Gerald Baker Financial Group LLC Acquires Shares of 8,675 PepsiCo, Inc. $PEP

Key Points

• Gerald Baker Financial Group opened a new position in PepsiCo during the first quarter, buying 8,675 shares worth about $1.319 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $2.20 and revenue of $24.18 billion, and it also raised its quarterly dividend to $1.48 per share.
• Analysts remain cautious overall: the stock has a Hold consensus rating and an average price target of $157.70, with several firms trimming or adjusting targets after recent mixed performance.

Gerald Baker Financial Group LLC bought a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 8,675 shares of the company's stock, valued at approximately $1,319,000.

A number of other hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. lifted its position 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 purchasing an additional 1,612,652 shares during the period. State Street Corp increased its holdings in PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after buying an additional 1,079,970 shares during the period. Auto Owners Insurance Co raised its position in shares of PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after buying an additional 48,923,629 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of PepsiCo by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of PepsiCo by 1.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after acquiring an additional 295,955 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

Analysts Set New Price Targets

Several brokerages have commented on PEP. UBS Group set a $159.00 price objective on shares of PepsiCo in a research report on Thursday, July 9th. Morgan Stanley reduced their target price on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. The Goldman Sachs Group lifted their price target on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Finally, Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $157.70.

PepsiCo Price Performance

Shares of PEP opened at $139.43 on Friday. The business has a 50-day simple moving average of $143.88 and a two-hundred day simple moving average of $151.31. PepsiCo, Inc. has a 12-month low of $134.65 and a 12-month high of $171.48. The stock has a market cap of $190.31 billion, a PE ratio of 18.27, a PEG ratio of 2.97 and a beta of 0.36. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion for the quarter, compared to analysts' expectations of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business's quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Analysts anticipate that PepsiCo, Inc. will post 8.58 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th were paid a dividend of $1.48 per share. The ex-dividend date of this dividend was Friday, June 5th. This is an increase from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. PepsiCo's payout ratio is 77.59%.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo India said first-half growth was robust and announced plans to build a new food manufacturing facility in Tamil Nadu, signaling continued expansion in a key international market. PepsiCo India sees robust growth in H1, will set up food manufacturing facility in Tamil Nadu
• Positive Sentiment: Management sounded cautiously optimistic about the second half, citing strong demand and saying PepsiCo is still maintaining its full-year outlook despite weather-related uncertainty and higher gas prices. PepsiCo cautiously optimistic on H2 amid robust demand, weather uncertainties: CEO
• Positive Sentiment: PepsiCo highlighted progress on sustainability, saying 70% of ingredients now come from sustainable sources and raising its target to 90% by 2030, which may support long-term brand and supply-chain positioning. PepsiCo (PEP) Pushes Sustainable Sourcing To 70% With A 90% Goal By 2030
• Neutral Sentiment: PepsiCo received continued attention from investors and analysts as a dividend and value stock, including a Seeking Alpha piece arguing for double-digit total return potential. PepsiCo: Dividend King With Double-Digit Total Return Potential
• Negative Sentiment: A Yahoo Finance report said U.S. grocery unit sales are falling, which is squeezing PepsiCo and other food companies and reinforces concerns about volume weakness in core markets. U.S. grocery unit sales falling, squeezing PepsiCo and food companies
• Negative Sentiment: Another report noted PepsiCo’s stock is at a 1-year low, reflecting broader investor concerns about slowing growth and the company’s recent mixed quarter. Why PepsiCo's stock is at a 1-year low
• Negative Sentiment: RBC Capital reiterated a Sector Perform rating and trimmed its price target, suggesting analysts remain cautious after PepsiCo’s mixed results. RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)

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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