why PepsiCo Inc [PEP] is a Good Choice for Investors After New Price Target of $186.78

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PepsiCo Inc [NASDAQ: PEP] traded at a low on 11/06/23, posting a -0.05 loss after which it closed the day’ session at $166.70. The company report on November 6, 2023 at 9:00 AM that PepsiCo Announces New Chief Financial Officer; Long-Standing CFO to Leave For Role at Disney.

PepsiCo, Inc. (NASDAQ: PEP) today announced that Vice Chairman and Chief Financial Officer, Hugh Johnston, will be leaving the company on November 30.  James (Jamie) Caulfield is appointed Executive Vice President, Chief Financial Officer PepsiCo.

Johnston retires from PepsiCo after 34 years of incredible and stellar service to the company.  He joined the company in 1987 and assumed the role of Chief Financial Officer in 2010.  Over the years, Johnston’s portfolio has included a variety of responsibilities, including President, Pepsi Cola North America, leadership of PepsiCo’s information technology function since 2015, the company’s global e-commerce business from 2015 to 2019 and the Quaker Foods North America division from 2014 to 2016.

The results of the trading session contributed to over 5750311 shares changing hands. Over the past one week, the price volatility of PepsiCo Inc stands at 1.37% while the volatility over the past one month is 1.64%.

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The market cap for PEP stock reached $229.19 billion, with 1.38 billion shares outstanding and 1.37 billion shares in the current float. Compared to the average trading volume of 5.22M shares, PEP reached a trading volume of 5750311 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about PepsiCo Inc [PEP]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PEP shares is $186.78 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PEP stock is a recommendation set at 2.33. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

HSBC Securities have made an estimate for PepsiCo Inc shares, keeping their opinion on the stock as Hold, with their previous recommendation back on October 25, 2023.

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The Average True Range (ATR) for PepsiCo Inc is set at 2.69, with the Price to Sales ratio for PEP stock in the period of the last 12 months amounting to 2.50. The Price to Book ratio for the last quarter was 12.19, with the Price to Cash per share for the same quarter was set at 7.48. Price to Free Cash Flow for PEP in the course of the last twelve months was 32.99 with Quick ratio for the last quarter at 0.71.

How has PEP stock performed recently?

PepsiCo Inc [PEP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.72. With this latest performance, PEP shares gained by 4.00% in over the last four-week period, additionally sinking by -13.78% over the last 6 months – not to mention a drop of -6.23% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PEP stock in for the last two-week period is set at 54.71, with the RSI for the last a single of trading hit 63.55, and the three-weeks RSI is set at 49.62 for PepsiCo Inc [PEP]. The present Moving Average for the last 50 days of trading for this stock 169.40, while it was recorded at 165.69 for the last single week of trading, and 178.97 for the last 200 days.

PepsiCo Inc [PEP]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and PepsiCo Inc [PEP] shares currently have an operating margin of +13.73 and a Gross Margin at +53.38. PepsiCo Inc’s Net Margin is presently recorded at +10.31.

Return on Total Capital for PEP is now 20.23, given the latest momentum, and Return on Invested Capital for the company is 16.44. Return on Equity for this stock inclined to 53.69, with Return on Assets sitting at 9.66. When it comes to the capital structure of this company, PepsiCo Inc [PEP] has a Total Debt to Total Equity ratio set at 241.92. Additionally, PEP Total Debt to Total Capital is recorded at 70.75, with Total Debt to Total Assets ending up at 45.00. Long-Term Debt to Equity for the company is recorded at 219.20, with the Long-Term Debt to Total Capital now at 64.11.

Reflecting on the efficiency of the workforce at the company, PepsiCo Inc [PEP] managed to generate an average of $28,286 per employee. Receivables Turnover for the company is 9.17 with a Total Asset Turnover recorded at a value of 0.94.PepsiCo Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.71 and a Current Ratio set at 0.88.

Earnings analysis for PepsiCo Inc [PEP]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PEP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for PepsiCo Inc go to 8.64%.

Insider trade positions for PepsiCo Inc [PEP]

The top three institutional holders of PEP stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2579%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $201.66 billion in PEP stocks shares; and BERKSHIRE HATHAWAY INC, currently with $177.59 billion in PEP stock with ownership which is approximately 5.7994%.

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