Arrowstreet Capital Limited Partnership Sells 924,577 Shares of PepsiCo, Inc. $PEP

Key Points

• Arrowstreet Capital reduced its PepsiCo stake by 23.0% in the first quarter, selling 924,577 shares and ending with 3.1 million shares valued at about $481.5 million.
• PepsiCo’s latest quarterly results beat expectations, with EPS of $2.20 versus $2.19 expected and revenue of $24.18 billion, up 6.4% year over year.
• Dividend and analyst outlook: PepsiCo declared a $1.48 quarterly dividend, yielding 4.4% annually, while analysts currently rate the stock a consensus Hold with an average target price of $157.90.

Arrowstreet Capital Limited Partnership trimmed its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 23.0% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 3,100,450 shares of the company's stock after selling 924,577 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.23% of PepsiCo worth $481,469,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Evergreen Advisors LLC acquired a new position in PepsiCo during the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of PepsiCo during the 4th quarter worth approximately $26,000. Swiss RE Ltd. bought a new stake in shares of PepsiCo during the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in shares of PepsiCo in the 4th quarter valued at approximately $29,000. Finally, Imprint Wealth LLC bought a new position in shares of PepsiCo in the third quarter valued at $31,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Price Performance

Shares of PEP opened at $134.95 on Friday. The company's 50-day moving average is $142.36 and its 200-day moving average is $151.03. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The firm has a market capitalization of $184.19 billion, a PE ratio of 17.69, a PEG ratio of 2.98 and a beta of 0.36. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the previous year, the firm posted $0.92 EPS. PepsiCo's revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities analysts forecast that PepsiCo, Inc. will post 8.58 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's payout ratio is 77.59%.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on PEP shares. Rothschild & Co Redburn boosted their target price on shares of PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Royal Bank Of Canada decreased their price objective on shares of PepsiCo from $163.00 to $161.00 and set a "sector perform" rating for the company in a research report on Friday, July 10th. Citigroup lowered shares of PepsiCo from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $170.00 to $145.00 in a research note on Friday, July 10th. Morgan Stanley dropped their target price on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research note on Monday, July 6th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $157.90.

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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