National Pension Service Purchases 77,051 Shares of PepsiCo, Inc. $PEP

Key Points

• National Pension Service increased its PepsiCo stake by 2.5% in the fourth quarter, buying 77,051 more shares and bringing its total holding to 3,143,939 shares valued at about $451.2 million.
• PepsiCo reported solid quarterly results, with EPS of $1.61 beating estimates and revenue of $19.44 billion topping expectations; revenue also rose 8.5% year over year.
• The company is returning more cash to shareholders through a 4% dividend hike to $1.48 per share and a $10 billion share buyback authorization, even as some analysts remain mixed on the stock.

National Pension Service raised its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.5% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 3,143,939 shares of the company's stock after buying an additional 77,051 shares during the period. National Pension Service owned about 0.23% of PepsiCo worth $451,218,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the stock. Inspire Trust Co. N.A. grew its position in shares of PepsiCo by 10.0% in the 4th quarter. Inspire Trust Co. N.A. now owns 33,000 shares of the company's stock valued at $4,736,000 after buying an additional 3,000 shares during the last quarter. Rothschild Investment LLC grew its position in shares of PepsiCo by 4.1% in the 4th quarter. Rothschild Investment LLC now owns 19,314 shares of the company's stock valued at $2,772,000 after buying an additional 760 shares during the last quarter. Moors & Cabot Inc. grew its position in shares of PepsiCo by 0.6% in the 4th quarter. Moors & Cabot Inc. now owns 104,211 shares of the company's stock valued at $14,956,000 after buying an additional 575 shares during the last quarter. Intech Investment Management LLC grew its position in shares of PepsiCo by 72.8% in the 4th quarter. Intech Investment Management LLC now owns 114,559 shares of the company's stock valued at $16,442,000 after buying an additional 48,260 shares during the last quarter. Finally, Houlihan Financial Resource Group Ltd. bought a new stake in shares of PepsiCo in the 4th quarter valued at about $453,000. Institutional investors own 73.07% of the company's stock.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo recently boosted its quarterly dividend by 4% to $1.48 per share, a signal of confidence in cash flow and shareholder returns. The company was also highlighted as one of the best dividend-paying beverage stocks to buy now. Here is Why PepsiCo (PEP) is Among the Best Dividend-Paying Beverage Stocks to Buy Now
• Positive Sentiment: Piper Sandler reiterated a Buy rating on PepsiCo with a $181 price target, suggesting upside from current levels even as investors weigh inflation headwinds. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Neutral Sentiment: PepsiCo and the PepsiCo Foundation announced several sustainability and agriculture initiatives, including support for young European farmers and a low-carbon fertilizer alliance, which may help long-term brand positioning but is unlikely to move the stock immediately. Future Harvest: The European program tackling the decline in generational renewal in farming
• Neutral Sentiment: Reports about new packaging labels, AI hiring priorities, and PepsiCo’s role in APAC sports sponsorship mostly reflect ongoing operational and marketing trends rather than a direct earnings catalyst. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Negative Sentiment: Recent trading has shown PepsiCo stock slipping as the broader market rose, with investors still concerned about inflation pressures and margin risk for a consumer staples company facing higher input costs. PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

PepsiCo Stock Down 1.0%

Shares of PepsiCo stock opened at $146.29 on Friday. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The stock's 50-day moving average is $153.31 and its 200 day moving average is $152.66. The firm has a market cap of $199.94 billion, a price-to-earnings ratio of 22.97, a PEG ratio of 2.68 and a beta of 0.38.

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 company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the prior year, the company earned $1.48 EPS. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. Equities research analysts anticipate that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo declared that its board has authorized a share repurchase program on Tuesday, February 3rd that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 4.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its shares are undervalued.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio is currently 89.32%.

Analyst Upgrades and Downgrades

A number of research firms have commented on PEP. The Goldman Sachs Group upped their price target on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Argus upgraded PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. UBS Group reduced their price target on PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. Finally, Wells Fargo & Company cut their target price on PepsiCo from $165.00 to $160.00 and set an "equal weight" rating on the stock in a research report on Monday, May 18th. Eight research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $170.11.

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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