King Luther Capital Management Corp Decreases Stock Position in PepsiCo, Inc. (NASDAQ:PEP)

Key Points

• King Luther Capital Management Corp reduced its stake in PepsiCo by 18.5%, selling 232,643 shares and now owning 1,024,417 shares, valued at approximately $153.6 million.
• PepsiCo reported better-than-expected quarterly earnings, with an EPS of $2.12 compared to the consensus estimate of $2.03, along with a revenue of $22.73 billion exceeding analyst expectations.
• The company declared a quarterly dividend of $1.4225 to be paid on September 30th, yielding approximately 3.9% annually, with a current dividend payout ratio of 103.64%.

King Luther Capital Management Corp lessened its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 18.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,024,417 shares of the company's stock after selling 232,643 shares during the period. King Luther Capital Management Corp owned 0.07% of PepsiCo worth $153,601,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of the business. Legacy Financial Group LLC grew its stake in shares of PepsiCo by 4.9% during the 1st quarter. Legacy Financial Group LLC now owns 1,514 shares of the company's stock valued at $227,000 after acquiring an additional 71 shares during the period. Pflug Koory LLC grew its stake in shares of PepsiCo by 1.0% during the 1st quarter. Pflug Koory LLC now owns 7,750 shares of the company's stock valued at $1,162,000 after acquiring an additional 76 shares during the period. Hoge Financial Services LLC grew its stake in shares of PepsiCo by 2.1% during the 1st quarter. Hoge Financial Services LLC now owns 3,633 shares of the company's stock valued at $545,000 after acquiring an additional 76 shares during the period. Members Trust Co grew its stake in shares of PepsiCo by 1.3% during the 1st quarter. Members Trust Co now owns 5,941 shares of the company's stock valued at $891,000 after acquiring an additional 77 shares during the period. Finally, Fairview Capital Investment Management LLC grew its stake in shares of PepsiCo by 2.3% during the 4th quarter. Fairview Capital Investment Management LLC now owns 3,526 shares of the company's stock valued at $536,000 after acquiring an additional 78 shares during the period. Institutional investors own 73.07% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Morgan Stanley boosted their price objective on PepsiCo from $153.00 to $165.00 and gave the company an "equal weight" rating in a research note on Friday, July 18th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of PepsiCo in a research note on Thursday, July 17th. Dbs Bank downgraded PepsiCo from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Bank of America dropped their price target on PepsiCo from $150.00 to $145.00 and set a "neutral" rating for the company in a research note on Friday, July 11th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $148.00 price target on shares of PepsiCo in a research note on Tuesday, June 24th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $158.73.

PepsiCo Price Performance

Shares of PEP traded down $0.34 during mid-day trading on Monday, hitting $144.87. 5,772,177 shares of the stock were exchanged, compared to its average volume of 9,407,565. The company has a market cap of $198.34 billion, a PE ratio of 26.39, a price-to-earnings-growth ratio of 3.87 and a beta of 0.45. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $179.73. The firm has a 50-day moving average of $135.98 and a two-hundred day moving average of $140.57. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.60 and a current ratio of 0.78.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The company reported $2.12 earnings per share for the quarter, beating 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 company had revenue of $22.73 billion for the quarter, compared to analyst estimates of $22.28 billion. During the same quarter in the prior year, the firm posted $2.28 EPS. PepsiCo's quarterly revenue was up 1.0% compared to the same quarter last year. On average, equities analysts predict that PepsiCo, Inc. will post 8.3 earnings per share 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 issued a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a yield of 3.9%. The ex-dividend date is Friday, September 5th. PepsiCo's dividend payout ratio is presently 103.64%.

PepsiCo Company Profile

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.