on January 27, 2025 was 6.24M shares.
PEP) stock’s latest price update
The stock of PepsiCo Inc (NASDAQ: PEP) has increased by 2.62 when compared to last closing price of 149.12. Despite this, the company has experienced a 3.22% gain in its stock price over the last five trading sessions. http://feeds.benzinga.com reported 2025-01-26 that Costco Wholesale Corp. COST announced plans to replace PepsiCo Inc. PEP with Coca-Cola Co KO as its food court beverage supplier, marking a significant shift in the retail giant’s strategy and highlighting Coca-Cola’s growing market momentum. What Happened: The change, announced by Costco CEO Ron Vachris at the company’s annual shareholders meeting, will take effect this summer, returning Coca-Cola products to Costco’s food courts after a decade-long absence. “We will be converting our food court fountain business back over to Coca-Cola,” Vachris said, according to CNN. The move comes as Coca-Cola demonstrates strong growth potential, particularly in emerging markets. The beverage contract, which includes fountain drinks, cups, and straws, has been held by PepsiCo since 2013. The switch back to Coca-Cola coincides with analysts’ bullish outlook on the beverage maker. See Also: Trump Is About To Make Americans Pay Even More For Coffee To Punish Colombia, Says AOC: He Is All About Making Inflation ‘Worse’ Why It Matters: Piper Sandler analyst Michael Lavery recently initiated coverage of Coca-Cola with an “Overweight” rating and a $74 price target, citing the company’s strong position in North America and Latin America, which contribute approximately 70% of its operating income. The transition aligns with Costco’s commitment to maintaining its iconic $1.50 hot dog and soda combination, a loss-leader that sold approximately 150 million units last year. This pricing strategy, unchanged since 1985, remains central to Costco’s customer value proposition, despite inflationary pressures affecting other food court items. Coca-Cola’s return to Costco’s food courts could further strengthen its market position. The company’s significant exposure to emerging markets, where roughly 68% of the population doesn’t consume commercial beverages, represents a growth opportunity of about 4.5 times its current consumer base, according to Piper Sandler’s analysis.
Analysts’ Opinion of PEP
Many brokerage firms have already submitted their reports for PEP stocks, with Piper Sandler repeating the rating for PEP by listing it as a “Overweight.” The predicted price for PEP in the upcoming period, according to Piper Sandler is $171 based on the research report published on January 07, 2025 of the current year 2025.
Deutsche Bank, on the other hand, stated in their research note that they expect to see PEP reach a price target of $184, previously predicting the price at $179. The rating they have provided for PEP stocks is “Buy” according to the report published on December 12th, 2024.
TD Cowen gave a rating of “Hold” to PEP, setting the target price at $183 in the report published on October 10th of the previous year.
PEP Trading at -1.12% 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 -16.57% of loss for the given period.
Volatility was left at 1.58%, however, over the last 30 days, the volatility rate increased by 1.17%, as shares sank -0.34% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.29% lower at present.
During the last 5 trading sessions, PEP rose by +2.72%, which changed the moving average for the period of 200-days by -10.74% in comparison to the 20-day moving average, which settled at $148.28. In addition, PepsiCo Inc saw 0.63% 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 0.2. Equity return is now at value 48.91, with 9.34 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 0.27. The debt to equity ratio resting at 2.31. The interest coverage ratio of the stock is 15.98.
Currently, EBITDA for the company is 15.21 billion with net debt to EBITDA at 2.32. When we switch over and look at the enterprise to sales, we see a ratio of 2.71. The receivables turnover for the company is 7.6for trailing twelve months and the total asset turnover is 0.91. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.89.
Conclusion
In conclusion, PepsiCo Inc (PEP) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
