Capricorn Fund Managers Ltd Has $8.31 Million Stock Position in PepsiCo, Inc. $PEP

Key Points

• Capricorn Fund Managers Ltd more than doubled its PepsiCo stake in the first quarter, buying 27,364 additional shares to bring its total to 53,530 shares worth about $8.31 million.
• Several headlines around PepsiCo are leaning positive, including bullish analyst commentary, heavy call-option buying, and the company’s new manufacturing facility in India, which could support future growth.
• PepsiCo recently beat quarterly earnings and revenue estimates and raised its dividend to $1.48 per share, though the stock was trading down and analysts currently rate it a consensus Hold.

Capricorn Fund Managers Ltd increased its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 104.6% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 53,530 shares of the company's stock after buying an additional 27,364 shares during the period. PepsiCo accounts for approximately 1.3% of Capricorn Fund Managers Ltd's investment portfolio, making the stock its 27th biggest position. Capricorn Fund Managers Ltd's holdings in PepsiCo were worth $8,313,000 at the end of the most recent reporting period.

A number of other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased 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 worth $19,875,205,000 after acquiring an additional 1,612,652 shares during the last quarter. State Street Corp boosted its position in PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after purchasing an additional 1,079,970 shares during the period. Auto Owners Insurance Co increased its holdings in shares of PepsiCo by 14,857.8% in 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 purchasing an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock valued at $4,814,835,000 after purchasing an additional 360,936 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of PepsiCo by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock valued at $4,031,646,000 after purchasing an additional 295,955 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investor sentiment was lifted by bullish commentary from 24/7 Wall St., which argued PepsiCo could have more than 20% upside based on a price target above current levels and called the stock a buy. Pepsi Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: Unusual options activity pointed to rising trader interest, with investors buying a large volume of PepsiCo call options, often interpreted as a bullish signal. Investors Buy Large Volume of PepsiCo Call Options NASDAQ: PEP
• Positive Sentiment: PepsiCo expanded its manufacturing footprint in India by commissioning a second flavor plant in Ujjain, a long-term growth investment that could support supply and regional demand. PepsiCo India opens ₹1,266 cr flavour manufacturing facility in Ujjain
• Neutral Sentiment: Analysts are heading into PepsiCo’s July 9 earnings release expecting higher Q2 earnings and revenue, but this is still a forecast rather than a reported result. PepsiCo Likely To Report Higher Q2 Earnings
• Neutral Sentiment: PepsiCo is also facing a trademark dispute involving “Rise” and “Mtn Dew Rise” at the U.S. Supreme Court, which adds legal uncertainty but is not yet a confirmed financial hit. US Supreme Court takes up Pepsi 'Mtn Dew Rise' trademark dispute
• Negative Sentiment: Competition in the soda market remains intense, with Coca-Cola highlighted as having a Freestyle-machine advantage and launching an exclusive new soda flavor at Wingstop, underscoring pressure on PepsiCo’s beverage business. Coca-Cola launches exclusive soda flavor at fast-food giant

Analyst Ratings Changes

PEP has been the subject of several research analyst reports. 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. The Goldman Sachs Group raised their price objective on shares of PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. HSBC upped their target price on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research report on Friday, April 17th. Piper Sandler dropped their price target on PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a report on Friday, June 12th. Finally, Royal Bank Of Canada reduced their price target on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research note on Thursday, April 9th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, PepsiCo currently has a consensus rating of "Hold" and an average target price of $166.85.

PepsiCo Trading Down 2.4%

Shares of NASDAQ:PEP opened at $135.40 on Wednesday. The business's 50 day simple moving average is $147.56 and its 200 day simple moving average is $151.91. PepsiCo, Inc. has a 1 year low of $132.47 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 $185.06 billion, a P/E ratio of 21.26, a P/E/G ratio of 2.80 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. During the same period in the prior year, the company posted $1.48 EPS. The company's revenue was up 8.5% compared to the same quarter last year. On average, research analysts anticipate that PepsiCo, Inc. will post 8.62 EPS for the current fiscal year.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were issued a $1.48 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $5.92 annualized dividend and a yield of 4.4%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is 92.94%.

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.

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.