Coldstream Capital Management Inc. Acquires 26,326 Shares of PepsiCo, Inc. $PEP

Key Points

• Coldstream Capital Management boosted its PepsiCo stake by 79.6% in the fourth quarter, buying 26,326 additional shares and bringing its total holdings to 59,388 shares valued at about $8.5 million.
• PepsiCo reported strong quarterly results, with EPS of $1.61 beating estimates and revenue of $19.44 billion topping forecasts, while also guiding for full-year EPS of 8.63.
• The company is supporting shareholder returns with a new $10 billion buyback program and a higher quarterly dividend of $1.48 per share, equal to an annualized yield of about 3.9%.

Coldstream Capital Management Inc. grew its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 79.6% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 59,388 shares of the company's stock after buying an additional 26,326 shares during the quarter. Coldstream Capital Management Inc.'s holdings in PepsiCo were worth $8,523,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Life Cycle Investment Partners Ltd bought a new stake in PepsiCo during the 4th quarter worth about $71,240,000. Pathfinder Wealth Consulting Inc. bought a new stake in shares of PepsiCo in the 4th quarter valued at about $203,000. Buckhead Capital Management LLC raised its holdings in shares of PepsiCo by 2.5% in the 4th quarter. Buckhead Capital Management LLC now owns 37,437 shares of the company's stock valued at $5,373,000 after purchasing an additional 929 shares during the period. Jefferies Financial Group Inc. raised its holdings in shares of PepsiCo by 7,511.9% in the 4th quarter. Jefferies Financial Group Inc. now owns 355,172 shares of the company's stock valued at $50,974,000 after purchasing an additional 350,506 shares during the period. Finally, White Lighthouse Investment Management Inc. raised its holdings in shares of PepsiCo by 9.8% in the 4th quarter. White Lighthouse Investment Management Inc. now owns 1,878 shares of the company's stock valued at $269,000 after purchasing an additional 167 shares during the period. 73.07% of the stock is owned by institutional investors.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo extended and revised its licensing and bottling arrangements with Varun Beverages in India through 2049, while also giving the partner more freedom to pursue non-PepsiCo ventures. The longer-term deal should help protect distribution in a key growth market and reduce partnership uncertainty. Varun Beverages, PepsiCo revise licencing deal
• Positive Sentiment: PepsiCo is also being highlighted by market commentary as a strong growth stock and a defensive blue-chip income name, reinforcing investor interest in the company’s earnings stability and dividend profile. Here's Why PepsiCo (PEP) is a Strong Growth Stock
• Neutral Sentiment: PepsiCo launched new products and initiatives, including a functional ready-to-drink tea and a greenhouse program in Asia-Pacific, which support its innovation story but are unlikely to move the stock on their own. PepsiCo adds functional RTD tea
• Neutral Sentiment: The company is also moving ahead with sustainability and regenerative agriculture efforts, which may help long-term brand positioning but are not immediate earnings catalysts. PepsiCo enters regen ag pact with LDC
• Negative Sentiment: Industry coverage continues to flag margin pressure from higher sugar, packaging and freight costs, along with tariff uncertainty. That backdrop could weigh on profitability for PepsiCo and other soft drink makers if costs stay elevated. 5 Soft Drinks Stocks to Track Amid Margin & Tariff Pressures
• Negative Sentiment: PepsiCo said it will raise prices on some smaller chip bags to offset increased costs. While this may help margins, it can also pressure volume and suggests inflation remains a headwind. Lay’s and Doritos maker to raise prices on small bags of chips

Analyst Ratings Changes

PEP has been the topic of a number of research analyst reports. HSBC upped their target price on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a report on Friday, April 17th. TD Cowen upped their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a report on Friday, February 20th. JPMorgan Chase & Co. upped their target price on shares of PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Argus raised shares of PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Finally, Morgan Stanley upped their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, PepsiCo presently has an average rating of "Hold" and an average target price of $170.11.

PepsiCo Stock Up 1.2%

Shares of PEP opened at $150.57 on Friday. The firm's 50-day simple moving average is $154.17 and its 200 day simple moving average is $152.45. PepsiCo, Inc. has a 52 week low of $127.60 and a 52 week high of $171.48. The firm has a market cap of $205.79 billion, a P/E ratio of 23.64, a price-to-earnings-growth ratio of 2.73 and a beta of 0.38. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the prior year, the business posted $1.48 EPS. The business's revenue was up 8.5% compared to the same quarter last year. On average, analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo declared that its Board of Directors has initiated a share buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to buy up to 4.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be given a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Friday, June 5th. This is a boost from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

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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