Geode Capital Management LLC Buys 360,936 Shares of PepsiCo, Inc. $PEP

Key Points

• Geode Capital Management increased its PepsiCo stake by 1.1% in the fourth quarter, buying 360,936 additional shares and bringing its total holdings to 33.6 million shares valued at about $4.81 billion.
• PepsiCo reported solid quarterly results, with earnings of $1.61 per share beating estimates and revenue rising 8.5% year over year to $19.44 billion, while analysts still expect $8.63 per share for the full fiscal year.
• The company also announced a $10 billion share buyback and raised its quarterly dividend to $1.48 per share, which implies a 4.0% annualized yield.

Geode Capital Management LLC grew its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 1.1% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 33,617,937 shares of the company's stock after purchasing an additional 360,936 shares during the period. Geode Capital Management LLC owned approximately 2.46% of PepsiCo worth $4,814,835,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of the business. Vanguard Group Inc. boosted its stake in PepsiCo by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after acquiring an additional 1,612,652 shares in the last quarter. State Street Corp lifted its stake in shares of PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Invesco Ltd. raised its holdings in shares of PepsiCo by 7.6% during the third quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock valued at $1,912,476,000 after purchasing an additional 958,701 shares during the last quarter. Legal & General Group Plc raised its holdings in shares of PepsiCo by 1.2% during the fourth quarter. Legal & General Group Plc now owns 9,005,569 shares of the company's stock valued at $1,292,479,000 after purchasing an additional 102,905 shares during the last quarter. Finally, Amundi raised its holdings in shares of PepsiCo by 30.0% during the third quarter. Amundi now owns 8,641,588 shares of the company's stock valued at $1,207,230,000 after purchasing an additional 1,995,362 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $147.74 on Thursday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The firm has a fifty day moving average price of $153.52 and a 200 day moving average price of $152.63. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The firm has a market cap of $201.93 billion, a price-to-earnings ratio of 23.19, a P/E/G ratio of 2.64 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 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 firm had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the prior year, the business earned $1.48 earnings per share. PepsiCo's revenue for the quarter was up 8.5% on a year-over-year basis. As a group, sell-side analysts expect that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo declared that its Board of Directors has authorized a share buyback program on Tuesday, February 3rd that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to buy up to 4.7% of its stock through open market purchases. Stock buyback programs are usually an indication 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. Investors of record on Friday, June 5th will be given a dividend of $1.48 per share. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Piper Sandler reaffirmed a Buy rating on PepsiCo with a $181 price target, suggesting analysts still see upside despite rising inflation concerns. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Positive Sentiment: PepsiCo is highlighting its product quality and marketing with new packaging that will carry a “no artificial flavours or colours” label, which could help reinforce consumer trust and support demand for its brands. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Neutral Sentiment: PepsiCo management said the company is emphasizing “hustle,” curiosity, and adaptability in hiring as AI reshapes talent needs. This is more of a workforce/culture update than an immediate earnings driver. As Amazon And Others Turn To AI Hiring Tools, PepsiCo Doubles Down On 'Hustle' And Curiosity
• Neutral Sentiment: Several analyst and industry pieces noted that PepsiCo’s valuation targets have been adjusted modestly and that the soft drink sector is facing tariff and cost pressures, but these updates were largely incremental rather than a major change in fundamentals. How The PepsiCo (PEP) Story Is Shifting As Analysts Rework Targets And Assumptions
• Negative Sentiment: One market report said PepsiCo stock underperformed peers on Tuesday, reflecting some relative weakness versus competitors even as broader sector themes remained mixed. PepsiCo Inc. stock underperforms Tuesday when compared to competitors

Analysts Set New Price Targets

Several research firms have weighed in on PEP. Deutsche Bank Aktiengesellschaft increased their price target on shares of PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Barclays increased their price objective on shares of PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research note on Monday, April 20th. Morgan Stanley increased their price objective on shares of PepsiCo from $165.00 to $180.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 4th. TD Cowen increased their price objective on shares of PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research note on Friday, February 20th. Finally, Evercore increased their price objective on shares of PepsiCo from $165.00 to $170.00 in a research note 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $170.11.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.