Guinness Asset Management LTD cut its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 3.1% during the 4th quarter, Holdings Channel.com reports. The institutional investor owned 1,536,967 shares of the company’s stock after selling 48,590 shares during the quarter. PepsiCo comprises 3.6% of Guinness Asset Management LTD’s portfolio, making the stock its 11th largest holding. Guinness Asset Management LTD’s holdings in PepsiCo were worth $220,953,000 as of its most recent SEC filing.
Several other hedge funds also recently made changes to their positions in PEP. Brighton Jones LLC boosted its position in shares of PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock valued at $9,031,000 after purchasing an additional 6,574 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of PepsiCo during the first quarter valued at approximately $251,000. Sivia Capital Partners LLC boosted its position in shares of PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock valued at $862,000 after purchasing an additional 3,790 shares in the last quarter. Schnieders Capital Management LLC. boosted its position in shares of PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock valued at $5,039,000 after purchasing an additional 3,502 shares in the last quarter. Finally, Sei Investments Co. boosted its position in shares of PepsiCo by 45.5% during the second quarter. Sei Investments Co. now owns 536,133 shares of the company’s stock valued at $70,789,000 after purchasing an additional 167,707 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors.
PepsiCo News Roundup
Here are the key news stories impacting PepsiCo this week:
- Positive Sentiment: PepsiCo extended and revised its licensing and bottling arrangements with Varun Beverages in India through 2049, while also giving the partner more freedom to pursue non-PepsiCo ventures. The longer-term deal should help protect distribution in a key growth market and reduce partnership uncertainty. Varun Beverages, PepsiCo revise licencing deal
- Positive Sentiment: PepsiCo is also being highlighted by market commentary as a strong growth stock and a defensive blue-chip income name, reinforcing investor interest in the company’s earnings stability and dividend profile. Here’s Why PepsiCo (PEP) is a Strong Growth Stock
- Neutral Sentiment: PepsiCo launched new products and initiatives, including a functional ready-to-drink tea and a greenhouse program in Asia-Pacific, which support its innovation story but are unlikely to move the stock on their own. PepsiCo adds functional RTD tea
- Neutral Sentiment: The company is also moving ahead with sustainability and regenerative agriculture efforts, which may help long-term brand positioning but are not immediate earnings catalysts. PepsiCo enters regen ag pact with LDC
- Negative Sentiment: Industry coverage continues to flag margin pressure from higher sugar, packaging and freight costs, along with tariff uncertainty. That backdrop could weigh on profitability for PepsiCo and other soft drink makers if costs stay elevated. 5 Soft Drinks Stocks to Track Amid Margin & Tariff Pressures
- Negative Sentiment: PepsiCo said it will raise prices on some smaller chip bags to offset increased costs. While this may help margins, it can also pressure volume and suggests inflation remains a headwind. Lay’s and Doritos maker to raise prices on small bags of chips
PepsiCo Trading Up 1.2%
PepsiCo (NASDAQ:PEP – Get Free Report) last released its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. During the same period in the previous year, the company posted $1.48 earnings per share. The company’s revenue for the quarter was up 8.5% compared to the same quarter last year. As a group, equities analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.
PepsiCo declared that its board has authorized a stock buyback program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to buy up to 4.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.
PepsiCo Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be paid a $1.48 dividend. This is an increase from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Friday, June 5th. PepsiCo’s dividend payout ratio (DPR) is presently 89.32%.
Wall Street Analyst Weigh In
Several research firms recently weighed in on PEP. Morgan Stanley lifted their price target on PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft lifted their price target on PepsiCo from $169.00 to $173.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Wall Street Zen downgraded PepsiCo from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Wednesday, April 8th. Finally, BNP Paribas Exane boosted their target price on PepsiCo from $191.00 to $195.00 and gave the stock an “outperform” rating in a report on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $170.11.
View Our Latest Stock Analysis on PepsiCo
PepsiCo Company Profile
PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.
Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.
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