Morningstar Investment Management LLC cut its stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 40.9% during the 4th quarter, Holdings Channel.com reports. The firm owned 63,448 shares of the company’s stock after selling 43,886 shares during the period. Morningstar Investment Management LLC’s holdings in PepsiCo were worth $9,106,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other large investors also recently modified their holdings of PEP. United Bank grew its stake in shares of PepsiCo by 3.9% in the fourth quarter. United Bank now owns 1,717 shares of the company’s stock valued at $246,000 after acquiring an additional 65 shares in the last quarter. Koa Wealth Management LLC grew its stake in shares of PepsiCo by 0.9% in the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company’s stock valued at $1,149,000 after acquiring an additional 68 shares in the last quarter. Delta Asset Management LLC TN grew its stake in shares of PepsiCo by 0.6% in the third quarter. Delta Asset Management LLC TN now owns 11,000 shares of the company’s stock valued at $1,545,000 after acquiring an additional 70 shares in the last quarter. Westside Investment Management Inc. grew its stake in shares of PepsiCo by 2.8% in the third quarter. Westside Investment Management Inc. now owns 2,602 shares of the company’s stock valued at $366,000 after acquiring an additional 70 shares in the last quarter. Finally, Tiemann Investment Advisors LLC grew its stake in shares of PepsiCo by 4.0% in the third quarter. Tiemann Investment Advisors LLC now owns 1,807 shares of the company’s stock valued at $254,000 after acquiring an additional 70 shares in the last quarter. 73.07% of the stock is owned by institutional investors.
Wall Street Analysts Forecast Growth
PEP has been the topic of several research reports. Argus upgraded shares of PepsiCo to a “hold” rating in a research note on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft upped their price target on shares of PepsiCo from $169.00 to $173.00 and gave the company a “buy” rating in a research note on Friday, April 17th. Wall Street Zen downgraded shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Saturday, April 18th. Barclays upped their price target on shares of PepsiCo from $154.00 to $158.00 and gave the company an “equal weight” rating in a research note on Monday, April 20th. Finally, TD Cowen upped their price target on shares of PepsiCo from $162.00 to $165.00 and gave the company a “hold” rating in a research note on Friday, February 20th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $170.11.
PepsiCo Stock Performance
Shares of PepsiCo stock opened at $150.57 on Monday. The company has a market capitalization of $205.79 billion, a price-to-earnings ratio of 23.64, a PEG ratio of 2.73 and a beta of 0.38. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The firm’s 50-day moving average price is $154.17 and its two-hundred day moving average price is $152.52.
PepsiCo (NASDAQ:PEP – Get Free Report) last announced its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.55 by $0.06. The firm had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business’s revenue for the quarter was up 8.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.48 earnings per share. On average, analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.
PepsiCo Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be paid a dividend of $1.48 per share. The ex-dividend date is Friday, June 5th. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 3.9%. PepsiCo’s dividend payout ratio is currently 89.32%.
PepsiCo declared that its board has approved a share repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 4.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.
Key Stories Impacting PepsiCo
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 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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