HS Management Partners LLC Reduces Stock Position in PepsiCo, Inc. $PEP

Key Points

• HS Management Partners LLC has reduced its stake in PepsiCo, Inc. by 0.9%, owning 354,556 shares valued at approximately $46.8 million. This positions PepsiCo as the firm's 13th largest holding.
• PepsiCo's quarterly earnings report indicates an earnings per share (EPS) of $2.12, exceeding expectations, with revenue of $22.73 billion, also above analyst estimates.
• The company recently announced a quarterly dividend of $1.4225 per share, reflecting an annualized dividend payout ratio of 103.64% and a yield of 4.1%.

HS Management Partners LLC lowered its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 0.9% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 354,556 shares of the company's stock after selling 3,351 shares during the period. PepsiCo comprises about 3.8% of HS Management Partners LLC's investment portfolio, making the stock its 13th biggest holding. HS Management Partners LLC's holdings in PepsiCo were worth $46,816,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in PEP. Nova Wealth Management Inc. bought a new stake in PepsiCo during the 1st quarter valued at about $25,000. Elite Financial Inc. purchased a new stake in shares of PepsiCo during the 1st quarter valued at about $28,000. Legend Financial Advisors Inc. purchased a new stake in shares of PepsiCo during the 2nd quarter valued at about $29,000. MorganRosel Wealth Management LLC purchased a new stake in shares of PepsiCo during the 1st quarter valued at about $55,000. Finally, Migdal Insurance & Financial Holdings Ltd. purchased a new position in shares of PepsiCo in the first quarter worth approximately $58,000. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $140.44 on Friday. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $177.50. The company's 50 day moving average is $144.63 and its 200 day moving average is $139.71. The company has a current ratio of 0.78, a quick ratio of 0.60 and a debt-to-equity ratio of 2.12. The company has a market cap of $192.27 billion, a PE ratio of 25.58, a price-to-earnings-growth ratio of 3.53 and a beta of 0.46.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Thursday, July 17th. The company reported $2.12 EPS for the quarter, topping the consensus estimate of $2.03 by $0.09. PepsiCo had a return on equity of 57.81% and a net margin of 8.23%.The business had revenue of $22.73 billion for the quarter, compared to analyst estimates of $22.28 billion. During the same quarter in the prior year, the firm posted $2.28 EPS. The business's quarterly revenue was up 1.0% compared to the same quarter last year. PepsiCo has set its FY 2025 guidance at 8.038-8.038 EPS. On average, sell-side analysts forecast that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Friday, September 5th will be given a dividend of $1.4225 per share. The ex-dividend date is Friday, September 5th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 4.1%. PepsiCo's dividend payout ratio (DPR) is 103.64%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on PEP shares. Citigroup lowered their price target on shares of PepsiCo from $168.00 to $165.00 and set a "buy" rating on the stock in a report on Thursday. Wells Fargo & Company lowered their target price on shares of PepsiCo from $154.00 to $150.00 and set an "equal weight" rating for the company in a research note on Thursday. JPMorgan Chase & Co. lowered their price objective on shares of PepsiCo from $150.00 to $139.00 and set a "neutral" rating for the company in a research note on Thursday, July 10th. Barclays upped their price objective on shares of PepsiCo from $132.00 to $144.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. Finally, UBS Group reduced their target price on shares of PepsiCo from $175.00 to $170.00 and set a "buy" rating for the company in a report on Thursday, September 11th. Four analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $158.13.

PepsiCo Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.

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