Integrity Alliance LLC. Raises Stake in PepsiCo, Inc. $PEP

Key Points

• Integrity Alliance LLC increased its PepsiCo stake by 118.6% in the fourth quarter, bringing its holdings to 20,511 shares valued at about $2.94 million.
• PepsiCo reported strong quarterly results, posting earnings of $1.61 per share and revenue of $19.44 billion, both ahead of analyst expectations. Revenue rose 8.5% from a year earlier.
• The company also announced a higher quarterly dividend of $1.48 per share and a $10 billion share repurchase program, while analysts currently hold a consensus rating of “Hold” with an average price target of $170.11.

Integrity Alliance LLC. boosted its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 118.6% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 20,511 shares of the company's stock after purchasing an additional 11,128 shares during the period. Integrity Alliance LLC.'s holdings in PepsiCo were worth $2,944,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently bought and sold shares of PEP. AQR Capital Management LLC grew its position in PepsiCo by 120.7% during the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company's stock worth $830,902,000 after purchasing an additional 3,235,726 shares during the last quarter. Amundi grew its position in PepsiCo by 30.0% during the 3rd quarter. Amundi now owns 8,641,588 shares of the company's stock worth $1,207,230,000 after purchasing an additional 1,995,362 shares during the last quarter. Vanguard Group Inc. grew its position in PepsiCo by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after purchasing an additional 1,612,652 shares during the last quarter. Caisse de depot et placement du Quebec grew its position in PepsiCo by 151.7% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 2,597,986 shares of the company's stock worth $364,861,000 after purchasing an additional 1,565,883 shares during the last quarter. Finally, SG Americas Securities LLC grew its position in PepsiCo by 406.0% during the 4th quarter. SG Americas Securities LLC now owns 1,789,959 shares of the company's stock worth $256,895,000 after purchasing an additional 1,436,216 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. TD Cowen lifted their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a report on Friday, February 20th. The Goldman Sachs Group lifted their target price on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a report on Friday, April 17th. Morgan Stanley lifted their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. Piper Sandler lifted their target price on shares of PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. Finally, Evercore lifted their target price on shares of PepsiCo from $165.00 to $170.00 in a report on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, PepsiCo presently has a consensus rating of "Hold" and an average price target of $170.11.

PepsiCo Trading Up 1.4%

Shares of PEP opened at $147.74 on Thursday. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The firm's 50-day moving average is $153.52 and its two-hundred day moving average is $152.63. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $171.48. The firm has a market capitalization of $201.93 billion, a P/E ratio of 23.19, a PEG ratio of 2.64 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same period in the prior year, the business posted $1.48 earnings per share. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. On average, research analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

PepsiCo Increases Dividend

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

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Piper Sandler reaffirmed a Buy rating on PepsiCo with a $181 price target, suggesting analysts still see upside despite rising inflation concerns. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Positive Sentiment: PepsiCo is highlighting its product quality and marketing with new packaging that will carry a “no artificial flavours or colours” label, which could help reinforce consumer trust and support demand for its brands. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Neutral Sentiment: PepsiCo management said the company is emphasizing “hustle,” curiosity, and adaptability in hiring as AI reshapes talent needs. This is more of a workforce/culture update than an immediate earnings driver. As Amazon And Others Turn To AI Hiring Tools, PepsiCo Doubles Down On 'Hustle' And Curiosity
• Neutral Sentiment: Several analyst and industry pieces noted that PepsiCo’s valuation targets have been adjusted modestly and that the soft drink sector is facing tariff and cost pressures, but these updates were largely incremental rather than a major change in fundamentals. How The PepsiCo (PEP) Story Is Shifting As Analysts Rework Targets And Assumptions
• Negative Sentiment: One market report said PepsiCo stock underperformed peers on Tuesday, reflecting some relative weakness versus competitors even as broader sector themes remained mixed. PepsiCo Inc. stock underperforms Tuesday when compared to competitors

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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