Fairtree Asset Management Pty Ltd Invests $1.04 Million in PepsiCo, Inc. $PEP

Key Points

• Fairtree Asset Management opened a new position in PepsiCo, buying 7,214 shares valued at about $1.04 million in the fourth quarter.
• PepsiCo reported strong quarterly results, with EPS of $1.61 beating estimates and revenue of $19.44 billion topping forecasts, while revenue rose 8.5% year over year.
• The company also raised its dividend to $1.48 per share quarterly and authorized a $10 billion share buyback, signaling confidence in its capital return strategy.

Fairtree Asset Management Pty Ltd bought a new stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 7,214 shares of the company's stock, valued at approximately $1,035,000.

A number of other hedge funds have also bought and sold shares of PEP. MH & Associates Securities Management Corp ADV bought a new position in shares of PepsiCo during the fourth quarter worth approximately $29,000. Imprint Wealth LLC acquired a new stake in PepsiCo during the third quarter worth approximately $31,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in PepsiCo during the 4th quarter worth $33,000. Strategic Advocates LLC bought a new position in PepsiCo during the 3rd quarter worth $33,000. Finally, Highline Wealth Partners LLC raised its holdings in PepsiCo by 56.3% in the 4th quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock valued at $36,000 after acquiring an additional 90 shares in the last quarter. 73.07% of the stock is owned by institutional investors.

PepsiCo Stock Performance

NASDAQ:PEP opened at $150.37 on Wednesday. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $171.48. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The stock's 50-day simple moving average is $154.84 and its 200 day simple moving average is $152.44. The firm has a market capitalization of $205.52 billion, a PE ratio of 23.61, a price-to-earnings-growth ratio of 2.70 and a beta of 0.38.

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

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

PepsiCo Increases Dividend

The business 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 $1.48 dividend. This is an increase from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio (DPR) is 89.32%.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. BNP Paribas Exane raised their price target on PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a research report on Friday, April 17th. Piper Sandler upped their price objective on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research report on Thursday, March 12th. Rothschild & Co Redburn raised their target price on shares of PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Wells Fargo & Company dropped their target price on shares of PepsiCo from $165.00 to $160.00 and set an "equal weight" rating for the company in a research report on Monday. Finally, HSBC upped their price target on shares of PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $170.11.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Analysts and market commentary suggest PepsiCo’s recent portfolio reset could accelerate growth, with affordability, innovation, and productivity helping drive better volume trends in North America Foods and supporting a stronger 2026 outlook. Article Title
• Positive Sentiment: Some bullish commentary argues PepsiCo’s shares may still have room to run after a recent pullback, citing a strong first quarter and the possibility that the stock’s rally is just getting started. Article Title
• Neutral Sentiment: PepsiCo is being discussed as a possible beneficiary of the “permissible snacking” trend, which could broaden demand for its snack portfolio if consumers keep favoring healthier convenience foods. Article Title
• Neutral Sentiment: A comparison article highlighted that PepsiCo’s revenue can swing more seasonally than Coca-Cola’s, which reinforces PepsiCo’s more variable quarterly pattern but does not point to a fresh catalyst by itself. Article Title
• Negative Sentiment: Wells Fargo lowered its price target on PepsiCo to $160 from $165 while keeping an equal-weight rating, signaling more limited upside in the near term despite still implying some gain from current levels. Article Title
• Negative Sentiment: Some valuation-focused commentary says PepsiCo looks fairly priced rather than cheap versus peers, which may temper enthusiasm for buyers seeking a deeper discount. Article Title

PepsiCo 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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