iA Global Asset Management Inc. Decreases Stock Holdings in PepsiCo, Inc. $PEP

Key Points

• iA Global Asset Management cut its PepsiCo stake by 17% in the first quarter, leaving it with 273,741 shares worth about $42.5 million.
• PepsiCo’s stock was down 2.4% and opened at $135.40, near its 1-year low of $132.47; the company also carries a large market cap of $185.06 billion and a dividend yield of about 4.4%.
• PepsiCo recently beat quarterly earnings and revenue estimates, and it raised its quarterly dividend to $1.48 per share from $1.42, even as Wall Street maintains a consensus Hold rating on the stock.

iA Global Asset Management Inc. reduced its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 17.0% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 273,741 shares of the company's stock after selling 56,216 shares during the period. iA Global Asset Management Inc.'s holdings in PepsiCo were worth $42,509,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of PepsiCo in the 4th quarter worth $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the 4th quarter valued at about $28,000. MH & Associates Securities Management Corp ADV purchased a new stake in shares of PepsiCo in the fourth quarter valued at about $29,000. Networth Advisors LLC increased its position in PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after purchasing an additional 200 shares during the last quarter. Finally, Vermillion Wealth Management Inc. increased its position in PepsiCo by 99.1% during the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock worth $34,000 after purchasing an additional 108 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo Trading Down 2.4%

Shares of PEP stock opened at $135.40 on Wednesday. PepsiCo, Inc. has a 1-year low of $132.47 and a 1-year high of $171.48. The firm has a market cap of $185.06 billion, a PE ratio of 21.26, a price-to-earnings-growth ratio of 2.80 and a beta of 0.35. The company has a 50-day moving average of $147.56 and a two-hundred day moving average of $151.91. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business's revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.48 EPS. On average, analysts predict that PepsiCo, Inc. will post 8.62 EPS for the current year.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were given a $1.48 dividend. The ex-dividend date of this dividend was 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 yield of 4.4%. PepsiCo's dividend payout ratio is presently 92.94%.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investor sentiment was lifted by bullish commentary from 24/7 Wall St., which argued PepsiCo could have more than 20% upside based on a price target above current levels and called the stock a buy. Pepsi Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: Unusual options activity pointed to rising trader interest, with investors buying a large volume of PepsiCo call options, often interpreted as a bullish signal. Investors Buy Large Volume of PepsiCo Call Options NASDAQ: PEP
• Positive Sentiment: PepsiCo expanded its manufacturing footprint in India by commissioning a second flavor plant in Ujjain, a long-term growth investment that could support supply and regional demand. PepsiCo India opens ₹1,266 cr flavour manufacturing facility in Ujjain
• Neutral Sentiment: Analysts are heading into PepsiCo’s July 9 earnings release expecting higher Q2 earnings and revenue, but this is still a forecast rather than a reported result. PepsiCo Likely To Report Higher Q2 Earnings
• Neutral Sentiment: PepsiCo is also facing a trademark dispute involving “Rise” and “Mtn Dew Rise” at the U.S. Supreme Court, which adds legal uncertainty but is not yet a confirmed financial hit. US Supreme Court takes up Pepsi 'Mtn Dew Rise' trademark dispute
• Negative Sentiment: Competition in the soda market remains intense, with Coca-Cola highlighted as having a Freestyle-machine advantage and launching an exclusive new soda flavor at Wingstop, underscoring pressure on PepsiCo’s beverage business. Coca-Cola launches exclusive soda flavor at fast-food giant

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on PEP shares. Bank of America decreased their target price on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a report on Thursday, June 25th. UBS Group cut their price target on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Wall Street Zen lowered shares of PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Jefferies Financial Group set a $162.00 price objective on PepsiCo in a research report on Thursday, June 25th. Finally, Piper Sandler cut their target price on PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $166.85.

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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