Chevy Chase Trust Holdings LLC Lowers Position in PepsiCo, Inc. $PEP

Key Points

• Chevy Chase Trust cut its PepsiCo stake by 4% in Q3, selling 34,479 shares and now holds 835,248 shares (about 0.06%) valued at roughly $117.3 million.
• PepsiCo modestly beat quarterly expectations (EPS $2.26 vs. $2.24; revenue $29.34B, +5.6% YoY), declared a quarterly dividend of $1.4225 ($5.69 annualized, 3.6% yield) and authorized a $10 billion share buyback (up to ~4.7% of shares).
• Wall Street is mixed: the consensus rating is “Hold” with a $169 price target, though several firms (including Citigroup and JPMorgan) have raised targets and issued more bullish ratings.

Chevy Chase Trust Holdings LLC reduced its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 4.0% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 835,248 shares of the company's stock after selling 34,479 shares during the period. Chevy Chase Trust Holdings LLC owned approximately 0.06% of PepsiCo worth $117,302,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of PepsiCo by 12.4% in the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock valued at $9,031,000 after buying an additional 6,574 shares during the period. Caxton Associates LLP acquired a new position in PepsiCo during the first quarter worth $251,000. Sivia Capital Partners LLC raised its position in PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock worth $862,000 after acquiring an additional 3,790 shares in the last quarter. Schnieders Capital Management LLC. lifted its stake in shares of PepsiCo by 10.1% in the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after purchasing an additional 3,502 shares during the period. Finally, Banco Bilbao Vizcaya Argentaria S.A. increased its holdings in PepsiCo by 29.6% in the second quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 109,162 shares of the company's stock valued at $14,402,000 after buying an additional 24,964 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

NASDAQ PEP opened at $159.88 on Friday. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 2.06. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The business has a fifty day moving average of $156.71 and a 200-day moving average of $149.69. The stock has a market cap of $218.50 billion, a price-to-earnings ratio of 26.65, a price-to-earnings-growth ratio of 3.07 and a beta of 0.39.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Monday, February 2nd. The company reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $2.24 by $0.02. The business had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.96 earnings per share. As a group, analysts predict that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be paid a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is currently 94.83%.

PepsiCo declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, February 3rd that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 4.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

PEP has been the subject of a number of research reports. Citigroup lifted their price target on shares of PepsiCo from $170.00 to $182.00 and gave the company a "buy" rating in a research report on Wednesday, February 4th. BNP Paribas Exane restated an "outperform" rating on shares of PepsiCo in a research report on Wednesday, February 4th. Rothschild & Co Redburn boosted their price objective on shares of PepsiCo from $120.00 to $130.00 and gave the stock a "sell" rating in a research report on Tuesday, February 10th. Wall Street Zen raised shares of PepsiCo from a "hold" rating to a "buy" rating in a research note on Saturday, March 7th. Finally, JPMorgan Chase & Co. lifted their target price on shares of PepsiCo from $164.00 to $176.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, PepsiCo has an average rating of "Hold" and a consensus price target of $169.00.

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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