360,436 Shares in PepsiCo, Inc. $PEP Bought by Capital World Investors

Key Points

• Capital World Investors initiated a new position in PepsiCo, buying 360,436 shares worth about $51.7 million in the fourth quarter.
• Several other institutional investors also adjusted their PepsiCo holdings, and hedge funds now own 73.07% of the company’s stock.
• PepsiCo reported quarterly EPS of $1.61, topping estimates, and increased its quarterly dividend to $1.48 per share, implying a 4.1% yield.

Capital World Investors bought a new position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 360,436 shares of the company's stock, valued at approximately $51,730,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Cypress Capital Management LLC WY raised its stake in PepsiCo by 8.3% in the 4th quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock worth $121,000 after acquiring an additional 64 shares during the last quarter. United Bank raised its stake in PepsiCo by 3.9% in the 4th quarter. United Bank now owns 1,717 shares of the company's stock worth $246,000 after acquiring an additional 65 shares during the last quarter. Koa Wealth Management LLC raised its stake in PepsiCo by 0.9% in the 4th quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock worth $1,149,000 after acquiring an additional 68 shares during the last quarter. Tiemann Investment Advisors LLC raised its stake in PepsiCo by 4.0% in the 3rd quarter. Tiemann Investment Advisors LLC now owns 1,807 shares of the company's stock worth $254,000 after acquiring an additional 70 shares during the last quarter. Finally, Leisure Capital Management raised its stake in shares of PepsiCo by 0.6% during the 3rd quarter. Leisure Capital Management now owns 11,578 shares of the company's stock valued at $1,626,000 after buying an additional 71 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. The Goldman Sachs Group lifted their price objective on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Deutsche Bank Aktiengesellschaft lifted their price objective on PepsiCo from $169.00 to $173.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Argus upgraded PepsiCo to a "hold" rating in a research note on Tuesday, February 17th. Evercore lifted their price objective on PepsiCo from $165.00 to $170.00 in a research note on Friday, April 17th. Finally, Piper Sandler lifted their price objective on PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a research note on Thursday, March 12th. Eight equities research 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, PepsiCo has a consensus rating of "Hold" and a consensus price target of $169.58.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo and Gatik launched a commercial driverless trucking deployment across Texas, Arizona, and Arkansas, signaling potential supply-chain and cost-efficiency benefits. PepsiCo and Gatik launch commercial driverless trucking deployment
• Positive Sentiment: Coverage of PepsiCo’s 41 fully driverless delivery trucks highlighted the company’s progress in autonomous logistics and helped boost investor sentiment. Driverless Trucks Are Here—and They're Delivering Bags of Doritos
• Neutral Sentiment: Some market commentary suggested PepsiCo may be worth reconsidering after its recent pullback, reflecting a valuation debate rather than a clear new catalyst. Is It Time To Reconsider PepsiCo (PEP) After The Recent 9% Share Price Pullback

PepsiCo Trading Up 1.5%

PEP opened at $142.78 on Wednesday. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The stock has a market capitalization of $195.15 billion, a PE ratio of 22.41, a P/E/G ratio of 2.55 and a beta of 0.35. The business's 50 day moving average price is $151.80 and its 200 day moving average price is $152.45. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same period in the prior year, the firm posted $1.48 earnings per share. The firm's quarterly revenue was up 8.5% on a year-over-year basis. As a group, equities research analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a $1.48 dividend. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date is Friday, June 5th. PepsiCo's payout ratio is currently 92.94%.

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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