Arrowstreet Capital Limited Partnership Reduces Holdings in PepsiCo, Inc. $PEP

Key Points

• Arrowstreet Capital reduced its PepsiCo stake by 8.6% in the fourth quarter, selling 380,932 shares and leaving it with 4,025,027 shares valued at about $577.7 million.
• PepsiCo recently beat quarterly expectations, reporting EPS of $1.61 on revenue of $19.44 billion, while also raising its quarterly dividend to $1.48 per share for a 4.1% annualized yield.
• Analyst sentiment appears more cautious overall, with several firms trimming price targets; the stock currently carries a consensus Hold rating and an average price target of $167.35.

Arrowstreet Capital Limited Partnership trimmed its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 8.6% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 4,025,027 shares of the company's stock after selling 380,932 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.29% of PepsiCo worth $577,672,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. Cypress Capital Management LLC WY boosted its stake in PepsiCo by 8.3% during the fourth quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock worth $121,000 after buying an additional 64 shares during the period. United Bank boosted its stake in PepsiCo by 3.9% during the fourth quarter. United Bank now owns 1,717 shares of the company's stock worth $246,000 after buying an additional 65 shares during the period. Koa Wealth Management LLC boosted its stake in PepsiCo by 0.9% during the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock worth $1,149,000 after buying an additional 68 shares during the period. Pettinga Financial Advisors LLC boosted its stake in PepsiCo by 3.8% during the fourth quarter. Pettinga Financial Advisors LLC now owns 1,880 shares of the company's stock worth $270,000 after buying an additional 68 shares during the period. Finally, Tiemann Investment Advisors LLC boosted its stake in PepsiCo by 4.0% during the third quarter. Tiemann Investment Advisors LLC now owns 1,807 shares of the company's stock worth $254,000 after buying an additional 70 shares during the period. 73.07% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about 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

PepsiCo Stock Performance

PEP stock opened at $144.27 on Friday. The business has a 50-day moving average price of $151.11 and a 200 day moving average price of $152.37. PepsiCo, Inc. has a 1-year low of $127.60 and a 1-year high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company has a market capitalization of $197.18 billion, a P/E ratio of 22.65, a PEG ratio of 2.61 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating 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 company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the previous year, the firm earned $1.48 earnings per share. The firm's quarterly revenue was up 8.5% compared to the same quarter last year. As a group, equities research analysts forecast that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo Increases Dividend

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

Analyst Ratings Changes

PEP has been the subject of several research analyst reports. The Goldman Sachs Group lifted their target price on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. Wells Fargo & Company decreased their target price 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. Piper Sandler decreased their target price on PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a research report on Friday. Finally, Wall Street Zen downgraded PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $167.35.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.