Candriam S.C.A. Sells 23,925 Shares of PepsiCo, Inc. $PEP

Key Points

• Candriam S.C.A. cut its PepsiCo stake by 13.6% in the first quarter, selling 23,925 shares and leaving it with 152,430 shares valued at about $23.7 million.
• PepsiCo reported better-than-expected Q2 results, posting earnings of $2.20 per share on revenue of $24.18 billion, and reaffirmed its full-year guidance.
• The company also raised its quarterly dividend to $1.48 per share, while analysts remain cautious overall, with several lowering price targets and the consensus rating staying at “Hold.”

Candriam S.C.A. trimmed its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 13.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 152,430 shares of the company's stock after selling 23,925 shares during the period. Candriam S.C.A.'s holdings in PepsiCo were worth $23,671,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of PEP. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of PepsiCo during the 4th quarter worth approximately $26,000. Swiss RE Ltd. acquired a new stake in PepsiCo in the 4th quarter valued at about $28,000. MH & Associates Securities Management Corp ADV bought a new position in PepsiCo during the fourth quarter worth about $29,000. Imprint Wealth LLC bought a new stake in PepsiCo in the third quarter valued at approximately $31,000. Finally, Networth Advisors LLC raised its stake in PepsiCo by 2,857.1% in the 1st quarter. Networth Advisors LLC now owns 207 shares of the company's stock valued at $32,000 after acquiring an additional 200 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo Price Performance

PEP stock traded down $0.48 during mid-day trading on Friday, hitting $137.38. The stock had a trading volume of 9,071,253 shares, compared to its average volume of 9,517,085. The company has a current ratio of 0.93, a quick ratio of 0.72 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a 52 week low of $133.75 and a 52 week high of $171.48. The firm has a market capitalization of $187.77 billion, a P/E ratio of 18.01, a P/E/G ratio of 2.77 and a beta of 0.36. The firm has a fifty day simple moving average of $145.42 and a 200 day simple moving average of $151.46.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping analysts' consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm's quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, research analysts forecast that PepsiCo, Inc. will post 8.59 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th were paid a $1.48 dividend. This represents a $5.92 annualized dividend and a dividend yield of 4.3%. The ex-dividend date was Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio is 92.94%.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s Q2 revenue topped Wall Street estimates, supported by stronger international growth and improved volumes in some markets.
• Positive Sentiment: The company reaffirmed its full-year guidance, which can help reassure investors that the turnaround plan is still on track.
• Positive Sentiment: PepsiCo’s long dividend track record remains a draw for income investors, with the company continuing its streak of annual increases.
• Neutral Sentiment: Several firms, including RBC, TD Cowen, Wells Fargo, Citi, and others, lowered price targets after the report, but most still kept neutral or hold-type ratings. Citi Analyst Downgrades PepsiCo Stock (PEP) Despite Q2 Beat, Slashes Target by 15%
• Neutral Sentiment: Analysts remain split between PepsiCo’s dividend/stability appeal and concerns about valuation, margin pressure, and a slow U.S. recovery. PepsiCo’s $200 Billion Stability Play Is Attracting Dividend Investors
• Negative Sentiment: Investors are worried that soft North American snack and beverage demand, plus higher commodity and fuel costs, could keep earnings momentum muted.
• Negative Sentiment: Media coverage compared PepsiCo unfavorably with Coca-Cola, highlighting market-share pressure and a more difficult turnaround narrative for PEP shares.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Bank of America reduced their target price on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a report on Thursday, June 25th. Citigroup lowered PepsiCo from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $170.00 to $145.00 in a report on Friday. Royal Bank Of Canada reduced their target price 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. HSBC boosted their price objective on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a report on Friday, April 17th. Finally, TD Cowen lowered their target price on shares of PepsiCo from $150.00 to $145.00 and set a "hold" rating on the stock in a report on Friday. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, PepsiCo currently has a consensus rating of "Hold" and a consensus target price of $157.70.

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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