Insider Trading Trends At PepsiCo, Inc. (PEP)

The insider sell/buy ratio of PepsiCo, Inc. (NASDAQ:PEP) is recorded at 8.38, pointing to bearish feelings about the stock among corporate executives and directors. PEP recorded 5 sales on the open market in the last three months. They sold nearly 205,893 shares while purchases amounted to 24,584 shares that period. Looking even further back to 12 months, corporate insiders offloaded 408,308 shares when buyers snapped up 464,654 shares. The 12-month’s totals signify about a 0.88-to-1 sell/buy ratio.

Spanos Mike parted with a total of 20.07 thousand shares of PepsiCo, Inc. (PEP) at average share price of $112.42. This insider trade in the company took place on 10/31/2018. The total for the sales was set at $2.26 million. After this transaction, the CEO, AMENA account balance stood at 35.52 thousand shares. The stock lost -1.11 percent since that insider sale. On 10/23/2018, Khan Mehmood, Vice Chair,EVP,CSO,Global R&D, sold 168.3 thousand shares at a price per share of $110.12. This removed 18.53 million shares from the insider’s fortune and the stock saw a 0.95 percent rally in value since the news became public. This transaction left 76.22 thousand shares in the Vice Chair,EVP,CSO,Global R&D account.

On 10/16/2018, EVP Gov Affairs, GC & Corp Sec Yawman David performed a sale transaction worth $1.29 million. This sale at $106.99 each has eliminated 12.02 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.91 percent increase since the transaction was reported. The insider now is left with 47.11 thousand shares remaining in the account. Narasimhan Laxman, who performs the CEO, Latin America and ESSA job, sold 5.5 thousand shares for $587.35 thousand. The disposal occurred on 10/04/2018 was priced at $106.79 per share. The share price soared 4.1 percent since the reporting date. Narasimhan Laxman now left with a stake of 130.14 thousand PEP stock worth $14.47 million after the insider selling.

The 12-month median price target for PepsiCo, Inc. (PEP) assigned by the analysts stands at $116, which represents a return potential of 4.34 percent when compared to the closing price of the stock of $111.17 on Friday, November 02. The lowest price target for the stock is $103 — slightly more than -7.35 percent from PEP’s current share price. The stock will probably climb 5.33 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $134-month high price target. This represents a whopping 20.54 percent increase from where shares are trading today.They sold nearly zero shares

On momentum oscillators front, ‘RSI’ has touched 51.71 on daily chart, which may remain a cause for concern. If the price breaks below $108.5 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $112.3 mark may result into a pull-back move towards $113.44 level. The stock is currently hovering around the first support level of $109.83. Below this, the next support is placed in the zone of $108.5. Till the time, the PEP stock trades above this level, bulls have nothing to fear.

Shares of PepsiCo, Inc. (PEP) are trading at a P/E ratio of 19.24 times earnings reported for the past 12 months. The industry PEP operates in has an average P/E of 33.17. Its P/E ratio went as low as 19.14X and as high as 27.38 over the 5-year span. Further, it is sporting a 2.48 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.25. 54.3 percent is the gross profit margin for PepsiCo, Inc. and operating margin sits at 15.9 percent. Along with this, the net profit margin is 7.7 percent.

On 2nd of November, PepsiCo, Inc. (NASDAQ:PEP) shares ended lower after a volatile session. The shares dropped -0.34 points or -0.3 percent at $111.17 with a heavy trade volume of 6.512 million shares. After opening the session at $111.49, the shares went as high as $112.1 and as low as $109.63, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $160 billion and now has 1.44 billion shares outstanding. PepsiCo, Inc. (PEP) stock has gained 4.28 percent of market value in 21 trading days.

In last reported earnings results, PEP earned $1.59 per share, better than the $1.57, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $16.5B, better than the $16.4B analysts expected. Earnings are estimated to increase by 16.6 percent this year, 5.83 percent next year and continue to increase by 6.95 percent annually for the next 5 years. Investors will get their next glimpse of PEP’s Q4 earnings on February 14. Analysts are forecasting revenue to suffer decline of -0.1 percent to $19.5B in the next fiscal quarter, while earnings are seen soaring by nearly 13.74 percent to $1.49 per share. History has shown that shares in PepsiCo, Inc. have gone up on 17 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings.

PEP stock has a trailing 3-year beta of 0.58, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.8 a share in the trailing twelve months. The stock’s value has fallen -7.3 percent year to date (YTD) against a rise of 1.02 percent in 12 month’s time. The company’s shares still trade -9.26 percent away from its 1-year high of $122.51 and 15.87 percent up from 52-week low of $95.94. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.