Intech Investment Management LLC Acquires 48,260 Shares of PepsiCo, Inc. $PEP

Key Points

• Intech Investment Management LLC increased its PepsiCo stake by 72.8% in the fourth quarter, buying 48,260 additional shares and bringing its total holding to 114,559 shares valued at about $16.4 million.
• PepsiCo recently raised its quarterly dividend by 4% to $1.48 per share, implying an annualized yield of about 4.0%. The company also has a $10 billion stock buyback authorization in place.
• Analysts remain mixed but generally cautious: the stock has a consensus Hold rating with an average price target of $170.11, while PepsiCo’s latest earnings beat expectations on both EPS and revenue.

Intech Investment Management LLC boosted its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 72.8% in the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 114,559 shares of the company's stock after buying an additional 48,260 shares during the quarter. Intech Investment Management LLC's holdings in PepsiCo were worth $16,442,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the stock. Cypress Capital Management LLC WY lifted its position in PepsiCo by 8.3% during the fourth quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock valued at $121,000 after purchasing an additional 64 shares during the period. United Bank lifted its holdings in shares of PepsiCo by 3.9% during the 4th 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 period. Koa Wealth Management LLC boosted its stake in shares of PepsiCo by 0.9% in the 4th quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock worth $1,149,000 after buying an additional 68 shares during the last quarter. Delta Asset Management LLC TN grew 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 worth $1,545,000 after acquiring an additional 70 shares during the period. Finally, Westside Investment Management Inc. increased its position in PepsiCo by 2.8% during the third quarter. Westside Investment Management Inc. now owns 2,602 shares of the company's stock valued at $366,000 after acquiring an additional 70 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo recently boosted its quarterly dividend by 4% to $1.48 per share, a signal of confidence in cash flow and shareholder returns. The company was also highlighted as one of the best dividend-paying beverage stocks to buy now. Here is Why PepsiCo (PEP) is Among the Best Dividend-Paying Beverage Stocks to Buy Now
• Positive Sentiment: Piper Sandler reiterated a Buy rating on PepsiCo with a $181 price target, suggesting upside from current levels even as investors weigh inflation headwinds. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Neutral Sentiment: PepsiCo and the PepsiCo Foundation announced several sustainability and agriculture initiatives, including support for young European farmers and a low-carbon fertilizer alliance, which may help long-term brand positioning but is unlikely to move the stock immediately. Future Harvest: The European program tackling the decline in generational renewal in farming
• Neutral Sentiment: Reports about new packaging labels, AI hiring priorities, and PepsiCo’s role in APAC sports sponsorship mostly reflect ongoing operational and marketing trends rather than a direct earnings catalyst. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Negative Sentiment: Recent trading has shown PepsiCo stock slipping as the broader market rose, with investors still concerned about inflation pressures and margin risk for a consumer staples company facing higher input costs. PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

Analysts Set New Price Targets

Several research analysts have issued reports on the company. TD Cowen raised their target price on PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research report on Friday, February 20th. Rothschild & Co Redburn raised their price objective on shares of PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Wall Street Zen lowered shares of PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. JPMorgan Chase & Co. increased their price target on shares of PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Finally, Barclays boosted their price objective on shares of PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research report on Monday, April 20th. Eight 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 data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $170.11.

PepsiCo Trading Down 1.0%

Shares of NASDAQ:PEP opened at $146.29 on Friday. The stock has a 50 day moving average of $153.31 and a 200 day moving average of $152.66. The company has a market cap of $199.94 billion, a PE ratio of 22.97, a price-to-earnings-growth ratio of 2.68 and a beta of 0.38. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. 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 (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, beating the consensus estimate 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 company's revenue for the quarter was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.48 earnings per share. As a group, equities research analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Friday, June 5th. This is a boost from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

PepsiCo announced that its board has initiated a stock repurchase program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to reacquire up to 4.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

About PepsiCo

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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