HighTower Advisors LLC Has $491.13 Million Stock Position in PepsiCo, Inc. $PEP

Key Points

• HighTower Advisors trimmed its PepsiCo stake slightly in the fourth quarter, but still held 3.42 million shares valued at about $491.1 million, making PepsiCo its 29th-largest holding.
• PepsiCo reported strong quarterly results, with EPS of $1.61 topping estimates and revenue of $19.44 billion also beating forecasts, while sales rose 8.5% from a year earlier.
• The company continues to support shareholders with a larger dividend of $1.48 per share and a $10 billion buyback program, though analysts remain mixed with an overall Hold rating and an average price target of $170.11.

HighTower Advisors LLC lessened its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 0.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 3,422,021 shares of the company's stock after selling 16,420 shares during the period. PepsiCo accounts for 0.5% of HighTower Advisors LLC's holdings, making the stock its 29th biggest holding. HighTower Advisors LLC owned about 0.25% of PepsiCo worth $491,128,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. JCIC Asset Management Inc. acquired a new stake in shares of PepsiCo in the third quarter valued at about $27,000. MH & Associates Securities Management Corp ADV acquired a new position in shares of PepsiCo in the fourth quarter worth approximately $29,000. Imprint Wealth LLC bought a new stake in PepsiCo in the third quarter valued at approximately $31,000. Strategic Advocates LLC acquired a new stake in PepsiCo during the 3rd quarter valued at approximately $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new position in PepsiCo during the 4th quarter worth approximately $33,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $149.06 on Tuesday. The firm has a market capitalization of $203.73 billion, a P/E ratio of 23.40, a P/E/G ratio of 2.73 and a beta of 0.38. The firm's 50-day moving average price is $155.02 and its 200-day moving average price is $152.41. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. PepsiCo, Inc. has a 1-year low of $127.60 and a 1-year high of $171.48.

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 business had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. During the same period in the previous year, the company posted $1.48 EPS. The firm's revenue was up 8.5% compared to the same quarter last year. Equities research analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo announced that its Board of Directors has approved a stock repurchase program 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 shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

PepsiCo Increases Dividend

The company also recently announced 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 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%. PepsiCo's payout ratio is currently 89.32%.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Some market coverage points to PepsiCo as a possible momentum winner in consumer staples, suggesting investors are still rotating into defensive, dividend-paying names. Pepsi, Apple, and 9 More AI Momentum Trade Winners. Plus 4 Losers to Dump.
• Positive Sentiment: PepsiCo continues to screen as an attractive income stock, with recent dividend-focused articles reinforcing its status as a long-running dividend grower. From High-Yield to High-Growth: 3 Stocks Boosting Dividends
• Neutral Sentiment: Several recent pieces argue PepsiCo is fairly priced and not a bargain versus peers, which suggests limited near-term upside unless fundamentals improve further. PepsiCo: Fairly Priced, But Not A Deal Compared To Peers
• Negative Sentiment: Wells Fargo cut its price target on PepsiCo to $160 from $165 and kept an equal-weight rating, a sign that analysts see more limited near-term appreciation. Wells Fargo adjusts price target on PepsiCo to $160 from $165, maintains equalweight rating
• Negative Sentiment: One recent article noted PepsiCo has pulled back over the past week despite a strong first-quarter earnings report, which may be weighing on sentiment. PepsiCo's Next Big Rally Could Be Just Getting Started

Analyst Ratings Changes

PEP has been the topic of a number of analyst reports. Wall Street Zen lowered shares of PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Citigroup boosted their target price on shares of PepsiCo from $170.00 to $182.00 and gave the company a "buy" rating in a report on Wednesday, February 4th. The Goldman Sachs Group increased their price target on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. Finally, JPMorgan Chase & Co. raised their target price on PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a research note on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo has an average rating of "Hold" and an average price target of $170.11.

PepsiCo 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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