Adams Diversified Equity Fund Inc. Sells 9,224 Shares of PepsiCo, Inc. $PEP

Key Points

• Adams Diversified Equity Fund cut its PepsiCo stake by 19.3% in the fourth quarter, selling 9,224 shares and leaving it with 38,576 shares worth about $5.5 million.
• Despite some mixed analyst moves, PepsiCo’s overall rating remains Hold, with a consensus price target of $167.35. Several firms recently trimmed targets, including TD Cowen and Piper Sandler, signaling more cautious near-term sentiment.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 and revenue of $19.44 billion, and it also raised its quarterly dividend to $1.48 per share, implying a 4.1% annual yield.

Adams Diversified Equity Fund Inc. lowered its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 19.3% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 38,576 shares of the company's stock after selling 9,224 shares during the period. Adams Diversified Equity Fund Inc.'s holdings in PepsiCo were worth $5,536,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of PepsiCo by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares in the last quarter. State Street Corp increased its stake in shares of PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of PepsiCo by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of PepsiCo by 1.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after acquiring an additional 295,955 shares in the last quarter. Finally, Norges Bank bought a new position in shares of PepsiCo in the 4th quarter worth about $3,018,813,000. Institutional investors own 73.07% of the company's stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo NASDAQ: PEP Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

Analysts Set New Price Targets

Several brokerages recently issued reports on PEP. Argus upgraded shares of PepsiCo to a "hold" rating in a research note on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft lifted their price target on PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Barclays lifted their price target on PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Wells Fargo & Company lowered their price target on PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Finally, BNP Paribas Exane lifted their price target on PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a research report on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $167.35.

PepsiCo Trading Up 0.4%

PepsiCo stock opened at $144.27 on Friday. The business has a 50-day simple moving average of $151.11 and a two-hundred day simple moving average of $152.37. The company has a market cap of $197.18 billion, a P/E ratio of 22.65, a P/E/G ratio of 2.61 and a beta of 0.35. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $171.48. 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 (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.48 EPS. Analysts predict that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The company also recently declared 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 represents a $5.92 dividend on an annualized basis and a dividend yield of 4.1%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio is presently 92.94%.

PepsiCo 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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