Jensen Investment Management Inc. Reduces Holdings in PepsiCo, Inc. (NASDAQ:PEP)

Key Points

• Jensen Investment Management Inc. significantly reduced its stake in PepsiCo, Inc. by 58% in Q1, now holding approximately $160.73 million worth of the stock.
• PepsiCo has recently reported a quarterly EPS of $2.12, exceeding analyst expectations, with revenues of $22.73 billion, marking a 1% increase from the previous year.
• The company announced a quarterly dividend of $1.4225, which translates to an annualized dividend of $5.69 and a yield of 4.1%, despite a payout ratio of 103.64%.

Jensen Investment Management Inc. cut its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 58.0% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,071,955 shares of the company's stock after selling 1,482,348 shares during the period. PepsiCo accounts for 1.8% of Jensen Investment Management Inc.'s holdings, making the stock its 23rd biggest holding. Jensen Investment Management Inc. owned about 0.08% of PepsiCo worth $160,729,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. GAMMA Investing LLC increased its position in shares of PepsiCo by 19,106.5% during the first quarter. GAMMA Investing LLC now owns 4,588,614 shares of the company's stock worth $688,017,000 after purchasing an additional 4,564,723 shares in the last quarter. Assenagon Asset Management S.A. increased its position in PepsiCo by 106.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 3,514,965 shares of the company's stock valued at $527,034,000 after buying an additional 1,809,391 shares in the last quarter. Vanguard Group Inc. raised its stake in PepsiCo by 1.4% in the first quarter. Vanguard Group Inc. now owns 135,174,252 shares of the company's stock valued at $20,268,027,000 after buying an additional 1,802,748 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in PepsiCo in the fourth quarter worth about $221,297,000. Finally, Northern Trust Corp grew its stake in shares of PepsiCo by 8.7% during the fourth quarter. Northern Trust Corp now owns 16,403,395 shares of the company's stock worth $2,494,300,000 after acquiring an additional 1,306,818 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Price Performance

NASDAQ PEP traded up $1.35 during trading hours on Wednesday, reaching $140.80. The company's stock had a trading volume of 6,746,011 shares, compared to its average volume of 9,650,565. The firm has a market capitalization of $192.77 billion, a price-to-earnings ratio of 25.65, a P/E/G ratio of 3.72 and a beta of 0.45. The company's 50-day moving average is $134.99 and its two-hundred day moving average is $140.76. The company has a debt-to-equity ratio of 2.12, a current ratio of 0.78 and a quick ratio of 0.60. PepsiCo, Inc. has a 1-year low of $127.60 and a 1-year high of $179.73.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, July 17th. The company reported $2.12 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.09. PepsiCo had a return on equity of 57.81% and a net margin of 8.23%. The business had revenue of $22.73 billion during the quarter, compared to the consensus estimate of $22.28 billion. During the same period in the prior year, the company posted $2.28 EPS. The business's quarterly revenue was up 1.0% on a year-over-year basis. On average, equities analysts predict that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, September 5th will be given a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Friday, September 5th. PepsiCo's dividend payout ratio is 103.64%.

Analyst Ratings Changes

A number of research firms recently commented on PEP. Barclays lifted their target price on shares of PepsiCo from $132.00 to $144.00 and gave the stock an "equal weight" rating in a research note on Monday, July 21st. UBS Group dropped their price objective on shares of PepsiCo from $175.00 to $169.00 and set a "buy" rating on the stock in a report on Friday, April 25th. Cowen reissued a "hold" rating on shares of PepsiCo in a research report on Thursday, July 17th. Dbs Bank lowered PepsiCo from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Finally, JPMorgan Chase & Co. dropped their price target on PepsiCo from $150.00 to $139.00 and set a "neutral" rating on the stock in a research note on Thursday, July 10th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $158.73.

About PepsiCo

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.