Guinness Asset Management LTD Cuts Stake in PepsiCo, Inc. $PEP

Key Points

• Guinness Asset Management cut its PepsiCo stake by 3.1% in the fourth quarter, but still held 1.54 million shares worth about $221 million, making PepsiCo its 11th-largest holding.
• PepsiCo posted better-than-expected quarterly results, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion, up 8.5% year over year.
• The company boosted its quarterly dividend to $1.48 per share and has a $10 billion share buyback authorization in place, signaling continued shareholder returns despite some margin and cost pressures.

Guinness Asset Management LTD reduced its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 3.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,536,967 shares of the company's stock after selling 48,590 shares during the period. PepsiCo comprises approximately 3.6% of Guinness Asset Management LTD's portfolio, making the stock its 11th biggest holding. Guinness Asset Management LTD owned about 0.11% of PepsiCo worth $220,953,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. MH & Associates Securities Management Corp ADV bought a new position in PepsiCo during the fourth quarter valued at approximately $29,000. Imprint Wealth LLC bought a new position in PepsiCo during the third quarter valued at approximately $31,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in PepsiCo during the fourth quarter valued at approximately $33,000. Strategic Advocates LLC bought a new position in PepsiCo during the third quarter valued at approximately $33,000. Finally, Highline Wealth Partners LLC grew its position in PepsiCo by 56.3% during the fourth quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock valued at $36,000 after acquiring an additional 90 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Price Performance

Shares of PepsiCo stock opened at $150.57 on Friday. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The business's 50 day simple moving average is $154.17 and its two-hundred day simple moving average is $152.45. The stock has a market capitalization of $205.79 billion, a P/E ratio of 23.64, a price-to-earnings-growth ratio of 2.70 and a beta of 0.38. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48.

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

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

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be paid a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 3.9%. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, June 5th. PepsiCo's payout ratio is presently 89.32%.

Analyst Ratings Changes

A number of research analysts have commented on PEP shares. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. The Goldman Sachs Group lifted their price target on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Deutsche Bank Aktiengesellschaft lifted their price target on PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Citigroup lifted their price target on PepsiCo from $170.00 to $182.00 and gave the stock a "buy" rating in a research note on Wednesday, February 4th. Finally, HSBC lifted their price target on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a research note on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus 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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