Lindsell Train Ltd Sells 524,786 Shares of PepsiCo, Inc. $PEP

Key Points

• Lindsell Train Ltd reduced its PepsiCo stake by 29.1% in the first quarter, selling 524,786 shares and leaving it with 1,277,185 shares valued at about $198.3 million.
• PepsiCo recently reported better-than-expected quarterly results, with EPS of $1.61 versus the $1.55 estimate and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year.
• The company also raised its quarterly dividend to $1.48 per share from $1.42, implying an annualized yield of about 4.2%. Meanwhile, Wall Street sentiment remains mixed, with analysts averaging a Hold rating and a $166.40 price target.

Lindsell Train Ltd cut its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 29.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,277,185 shares of the company's stock after selling 524,786 shares during the quarter. PepsiCo accounts for about 6.3% of Lindsell Train Ltd's investment portfolio, making the stock its 8th largest holding. Lindsell Train Ltd owned 0.09% of PepsiCo worth $198,334,000 as of its most recent SEC filing.

A number of other large investors also recently made changes to their positions in PEP. Captrust Financial Advisors lifted its position in shares of PepsiCo by 3.6% in the third quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock worth $77,916,000 after buying an additional 19,218 shares during the last quarter. Swiss Life Asset Management Ltd lifted its holdings in PepsiCo by 11.4% in the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company's stock worth $59,600,000 after purchasing an additional 42,335 shares during the last quarter. Murphy Middleton Hinkle & Parker Inc. boosted its position in PepsiCo by 622.3% during the fourth quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock worth $5,110,000 after purchasing an additional 30,674 shares during the period. Allstate Corp grew its holdings in PepsiCo by 108.1% during the fourth quarter. Allstate Corp now owns 104,723 shares of the company's stock valued at $15,030,000 after purchasing an additional 54,405 shares during the last quarter. Finally, National Pension Service raised its position in shares of PepsiCo by 2.5% in the fourth quarter. National Pension Service now owns 3,143,939 shares of the company's stock valued at $451,218,000 after purchasing an additional 77,051 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. BNP Paribas Exane upped their price objective on shares of PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a report on Friday, April 17th. Rothschild & Co Redburn boosted their target price on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. HSBC raised their price target on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research report on Friday, April 17th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. Finally, Evercore upped their price objective on shares of PepsiCo from $165.00 to $170.00 in a research report on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $166.40.

PepsiCo Trading Up 4.3%

Shares of PEP opened at $141.16 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 stock has a market cap of $192.93 billion, a PE ratio of 22.16, a PEG ratio of 2.73 and a beta of 0.36. PepsiCo, Inc. has a 1 year low of $132.96 and a 1 year high of $171.48. The stock has a 50 day simple moving average of $147.24 and a 200-day simple moving average of $151.86.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly 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. The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.PepsiCo's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.48 EPS. On average, sell-side analysts predict that PepsiCo, Inc. will post 8.62 EPS for the current fiscal year.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a dividend of $1.48 per share. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Friday, June 5th. PepsiCo's payout ratio is currently 92.94%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced progress toward its 2030 agriculture goals, highlighting gains in regenerative farming, sustainable sourcing, and livelihoods initiatives, which supports its long-term ESG and supply-chain strategy. PepsiCo Announces Progress Toward 2030 Agriculture Goals
• Positive Sentiment: JPMorgan reaffirmed an Overweight rating on PepsiCo while trimming its price target to $170 from $178, suggesting analysts still see meaningful upside from current levels. JPMorgan Adjusts Price Target on PepsiCo
• Positive Sentiment: Citi also kept a Buy rating on PepsiCo, lowering its target to $170 from $182 ahead of Q2 results, indicating the firm remains constructive on the stock despite slightly softer earnings expectations. Citi Maintains Bullish Outlook on PepsiCo
• Positive Sentiment: Unusually heavy call-option buying in PepsiCo suggests some traders are positioning for a rebound or further upside. Investors Buy Large Volume of PepsiCo Call Options
• Neutral Sentiment: Several reports focused on valuation and price-target commentary, with analysts generally still seeing upside but also acknowledging that earnings growth may be moderating.
• Negative Sentiment: Some coverage noted PepsiCo underperformed peers and highlighted continued investor concern about growth, which can pressure sentiment around the stock. PepsiCo Inc. stock underperforms Monday when compared to competitors
• Negative Sentiment: Erste Group slightly lowered its FY2027 EPS estimate for PepsiCo, reinforcing the view that profit growth could remain limited. MarketBeat PepsiCo coverage

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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