Lombard Odier Asset Management Switzerland SA Boosts Stake in PepsiCo, Inc. $PEP

Key Points

• Lombard Odier Asset Management Switzerland SA increased its PepsiCo stake by 11.7% in the fourth quarter, ending with 70,689 shares valued at about $10.1 million.
• PepsiCo recently reported better-than-expected quarterly results, with earnings per share of $1.61 versus $1.55 expected and revenue of $19.44 billion, up 8.5% from a year earlier.
• The company raised its quarterly dividend to $1.48 per share, marking its 54th consecutive annual dividend increase and implying a 4.1% annualized yield.

Lombard Odier Asset Management Switzerland SA raised its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 11.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 70,689 shares of the company's stock after buying an additional 7,400 shares during the quarter. Lombard Odier Asset Management Switzerland SA's holdings in PepsiCo were worth $10,145,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in PEP. Swiss RE Ltd. purchased a new position in PepsiCo in the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV purchased a new position in PepsiCo in the 4th quarter worth approximately $29,000. Imprint Wealth LLC purchased a new position in PepsiCo in the 3rd quarter worth approximately $31,000. Mowery & Schoenfeld Wealth Management LLC purchased a new position in PepsiCo in the 4th quarter worth approximately $33,000. Finally, Evolution Wealth Management Inc. grew its stake in PepsiCo by 47.8% in the 4th quarter. Evolution Wealth Management Inc. now owns 232 shares of the company's stock worth $33,000 after buying an additional 75 shares in the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on PEP. HSBC increased their price objective 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 reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. Piper Sandler reduced their price objective on PepsiCo from $181.00 to $178.00 and set an "overweight" rating on the stock in a research report on Friday. BNP Paribas Exane increased their price objective on PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a research report on Friday, April 17th. Finally, Sanford C. Bernstein began coverage on shares of PepsiCo in a report on Thursday, June 11th. They set a "market perform" rating and a $143.00 target price on the stock. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $167.35.

PepsiCo Price Performance

PEP opened at $146.12 on Wednesday. The stock's 50 day simple moving average is $150.68 and its 200 day simple moving average is $152.40. 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, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48. The firm has a market cap of $199.71 billion, a price-to-earnings ratio of 22.94, a PEG ratio of 2.65 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $18.89 billion. During the same period last year, the company earned $1.48 EPS. PepsiCo's revenue for the quarter was up 8.5% compared to the same quarter last year. As a group, analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be issued a $1.48 dividend. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a yield of 4.1%. PepsiCo's payout ratio is 92.94%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced its 54th consecutive annual dividend increase, reinforcing its appeal as a defensive, income-generating stock at a time when Treasury yields are elevated. PepsiCo’s 3.9% Yield Is a Safe-Haven Masterclass
• Positive Sentiment: PepsiCo debuted a new limited-edition soda, which could help drive short-term consumer interest and support beverage sales. PepsiCo just debuted a new limited-edition soda that's guaranteed to sell out
• Positive Sentiment: PepsiCo continues to highlight future growth initiatives, including experiential drinks and regenerative farming partnerships, which suggest management is still investing in new revenue streams. PepsiCo Targets Experiential Drinks And Regenerative Farming For Future Growth
• Neutral Sentiment: PepsiCo senior director Maneesha Khanna stepped down after 13 years; this looks like a personnel change rather than a material business event. PepsiCo Senior Director Maneesha Khanna steps down after 13 years
• Neutral Sentiment: PepsiCo was mentioned in articles about broader S&P 500 ideas and sustainability events, but those items do not appear to change the company’s near-term fundamentals. Sustainability LIVE Announces Final Week to Register for The Leadership Summit
• Negative Sentiment: Piper Sandler lowered its price target on PepsiCo, which can weigh on sentiment by signaling a more cautious outlook for the stock’s upside. PepsiCo (PEP) Price Target Lowered at Piper Sandler. Here is Why

PepsiCo 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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