Conning Inc. Acquires 21,775 Shares of PepsiCo, Inc. $PEP

Key Points

• Conning increased its PepsiCo stake by 8.3% in the third quarter, purchasing 21,775 shares to bring its holdings to 285,639 shares valued at approximately $36.2 million. Institutional investors collectively own 73.07% of PepsiCo.
• PepsiCo’s latest quarterly results exceeded expectations, with adjusted earnings of $2.34 per share and revenue of $25.27 billion, up 5.6% year over year. Shares opened at $132.63, near the lower end of their 12-month range.
• North American weakness remains the main concern, driven by stagnant demand, consumer pressure and elevated costs, prompting a business reset and activist scrutiny. Analysts have a consensus “Hold” rating with an average price target of $143.28.

Conning Inc. grew its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 8.3% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 285,639 shares of the company's stock after buying an additional 21,775 shares during the period. Conning Inc.'s holdings in PepsiCo were worth $36,196,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. BlackRock Inc. grew its position in PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock worth $16,015,363,000 after acquiring an additional 2,440,377 shares in the last quarter. State Street Corp increased its stake in PepsiCo by 1.7% during the second quarter. State Street Corp now owns 60,406,932 shares of the company's stock worth $8,179,099,000 after acquiring an additional 987,582 shares during the last quarter. Bank of America Corp DE increased its stake in PepsiCo by 0.6% during the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock worth $3,305,146,000 after acquiring an additional 133,325 shares during the last quarter. Amundi raised its position in PepsiCo by 16.8% during the first quarter. Amundi now owns 11,444,671 shares of the company's stock valued at $1,777,243,000 after purchasing an additional 1,647,506 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in PepsiCo by 4.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company's stock valued at $1,600,114,000 after purchasing an additional 549,336 shares during the period. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Stock Performance

Shares of NASDAQ:PEP opened at $132.63 on Thursday. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90. PepsiCo, Inc. has a 12 month low of $123.47 and a 12 month high of $171.48. The company has a market capitalization of $180.74 billion, a price-to-earnings ratio of 16.66, a PEG ratio of 4.06 and a beta of 0.35. The firm's 50-day moving average is $133.76 and its 200 day moving average is $145.93.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business had revenue of $25.27 billion during the quarter, compared to the consensus estimate of $24.95 billion. During the same quarter last year, the firm earned $2.29 earnings per share. The firm's quarterly revenue was up 5.6% compared to the same quarter last year. Research analysts predict that PepsiCo, Inc. will post 8.39 EPS for the current year.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s discounted valuation and dividend yield of approximately 4.3% could support a recovery. Analysts at Morningstar reportedly see greater upside in PepsiCo than Coca-Cola because of the lower valuation and potential for an operational rebound. Coca-Cola Vs. PepsiCo: Which Beverage Giant Offers Stronger Upside After Q3 Earnings?
• Positive Sentiment: The company is pursuing a North American reset centered on cost reductions, renewed brand investment and portfolio innovation. Successful execution could improve margins and revive growth. Its long-running dividend increases also reinforce PepsiCo’s appeal to defensive-income investors. PepsiCo's North America Reset: Can Cost Cuts Restore Growth?
• Positive Sentiment: Taco Bell is maintaining its relationship with PepsiCo and Mountain Dew, including Baja Blast, preserving an important restaurant-channel partnership. PepsiCo is also working with Grimme on virtual potato-harvesting technology designed to protect quality and reduce waste.
• Neutral Sentiment: Commentary emphasizes that PepsiCo’s brands and staple products tend to remain resilient during economic slowdowns, but dividend reliability and long-term growth prospects vary across beverage companies. Coca-Cola has delivered stronger recent share-price performance despite PepsiCo’s higher yield. 3 Beverage Stocks With Dependable Brands
• Negative Sentiment: North America remains the central problem: stagnant demand, consumer pressure and elevated costs have prompted the reset. An activist investor’s involvement adds pressure for faster operational improvement and could increase uncertainty around strategy. PepsiCo Hasn't Been This Cheap Relative to Earnings
• Negative Sentiment: Reports of an ₹8,000 payout related to a Lay’s packet-weight dispute create a minor legal and reputational overhang, while KFC’s decision to drop Pepsi signals some restaurant-channel weakness.

Insider Activity at PepsiCo

In related news, CEO Ramon Laguarta sold 30,000 shares of the business's stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the completion of the transaction, the chief executive officer owned 491,645 shares in the company, valued at $66,435,988.85. The trade was a 5.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Robert C. Pohlad acquired 184,646 shares of the company's stock in a transaction that occurred on Wednesday, October 14th. The shares were acquired at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the acquisition, the director owned 433,009 shares in the company, valued at $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.12% of the company's stock.

Analyst Upgrades and Downgrades

PEP has been the subject of several analyst reports. Barclays lowered their price objective on PepsiCo from $133.00 to $126.00 and set an "equal weight" rating for the company in a research note on Monday, October 12th. Piper Sandler cut their target price on PepsiCo from $176.00 to $140.00 and set an "overweight" rating on the stock in a research report on Friday, October 9th. The Goldman Sachs Group restated a "buy" rating and set a $165.00 price target on shares of PepsiCo in a report on Thursday, October 8th. BNP Paribas Exane lowered their price target on PepsiCo from $161.00 to $157.00 and set an "outperform" rating for the company in a research report on Friday, October 9th. Finally, Evercore lowered their price target on PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $143.28.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

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