PepsiCo reported a profit and revenue surplus for the first quarter
The shares of PepsiCo, Inc. (NASDAQ: PEP) rose 1.8% to trade at $ 151.44 and hit a record high of $ 152.19 to begin with after the soda giant posted an adjusted profit of $ 1.21 per share for the first quarter – slightly higher than analysts’ forecast of $ 1.12 per share, which was also just above estimates. Increasing beverage sales in North America helped the company improve sales and earnings numbers, and PepsiCo raised its full-year forecast as a result.
Prior to today’s new record high, PEP hit an all-time high of $ 150.70 on July 7, posting 10 positive closing prices in the last 12 sessions. With an increase of 12% compared to the previous year, the share will try to create a certain gap between its previous break-even level, which was overcome with today’s price movement.
If you’re wondering why no analysts are rushing with upgrades, it’s because of the 14 analysts in the coverage, eight have a “strong buy” rating on PEP. However, the stock’s 12-month consensus target of $ 156.65 was a small premium of 3.5% from last night’s closing price at $ 149.51. So when analysts change their stance, it can take the form of target price increases.
The option pits were more bullish than usual, as measured by the 10-day call / put volume ratio of PepsiCo stock of 2.34 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX). This ratio is over 92% of last year’s readings, suggesting that calls are being answered much faster than usual.
There’s a lot more of it today. In the first hour of trading alone, over 22,000 calls changed hands, a volume that is 22 times the average intraday amount. First up is the July 152.50 call, where new positions are bought to open.
Now might be a good time to weigh PEP’s next move with options, especially given an afterthought Volatility Crush. Today, the stock’s Schaeffer’s Volatility Index (SVI) was 15% higher than just 9% of all other values in its annual range, suggesting that option providers are currently pricing in relatively low volatility expectations.