Foundations Investment Advisors LLC Grows Stake in PepsiCo, Inc. $PEP

Key Points

• Foundations Investment Advisors LLC more than doubled its PepsiCo stake in the fourth quarter, increasing holdings by 122.1% to 33,924 shares worth about $4.87 million.
• PepsiCo reported strong quarterly results, posting $1.61 EPS on $19.44 billion in revenue, both above analyst expectations, while revenue rose 8.5% from a year earlier.
• The company raised its quarterly dividend to $1.48 per share and also has a $10 billion share buyback authorization in place, reinforcing its shareholder-return focus.

Foundations Investment Advisors LLC raised its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 122.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 33,924 shares of the company's stock after purchasing an additional 18,651 shares during the quarter. Foundations Investment Advisors LLC's holdings in PepsiCo were worth $4,869,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of PEP. Brighton Jones LLC increased its position in shares of PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of PepsiCo during the first quarter worth about $251,000. Sivia Capital Partners LLC increased its position in shares of PepsiCo by 138.5% during 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 during the last quarter. Schnieders Capital Management LLC. increased its position in shares of PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock worth $5,039,000 after acquiring an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. increased its position in shares of PepsiCo by 45.5% during the second quarter. Sei Investments Co. now owns 536,133 shares of the company's stock worth $70,789,000 after acquiring an additional 167,707 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Stock Down 1.0%

Shares of PepsiCo stock opened at $146.29 on Friday. 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 firm has a market cap of $199.94 billion, a P/E ratio of 22.97, a P/E/G ratio of 2.68 and a beta of 0.38. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The business has a 50-day moving average price of $153.31 and a 200 day moving average price of $152.66.

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

PepsiCo declared that its Board of Directors has approved a share buyback plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is 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 paid a $1.48 dividend. The ex-dividend date is Friday, June 5th. 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 4.0%. PepsiCo's payout ratio is presently 89.32%.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo recently boosted its quarterly dividend by 4% to $1.48 per share, a signal of confidence in cash flow and shareholder returns. The company was also highlighted as one of the best dividend-paying beverage stocks to buy now. Here is Why PepsiCo (PEP) is Among the Best Dividend-Paying Beverage Stocks to Buy Now
• Positive Sentiment: Piper Sandler reiterated a Buy rating on PepsiCo with a $181 price target, suggesting upside from current levels even as investors weigh inflation headwinds. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Neutral Sentiment: PepsiCo and the PepsiCo Foundation announced several sustainability and agriculture initiatives, including support for young European farmers and a low-carbon fertilizer alliance, which may help long-term brand positioning but is unlikely to move the stock immediately. Future Harvest: The European program tackling the decline in generational renewal in farming
• Neutral Sentiment: Reports about new packaging labels, AI hiring priorities, and PepsiCo’s role in APAC sports sponsorship mostly reflect ongoing operational and marketing trends rather than a direct earnings catalyst. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Negative Sentiment: Recent trading has shown PepsiCo stock slipping as the broader market rose, with investors still concerned about inflation pressures and margin risk for a consumer staples company facing higher input costs. PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

Analysts Set New Price Targets

PEP has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft lifted their target price on PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Evercore boosted their price objective on PepsiCo from $165.00 to $170.00 in a report on Friday, April 17th. UBS Group lowered their price objective on PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Morgan Stanley boosted their price objective on PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. Finally, Rothschild & Co Redburn boosted their price objective on PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Eight research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $170.11.

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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