HS Management Partners LLC Sells 129,728 Shares of PepsiCo, Inc. $PEP

Key Points

• HS Management Partners LLC cut its PepsiCo stake by 69.7% in the fourth quarter, selling 129,728 shares and leaving it with 56,473 shares worth about $8.1 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 topping estimates and revenue rising 8.5% year over year to $19.44 billion.
• The company raised its quarterly dividend to $1.48 per share and approved a $10 billion share repurchase program, while analysts remain mostly neutral with a consensus rating of Hold.

HS Management Partners LLC decreased its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 69.7% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 56,473 shares of the company's stock after selling 129,728 shares during the quarter. PepsiCo accounts for about 1.7% of HS Management Partners LLC's investment portfolio, making the stock its 24th biggest position. HS Management Partners LLC's holdings in PepsiCo were worth $8,105,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the business. United Bank grew its stake in shares of PepsiCo by 3.9% during the fourth quarter. United Bank now owns 1,717 shares of the company's stock valued at $246,000 after buying an additional 65 shares during the last quarter. Koa Wealth Management LLC boosted its holdings in shares of PepsiCo by 0.9% in the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock valued at $1,149,000 after purchasing an additional 68 shares during the period. Facet Wealth Inc. boosted its holdings in shares of PepsiCo by 3.2% in the third quarter. Facet Wealth Inc. now owns 2,221 shares of the company's stock valued at $312,000 after purchasing an additional 69 shares during the period. Delta Asset Management LLC TN boosted its holdings in shares of PepsiCo by 0.6% in the third quarter. Delta Asset Management LLC TN now owns 11,000 shares of the company's stock valued at $1,545,000 after purchasing an additional 70 shares during the period. Finally, Westside Investment Management Inc. boosted its holdings in shares of PepsiCo by 2.8% in the third quarter. Westside Investment Management Inc. now owns 2,602 shares of the company's stock valued at $366,000 after purchasing an additional 70 shares during the period. Institutional investors own 73.07% of the company's stock.

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 Stock Up 1.2%

PepsiCo stock opened at $150.57 on Friday. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $171.48. The business has a fifty day moving average of $154.17 and a two-hundred day moving average of $152.45. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The firm has a market cap of $205.79 billion, a P/E ratio of 23.64, a P/E/G ratio of 2.73 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 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 during the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the prior year, the business posted $1.48 EPS. The business's revenue for the quarter was up 8.5% compared to the same quarter last year. On average, analysts forecast 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 plan on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to buy up to 4.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be issued a dividend of $1.48 per share. The ex-dividend date is Friday, June 5th. 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. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on PEP. JPMorgan Chase & Co. boosted their price target on PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. HSBC upped their target price on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday, April 17th. Evercore upped their target price on PepsiCo from $165.00 to $170.00 in a report on Friday, April 17th. UBS Group lowered their target price on PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Finally, The Goldman Sachs Group upped their target price on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price 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.

Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP - Free Report).

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.