Nuveen LLC Reduces Holdings in PepsiCo, Inc. $PEP

Key Points

• Nuveen LLC slightly reduced its PepsiCo position in the fourth quarter, trimming its stake by 0.8% to 5.72 million shares valued at about $820.8 million. Despite the sale, institutional investors still own a large majority of the stock.
• PepsiCo continues to attract mixed analyst views, with recent target price increases from JPMorgan and Deutsche Bank, but an overall consensus rating of “Hold.” The stock is being weighed by recent weakness and a valuation that has pulled back from highs.
• The company posted solid quarterly results and raised its dividend, beating earnings and revenue estimates with 8.5% year-over-year revenue growth. PepsiCo also lifted its quarterly dividend to $1.48 per share, implying a 4.1% annual yield.

Nuveen LLC trimmed its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 0.8% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,719,247 shares of the company's stock after selling 48,634 shares during the period. Nuveen LLC owned approximately 0.42% of PepsiCo worth $820,826,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Cypress Capital Management LLC WY raised its holdings in PepsiCo by 8.3% in the fourth quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock valued at $121,000 after acquiring an additional 64 shares in the last quarter. United Bank raised its holdings in PepsiCo by 3.9% in the fourth quarter. United Bank now owns 1,717 shares of the company's stock valued at $246,000 after acquiring an additional 65 shares in the last quarter. Koa Wealth Management LLC raised its holdings in PepsiCo by 0.9% in the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company's stock valued at $1,149,000 after acquiring an additional 68 shares in the last quarter. Tiemann Investment Advisors LLC raised its holdings in PepsiCo by 4.0% in the third quarter. Tiemann Investment Advisors LLC now owns 1,807 shares of the company's stock valued at $254,000 after acquiring an additional 70 shares in the last quarter. Finally, Binnacle Investments Inc raised its holdings in PepsiCo by 33.2% in the second quarter. Binnacle Investments Inc now owns 285 shares of the company's stock valued at $38,000 after acquiring an additional 71 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is expanding its autonomous trucking partnership with Gatik, now using fully driverless freight operations across Texas, Arizona, and Arkansas to help ease labor shortages in hard-to-staff parts of its supply chain. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: PepsiCo is also partnering with Compeer Financial on a strip-till equipment financing pilot that helps farmers adopt soil conservation practices, reinforcing the company’s sustainability image and relationships with agricultural suppliers. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Positive Sentiment: Analyst commentary continues to frame PepsiCo as a long-term growth and dividend holding, with several recent pieces highlighting valuation support and rebound potential. Why PepsiCo (PEP) is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Management is continuing to promote PepsiCo’s women’s sports sponsorship and consumer engagement strategy as a growth driver, which supports the brand narrative but is not an immediate earnings catalyst. BIS: PepsiCo’s Carolyn Braff on women’s sports being a key growth driver
• Neutral Sentiment: Erste Group slightly trimmed its FY2027 EPS estimate for PepsiCo, but the revision was minimal and did not materially change the broader earnings outlook. PepsiCo, Inc. Stock Overview
• Negative Sentiment: The stock remains pressured by investor caution after recent trading weakness and a valuation that has come down from its highs, suggesting the market is waiting for stronger near-term growth or margin improvement. PepsiCo Steps Up Autonomous Freight Use As Valuation Gap Persists

Analyst Ratings Changes

Several research firms recently issued reports on PEP. JPMorgan Chase & Co. upped their price target on shares of PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. Wall Street Zen cut shares of PepsiCo from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Argus raised shares of PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $168.25.

PepsiCo Stock Performance

Shares of PEP opened at $143.73 on Friday. The firm has a 50-day moving average price of $151.32 and a 200 day moving average price of $152.42. The firm has a market capitalization of $196.45 billion, a PE ratio of 22.56, a P/E/G ratio of 2.62 and a beta of 0.35. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The firm had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. PepsiCo's revenue was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.48 EPS. On average, sell-side analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The business 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 $1.48 dividend. The ex-dividend date is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a yield of 4.1%. This is a boost from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is currently 92.94%.

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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