Why PepsiCo Inc (PEP) Stock is Currently -3.76% Off from Its 20-Day SMA?

Piper Sandler has recently initiated PepsiCo Inc (PEP) stock to Overweight rating, as announced on January 7, 2025, according to Finviz. Earlier, on December 12, 2024, Deutsche Bank had raised the stock from a Hold to Buy, setting a price target of $184 for PEP stock. TD Cowen also reduced Hold rating with a price target of $183. Additionally, Morgan Stanley reduced rating on September 20, 2024, with a target price of $185. DZ Bank analysts, in their report published on July 19, 2024, also reduced Hold rating for PepsiCo Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

PepsiCo Inc (PEP) Stock Trading Recap

On Tuesday, PepsiCo Inc (PEP) stock saw a modest uptick, ending the day at $144.95 which represents a slight increase of $0.45 or 0.31% from the prior close of $144.5. The stock opened at $144.19 and touched a low of $143.56 during the day, reaching a high of $145.14. The volume of shares traded was 6.96 million exceeding the average volume of 6.03 million.


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PEP Stock Performance and Moving Averages

In recent trading, PepsiCo Inc (PEP) stock price has shown some volatility, fluctuating -0.90% over the last five trades and -7.54% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -11.54%, and it has plunged by -17.08% in the previous three months. Currently, PEP is trading at -3.76%, -7.96%, and -13.97% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, PEP, a Consumer Defensive sector stock, is trading -20.97% below its 52-week high but remains 2.43% above its 52-week low. The Average True Range (ATR) (14 days) of 2.69 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

PepsiCo Inc’s Profitability and Valuation Ratios

PepsiCo Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 15.51% and a profit margin of 10.18%, with a gross margin of -11.54%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, PepsiCo Inc’s market capitalization stands at $198.87 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 21.36, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 16.89. Additionally, the Price-to-Sales Ratio is 2.16, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 10.23, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.34% of PepsiCo Inc (PEP)’s shares, while financial institutions hold 74.99%.

Notable insider trades include Flavell David, EVP, Gen Counsel & Corp Sec at PepsiCo Inc (PEP), who sold 6628 shares on May 10 ’24, at $179.86 each, totaling $1.19 million. On May 09 ’24, Krishnan Ramkumar, CEO, PBNA, sold 5620 shares for $178 each, amounting to $1.00 million. Additionally, on Mar 11 ’24, Krishnan Ramkumar sold 4563 shares at $164.44 each, generating $0.75 million.

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