Fisher Asset Management LLC Buys 183,291 Shares of PepsiCo, Inc. $PEP

Key Points

• Fisher Asset Management increased its PepsiCo stake by 2.3% in the fourth quarter, buying 183,291 shares and bringing its holding to 8.3 million shares worth about $1.19 billion.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 versus the $1.55 estimate and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share from $1.42 and also has a $10 billion share repurchase authorization in place, signaling continued capital returns to shareholders.

Fisher Asset Management LLC increased its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.3% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 8,295,329 shares of the company's stock after purchasing an additional 183,291 shares during the period. Fisher Asset Management LLC owned approximately 0.61% of PepsiCo worth $1,190,546,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of PEP. MH & Associates Securities Management Corp ADV bought a new position in shares of PepsiCo in the fourth quarter worth $29,000. Imprint Wealth LLC bought a new position in shares of PepsiCo in the third quarter worth $31,000. Strategic Advocates LLC bought a new position in shares of PepsiCo in the third quarter worth $33,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of PepsiCo in the fourth quarter worth $33,000. Finally, Highline Wealth Partners LLC boosted its stake in PepsiCo by 56.3% in the fourth quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock valued at $36,000 after buying an additional 90 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo Price Performance

PepsiCo stock opened at $150.57 on Monday. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The company has a market capitalization of $205.79 billion, a PE ratio of 23.64, a P/E/G ratio of 2.73 and a beta of 0.38. PepsiCo, Inc. has a 12 month low of $127.60 and a 12 month high of $171.48. The stock has a 50-day moving average price of $154.17 and a two-hundred day moving average price of $152.52.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating 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 period last year, the company earned $1.48 earnings per share. Analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The company 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 a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a yield of 3.9%. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio is 89.32%.

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

Wall Street Analysts Forecast Growth

PEP has been the topic of several research analyst reports. BNP Paribas Exane raised their price objective on PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a research note on Friday, April 17th. Barclays raised their price objective on PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research note on Monday, April 20th. Evercore raised their price objective on PepsiCo from $165.00 to $170.00 in a research note on Friday, April 17th. HSBC raised their price objective on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Finally, The Goldman Sachs Group raised their price objective on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Eight research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo presently has a consensus rating of "Hold" and an average price target of $170.11.

More PepsiCo News

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

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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