General American Investors Co. Inc. Trims Holdings in PepsiCo, Inc. $PEP

Key Points

• General American Investors Co. Inc. cut its PepsiCo stake by 12.5% in the fourth quarter, selling 20,000 shares and leaving it with 140,000 shares valued at about $20.1 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 and revenue of $19.44 billion, both ahead of analyst estimates. Revenue also rose 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share from $1.42, bringing the annualized payout to $5.92 and the dividend yield to about 4.1%.

General American Investors Co. Inc. trimmed its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 12.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 140,000 shares of the company's stock after selling 20,000 shares during the period. PepsiCo comprises about 1.1% of General American Investors Co. Inc.'s investment portfolio, making the stock its 27th largest position. General American Investors Co. Inc.'s holdings in PepsiCo were worth $20,093,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Captrust Financial Advisors lifted its holdings in shares of PepsiCo by 3.6% during the 3rd quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock worth $77,916,000 after acquiring an additional 19,218 shares during the period. Swiss Life Asset Management Ltd lifted its holdings in shares of PepsiCo by 11.4% during the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company's stock worth $59,600,000 after acquiring an additional 42,335 shares during the period. Murphy Middleton Hinkle & Parker Inc. lifted its holdings in shares of PepsiCo by 622.3% during the 4th quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock worth $5,110,000 after acquiring an additional 30,674 shares during the period. Allstate Corp lifted its holdings in shares of PepsiCo by 108.1% during the 4th quarter. Allstate Corp now owns 104,723 shares of the company's stock worth $15,030,000 after acquiring an additional 54,405 shares during the period. Finally, NEOS Investment Management LLC lifted its holdings in shares of PepsiCo by 65.8% during the 3rd quarter. NEOS Investment Management LLC now owns 577,111 shares of the company's stock worth $81,049,000 after acquiring an additional 229,121 shares during the period. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Up 0.4%

PEP stock opened at $144.27 on Friday. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $171.48. 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 $197.18 billion, a P/E ratio of 22.65, a PEG ratio of 2.61 and a beta of 0.35. The firm has a 50 day simple moving average of $151.11 and a 200-day simple moving average of $152.37.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share 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 business had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. During the same quarter last year, the company earned $1.48 earnings per share. The business's quarterly revenue was up 8.5% compared to the same quarter last year. On average, equities research analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be given a dividend of $1.48 per share. The ex-dividend date of this dividend 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 dividend yield of 4.1%. PepsiCo's dividend payout ratio is 92.94%.

Analysts Set New Price Targets

PEP has been the topic of several recent analyst reports. The Goldman Sachs Group increased their price objective on shares of PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Sanford C. Bernstein started coverage on shares of PepsiCo in a report on Thursday. They issued a "market perform" rating and a $143.00 price target on the stock. Barclays raised their price target on shares of PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a report on Monday, April 20th. TD Cowen cut their price target on shares of PepsiCo from $165.00 to $150.00 and set a "hold" rating on the stock in a report on Friday. Finally, UBS Group cut their price target on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, PepsiCo has a consensus rating of "Hold" and a consensus target price of $167.35.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo NASDAQ: PEP Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

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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