PepsiCo, Inc. (NASDAQ:PEP) Shares Purchased by Covington Investment Advisors Inc.

Key Points

• Covington Investment Advisors Inc. increased its stake in PepsiCo by 10.4% during the first quarter, owning 27,614 shares now valued at $4.14 million.
• PepsiCo's latest earnings report showed a revenue increase of 1.0% year-over-year, with earnings per share of $2.12, surpassing estimates.
• The company announced a quarterly dividend of $1.4225 per share, translating to an annual yield of 3.9%, with a payout ratio of 103.64%.

Covington Investment Advisors Inc. raised its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 10.4% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 27,614 shares of the company's stock after buying an additional 2,606 shares during the period. Covington Investment Advisors Inc.'s holdings in PepsiCo were worth $4,140,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in PEP. Vanguard Group Inc. boosted its position in PepsiCo by 1.4% during the first quarter. Vanguard Group Inc. now owns 135,174,252 shares of the company's stock worth $20,268,027,000 after acquiring an additional 1,802,748 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in PepsiCo by 5.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 26,475,241 shares of the company's stock worth $3,969,698,000 after acquiring an additional 1,258,198 shares during the period. Northern Trust Corp boosted its holdings in PepsiCo by 8.7% in the 4th quarter. Northern Trust Corp now owns 16,403,395 shares of the company's stock worth $2,494,300,000 after acquiring an additional 1,306,818 shares during the period. Bank of New York Mellon Corp lifted its holdings in PepsiCo by 0.4% in the 1st quarter. Bank of New York Mellon Corp now owns 14,062,857 shares of the company's stock worth $2,108,585,000 after buying an additional 49,699 shares in the last quarter. Finally, Capital Research Global Investors lifted its holdings in PepsiCo by 7.4% in the 4th quarter. Capital Research Global Investors now owns 12,048,646 shares of the company's stock worth $1,832,116,000 after buying an additional 831,148 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $145.21 on Friday. The company has a quick ratio of 0.60, a current ratio of 0.78 and a debt-to-equity ratio of 2.12. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $179.73. The firm has a 50-day simple moving average of $135.71 and a 200 day simple moving average of $140.65. The company has a market cap of $198.80 billion, a PE ratio of 26.45, a P/E/G ratio of 3.87 and a beta of 0.45.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Thursday, July 17th. The company reported $2.12 earnings per share for the quarter, beating analysts' consensus estimates of $2.03 by $0.09. PepsiCo had a net margin of 8.23% and a return on equity of 57.81%. The business had revenue of $22.73 billion during the quarter, compared to the consensus estimate of $22.28 billion. During the same quarter in the prior year, the firm earned $2.28 EPS. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. On average, sell-side analysts anticipate that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, September 5th will be given a $1.4225 dividend. The ex-dividend date is Friday, September 5th. This represents a $5.69 annualized dividend and a yield of 3.9%. PepsiCo's dividend payout ratio is 103.64%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. UBS Group cut their price objective on shares of PepsiCo from $175.00 to $169.00 and set a "buy" rating on the stock in a report on Friday, April 25th. Citigroup boosted their price objective on shares of PepsiCo from $160.00 to $168.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $148.00 price objective on shares of PepsiCo in a report on Tuesday, June 24th. Barclays upped their target price on shares of PepsiCo from $132.00 to $144.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Finally, Morgan Stanley upped their target price on shares of PepsiCo from $153.00 to $165.00 and gave the company an "equal weight" rating in a research note on Friday, July 18th. One research analyst has rated the stock with a sell rating, fifteen have given a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat.com, PepsiCo has an average rating of "Hold" and an average target price of $158.73.

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.

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