Bank of Nova Scotia Sells 134,729 Shares of PepsiCo, Inc. $PEP

Key Points

• Bank of Nova Scotia cut its PepsiCo stake by 12.5% in the first quarter, selling 134,729 shares and leaving it with 943,071 shares valued at about $146.45 million.
• PepsiCo reported solid quarterly results, posting EPS of $2.20 and revenue of $24.18 billion, both slightly ahead of analyst expectations, with revenue up 6.4% year over year.
• The company declared a quarterly dividend of $1.48 per share, equal to an annualized yield of 4.4%, while analysts currently rate the stock a consensus “Hold” with a $157.90 price target.

Bank of Nova Scotia lessened its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 12.5% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 943,071 shares of the company's stock after selling 134,729 shares during the period. Bank of Nova Scotia owned 0.07% of PepsiCo worth $146,450,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in PEP. Vanguard Group Inc. raised 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 boosted its stake in PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co grew its position in PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after acquiring an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of PepsiCo by 1.1% during the fourth 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. Finally, Charles Schwab Investment Management Inc. lifted its holdings 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 during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Trading Down 0.5%

Shares of PEP opened at $134.95 on Friday. The stock has a market capitalization of $184.19 billion, a P/E ratio of 17.69, a PEG ratio of 2.98 and a beta of 0.36. PepsiCo, Inc. has a twelve month low of $133.73 and a twelve month high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The firm has a fifty day simple moving average of $142.36 and a two-hundred day simple moving average of $151.03.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.19 by $0.01. The firm had revenue of $24.18 billion for the quarter, compared to analysts' expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company's revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts anticipate that PepsiCo, Inc. will post 8.58 EPS for the current year.

PepsiCo Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. BNP Paribas Exane reduced their target price on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a report on Wednesday, July 8th. Citigroup downgraded shares of PepsiCo from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $170.00 to $145.00 in a research note on Friday, July 10th. The Goldman Sachs Group raised 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. Morgan Stanley decreased their price objective on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Finally, UBS Group set a $159.00 target price on PepsiCo in a research note on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $157.90.

About PepsiCo

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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