PepsiCo, Inc. $PEP Shares Bought by Allstate Corp

Key Points

• Allstate Corp more than doubled its PepsiCo stake in the fourth quarter, increasing holdings by 108.1% to 104,723 shares valued at about $15.0 million.
• PepsiCo reported better-than-expected quarterly results, posting EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion estimated, with revenue up 8.5% year over year.
• The company also raised its quarterly dividend to $1.48 per share and authorized a $10 billion share repurchase program, while analysts currently rate the stock a consensus Hold.

Allstate Corp grew its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 108.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 104,723 shares of the company's stock after acquiring an additional 54,405 shares during the period. Allstate Corp's holdings in PepsiCo were worth $15,030,000 at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in PEP. Brighton Jones LLC boosted its holdings in shares of PepsiCo by 12.4% in the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock valued at $9,031,000 after buying an additional 6,574 shares during the period. Caxton Associates LLP acquired a new position in shares of PepsiCo in the 1st quarter valued at about $251,000. Sivia Capital Partners LLC boosted its holdings in shares of PepsiCo by 138.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock valued at $862,000 after buying an additional 3,790 shares during the period. Schnieders Capital Management LLC. boosted its holdings in shares of PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after buying an additional 3,502 shares during the period. Finally, Sei Investments Co. boosted its holdings in shares of PepsiCo by 45.5% in the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company's stock valued at $70,789,000 after buying an additional 167,707 shares during the period. 73.07% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on PEP shares. The Goldman Sachs Group boosted their target price on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Argus raised shares of PepsiCo to a "hold" rating in a research note on Tuesday, February 17th. TD Cowen boosted their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a research note on Friday, February 20th. BNP Paribas Exane boosted their target price on shares of PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a research note on Friday, April 17th. Finally, Morgan Stanley lifted their target price on PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research note on Wednesday, February 4th. Eight 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's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $170.11.

PepsiCo Stock Performance

Shares of NASDAQ:PEP opened at $150.57 on Tuesday. The company has a 50 day moving average of $154.00 and a 200-day moving average of $152.57. The firm has a market cap of $205.79 billion, a P/E ratio of 23.64, a P/E/G ratio of 2.73 and a beta of 0.38. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve 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 issued its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. The company 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%. The business's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.48 EPS. As a group, analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be paid a $1.48 dividend. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.9%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio (DPR) is currently 89.32%.

PepsiCo announced that its Board of Directors has authorized a share repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

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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