Jefferies Financial Group Inc. Has $50.97 Million Holdings in PepsiCo, Inc. $PEP

Key Points

• Jefferies Financial Group dramatically increased its PepsiCo stake in the fourth quarter, buying 350,506 additional shares and lifting its holdings to 355,172 shares worth about $50.97 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion topping estimates; revenue rose 8.5% year over year.
• The company also raised its quarterly dividend to $1.48 per share, bringing the annualized payout to $5.92 and a yield of about 3.9%, even as analysts maintain a mixed outlook with an overall Hold consensus.

Jefferies Financial Group Inc. boosted its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 7,511.9% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 355,172 shares of the company's stock after purchasing an additional 350,506 shares during the quarter. Jefferies Financial Group Inc.'s holdings in PepsiCo were worth $50,974,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. United Bank raised its stake in PepsiCo by 3.9% during the fourth quarter. United Bank now owns 1,717 shares of the company's stock worth $246,000 after acquiring an additional 65 shares in the last quarter. Koa Wealth Management LLC raised its stake in PepsiCo by 0.9% during the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock worth $1,149,000 after acquiring an additional 68 shares in the last quarter. Facet Wealth Inc. raised its stake in PepsiCo by 3.2% during the third quarter. Facet Wealth Inc. now owns 2,221 shares of the company's stock worth $312,000 after acquiring an additional 69 shares in the last quarter. Delta Asset Management LLC TN raised its stake in PepsiCo by 0.6% during 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 in the last quarter. Finally, Westside Investment Management Inc. raised its stake in PepsiCo by 2.8% during the third quarter. Westside Investment Management Inc. now owns 2,602 shares of the company's stock worth $366,000 after acquiring an additional 70 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Royal Bank Of Canada lowered their target price on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research note on Thursday, April 9th. Wall Street Zen downgraded PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. JPMorgan Chase & Co. boosted their target price on PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a research note on Friday, April 17th. HSBC boosted their price target on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday, April 17th. Finally, Rothschild & Co Redburn boosted their price target on PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Eight 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. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $170.11.

Trending Headlines about PepsiCo

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 Performance

Shares of PEP stock opened at $150.57 on Friday. The business's 50 day simple moving average is $154.17 and its 200 day simple moving average is $152.45. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The stock has a market capitalization of $205.79 billion, a PE ratio of 23.64, a PEG ratio of 2.73 and a beta of 0.38. 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 announced its earnings results 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 business had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same period in the prior year, the business posted $1.48 earnings per share. The firm's revenue was up 8.5% on a year-over-year basis. As a group, research analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a $1.48 dividend. The ex-dividend date is Friday, June 5th. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a yield of 3.9%. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

PepsiCo announced that its board has approved a share repurchase plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's management believes its stock is undervalued.

PepsiCo Company 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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