Fintel reports that on July 17, 2023, Morgan Stanley downgraded their outlook for PepsiCo (NASDAQ:PEP) from Overweight to Equal-Weight.

Analyst Price Forecast Suggests 8.83% Upside

As of July 6, 2023, the average one-year price target for PepsiCo is 204.84. The forecasts range from a low of 179.78 to a high of $231.00. The average price target represents an increase of 8.83% from its latest reported closing price of 188.21.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for PepsiCo is 88,791MM, an increase of 0.86%. The projected annual non-GAAP EPS is 7.36.

PepsiCo Declares $1.26 Dividend

On May 2, 2023 the company declared a regular quarterly dividend of $1.26 per share ($5.06 annualized). Shareholders of record as of June 2, 2023 received the payment on June 30, 2023. Previously, the company paid $1.15 per share.

At the current share price of $188.21 / share, the stock’s dividend yield is 2.69%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.88%, the lowest has been 2.47%, and the highest has been 3.63%. The standard deviation of yields is 0.24 (n=235).

The current dividend yield is 0.81 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 1.06. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.24%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 4455 funds or institutions reporting positions in PepsiCo. This is an increase of 10 owner(s) or 0.22% in the last quarter. Average portfolio weight of all funds dedicated to PEP is 0.81%, an increase of 29.51%. Total shares owned by institutions increased in the last three months by 2.95% to 1,145,647K shares. The put/call ratio of PEP is 0.79, indicating a bullish outlook.

What are Other Shareholders Doing?

Ofi Invest Asset Management holds 56,229K shares representing 4.08% ownership of the company.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 42,634K shares representing 3.09% ownership of the company. In it’s prior filing, the firm reported owning 41,873K shares, representing an increase of 1.78%. The firm decreased its portfolio allocation in PEP by 5.13% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 32,137K shares representing 2.33% ownership of the company. In it’s prior filing, the firm reported owning 31,849K shares, representing an increase of 0.90%. The firm decreased its portfolio allocation in PEP by 5.57% over the last quarter.

Bank Of America holds 26,937K shares representing 1.96% ownership of the company. In it’s prior filing, the firm reported owning 25,721K shares, representing an increase of 4.51%. The firm decreased its portfolio allocation in PEP by 4.70% over the last quarter.

Geode Capital Management holds 26,127K shares representing 1.90% ownership of the company. In it’s prior filing, the firm reported owning 25,637K shares, representing an increase of 1.87%. The firm decreased its portfolio allocation in PEP by 4.89% over the last quarter.

PepsiCo Background Information
(This description is provided by the company.)

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales. Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. “Winning with Purpose” reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of the business

Additional reading:

• PepsiCo Reports Second-Quarter 2023 Results; Raises Full-Year Guidance Reported (GAAP) Second-Quarter and Year-to-Date 2023 Results Second-Quarter Year-to-Date Net revenue growth 10.4% 10.3% Foreign exchange impact on net revenue (2.5)% (2.5)% Earnin
• U.S. $4,200,000,000 364-DAY CREDIT AGREEMENT Dated as of May 26, 2023 PEPSICO, INC., as Borrower, THE LENDERS NAMED HEREIN, CITIBANK, N.A., as Administrative Agent, JPMORGAN CHASE BANK, N.A. and BANK OF AMERICA, N.A., as Syndication Agent, CITIBANK,
• U.S. $4,200,000,000 FIVE YEAR CREDIT AGREEMENT Dated as of May 26, 2023 PEPSICO, INC., as Borrower, THE LENDERS NAMED HEREIN, CITIBANK, N.A., as Administrative Agent, JPMORGAN CHASE BANK, N.A. and BANK OF AMERICA, N.A., as Syndication Agent, CITIBANK
• Form of Annual Long-Term Incentive Agreement.
• PepsiCo Reports First-Quarter 2023 Results; Raises Full-Year Guidance Reported (GAAP) First-Quarter 2023 Results First-Quarter Net revenue growth 10.2% Foreign exchange impact on net revenue (2.5)% Earnings per share (EPS) $1.40 EPS change (54)% Fore

This article originally appeared on Fintel

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