PepsiCo, Inc. $PEP Holdings Cut by AEGON ASSET MANAGEMENT UK Plc

Key Points

• AEGON Asset Management UK cut its PepsiCo stake by 8.8% in the third quarter, selling 43,510 shares and retaining 452,128 shares worth about $57.3 million.
• PepsiCo beat quarterly earnings and revenue estimates, reporting $2.34 per share and $25.27 billion in revenue, up 5.6% year over year.
• Analyst sentiment was mostly cautious: PepsiCo carries a consensus “Hold” rating, and several firms lowered their price targets. The company also plans to cut about 1,000 North American jobs as it works to streamline operations.

AEGON ASSET MANAGEMENT UK Plc trimmed its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 8.8% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 452,128 shares of the company's stock after selling 43,510 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in PepsiCo were worth $57,294,000 at the end of the most recent quarter.

Other institutional investors have also recently modified their holdings of the company. Texas Bank & Trust Co increased its holdings in PepsiCo by 4.1% in the 3rd quarter. Texas Bank & Trust Co now owns 7,074 shares of the company's stock worth $896,000 after buying an additional 280 shares in the last quarter. Vestor Capital LLC boosted its holdings in PepsiCo by 185.8% in the third quarter. Vestor Capital LLC now owns 2,787 shares of the company's stock worth $353,000 after purchasing an additional 1,812 shares during the last quarter. Kestra Investment Management LLC boosted its holdings in PepsiCo by 19.0% in the third quarter. Kestra Investment Management LLC now owns 6,100 shares of the company's stock worth $773,000 after purchasing an additional 976 shares during the last quarter. Fulcrum Asset Management LLP grew its position in PepsiCo by 30.6% in the 3rd quarter. Fulcrum Asset Management LLP now owns 1,085 shares of the company's stock worth $140,000 after purchasing an additional 254 shares during the period. Finally, Allspring Global Investments Holdings LLC raised its stake in PepsiCo by 1.0% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 152,697 shares of the company's stock valued at $19,179,000 after buying an additional 1,457 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Consumer stocks, including the consumer-staples sector, were higher late Monday, providing a supportive backdrop for PEP. Read More.
• Positive Sentiment: PepsiCo is emphasizing zero-sugar drinks, flavored sodas and functional hydration to respond to changing preferences and pursue beverage growth. The strategy is supported by reported traction in zero-sugar offerings, though broader demand remains a question. Read More.
• Positive Sentiment: PepsiCo renewed beverage-supply agreements with KFC in eight international markets, retaining an important customer channel outside the U.S. Read More.
• Neutral Sentiment: The company is expanding holiday retail and marketing efforts, including campaigns tied to football. This could support brand visibility, but the article gives no sales impact. Read More.
• Negative Sentiment: PepsiCo plans to cut about 1,000 North American jobs as part of a turnaround and effort to streamline operations. Potential cost savings may help, but the cuts also underscore struggles in a key business region. Read More.
• Negative Sentiment: Poppi’s founders launched Jetty, a hydration brand entering a category that includes PepsiCo’s Gatorade. The new competitor may add pressure in functional beverages, although its near-term effect on PepsiCo is uncertain. Read More.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on PEP shares. Barclays lowered their price target on PepsiCo from $133.00 to $126.00 and set an "equal weight" rating on the stock in a report on Monday, October 12th. Weiss Ratings lowered PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, September 24th. Wells Fargo & Company reduced their price objective on PepsiCo from $140.00 to $135.00 and set an "equal weight" rating for the company in a research report on Monday, October 5th. Royal Bank Of Canada lowered their target price on PepsiCo from $161.00 to $150.00 and set a "sector perform" rating on the stock in a report on Tuesday, October 6th. Finally, JPMorgan Chase & Co. dropped their target price on PepsiCo from $138.00 to $137.00 and set a "neutral" rating on the stock in a research report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, PepsiCo currently has an average rating of "Hold" and an average price target of $143.28.

Insiders Place Their Bets

In other news, Director Robert Pohlad acquired 184,646 shares of PepsiCo stock in a transaction dated Wednesday, October 14th. The stock was purchased at an average cost of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the purchase, the director directly owned 433,009 shares in the company, valued at approximately $55,546,394.52. This trade represents a 74.35% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ramon Laguarta sold 30,000 shares of PepsiCo stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the transaction, the chief executive officer owned 491,645 shares in the company, valued at approximately $66,435,988.85. This trade represents a 5.75% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.12% of the company's stock.

PepsiCo Stock Performance

NASDAQ:PEP opened at $141.88 on Tuesday. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. The stock has a 50-day simple moving average of $133.35 and a two-hundred day simple moving average of $145.72. The firm has a market capitalization of $193.35 billion, a PE ratio of 16.93, a P/E/G ratio of 4.24 and a beta of 0.31. PepsiCo, Inc. has a 52-week low of $123.47 and a 52-week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 EPS for the quarter, topping the consensus estimate of $2.29 by $0.05. The firm had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.29 earnings per share. Analysts forecast that PepsiCo, Inc. will post 8.42 EPS for the current year.

PepsiCo Profile

PepsiCo, Inc is a global food and beverage company that develops, manufactures, markets and distributes a broad range of products. Its portfolio includes snacks such as Lay's, Doritos and Cheetos, as well as beverages including Pepsi, Gatorade and Mountain Dew.

The company was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. Its products are sold in more than 200 countries and territories through retail, food-service and other distribution channels.

PepsiCo is headquartered in Purchase, New York.

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