PepsiCo, Inc. $PEP Shares Acquired by Morgan Dempsey Capital Management LLC

Key Points

• Morgan Dempsey Capital Management dramatically increased its PepsiCo stake in the fourth quarter, raising holdings by 37,868.5% to 20,503 shares valued at about $2.97 million.
• PepsiCo remains heavily owned by institutions, with hedge funds and asset managers holding about 73.07% of the company, and large players like Vanguard, State Street, Geode, and Charles Schwab all adding shares.
• The company recently beat quarterly expectations with $1.61 EPS on $19.44 billion in revenue and also raised its quarterly dividend to $1.48 per share, implying a 4.1% annualized yield.

Morgan Dempsey Capital Management LLC grew its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 37,868.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 20,503 shares of the company's stock after acquiring an additional 20,449 shares during the period. Morgan Dempsey Capital Management LLC's holdings in PepsiCo were worth $2,972,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of PepsiCo by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after acquiring an additional 1,612,652 shares in the last quarter. State Street Corp grew its stake in shares of PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of PepsiCo by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after acquiring an additional 295,955 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of PepsiCo in the fourth quarter worth $3,018,813,000. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analyst Weigh In

PEP has been the subject of several research reports. Deutsche Bank Aktiengesellschaft boosted their price target on shares of PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Wall Street Zen downgraded shares of PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Royal Bank Of Canada decreased their price objective on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research report on Thursday, April 9th. Barclays lifted their price objective on shares of PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research report on Monday, April 20th. Finally, Rothschild & Co Redburn lifted their price objective on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo has an average rating of "Hold" and an average price target of $167.35.

PepsiCo Price Performance

PepsiCo stock opened at $144.27 on Monday. The stock has a market cap of $197.18 billion, a P/E ratio of 22.65, a price-to-earnings-growth ratio of 2.61 and a beta of 0.35. The company has a fifty day simple moving average of $151.11 and a 200-day simple moving average of $152.41. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. During the same period in the previous year, the company earned $1.48 EPS. The company's revenue for the quarter was up 8.5% on a year-over-year basis. Equities analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo Increases Dividend

The business also recently declared 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. 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. The ex-dividend date of this dividend is Friday, June 5th. PepsiCo's dividend payout ratio is presently 92.94%.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo NASDAQ: PEP Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

PepsiCo Company 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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