On April 23, PepsiCo’s highly anticipated first-quarter report was released.
The setback occurred when the FDA recalled over 40 Quaker Oats products in December 2023 due to potential salmonella contamination, resulting in a 22% drop in Quaker Food sales volume for the quarter.
However, the report exceeded expectations:
→ Earnings per share: Actual = $1.16, Expected = $1.518;
→ Gross revenue: Actual = $18.25 billion, Expected = $18.08 billion.
By April 25, PepsiCo’s (PEP) stock price reached its annual peak, surpassing $180.
Then, on May 13, PepsiCo’s (PEP) stock price hit a new yearly high, exceeding $181.
Technical analysis of the PEP stock chart shows:
→ The price is within a long-term upward channel (blue);
→ Since March, a short-term, steeper ascending channel has formed (green).
The price of PEP stock has risen by about 10% since early March, potentially prompting shareholders to consider profits. David Flavell, Vice President, General Counsel, and Secretary of PepsiCo, sold over 6,000 shares on May 10.
Therefore, the PEP stock market may be vulnerable to a retracement, with potential resistance levels at $180 and the median line of the blue channel.
If a correction occurs, a decline towards the lower boundary of the green channel is possible.
Analysts forecast an average price target of $190 for PEP stock within the next 12 months (TipRanks).
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