PepsiCo, Inc. $PEP Shares Bought by Swiss Life Asset Management Ltd

Key Points

• Swiss Life Asset Management increased its PepsiCo stake by 11.4% in the fourth quarter, ending with 415,271 shares valued at about $59.6 million. Institutional ownership in PepsiCo remains high at 73.07%.
• PepsiCo reported strong quarterly results, posting EPS of $1.61 versus expectations of $1.55 and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year, and analysts now expect full-year EPS of 8.63.
• The company also raised its quarterly dividend to $1.48 per share and authorized a $10 billion share buyback. The new dividend implies an annualized yield of about 3.8%.

Swiss Life Asset Management Ltd boosted its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 11.4% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 415,271 shares of the company's stock after buying an additional 42,335 shares during the period. Swiss Life Asset Management Ltd's holdings in PepsiCo were worth $59,600,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. JCIC Asset Management Inc. purchased a new stake in PepsiCo in the third quarter valued at $27,000. MH & Associates Securities Management Corp ADV purchased a new stake in PepsiCo in the fourth quarter valued at $29,000. Imprint Wealth LLC purchased a new stake in PepsiCo in the third quarter valued at $31,000. Strategic Advocates LLC purchased a new stake in PepsiCo in the third quarter valued at $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of PepsiCo in the 4th quarter valued at $33,000. Institutional investors and hedge funds own 73.07% of the company's stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced a new partnership in the UAE’s Future Industries Lab to support SMEs and young Emiratis, reinforcing its innovation and local investment strategy. MoIAT expands Future Industries Lab with new PepsiCo partnership supporting SMEs and young Emiratis
• Positive Sentiment: PepsiCo and TalusAg Renewables announced a low-carbon ammonia agreement, an ESG-oriented move that could improve supply-chain sustainability and appeal to investors focused on emissions reduction. PepsiCo and TalusAg Renewables announce low-carbon ammonia attribute agreement to help accelerate fertilizer decarbonization
• Positive Sentiment: Multiple articles highlighted PepsiCo’s continued investment in China and its focus on international growth, product innovation, and cost discipline, which supports the long-term bull case. PepsiCo to 'continue investing' in Chinese market

Analyst Ratings Changes

PEP has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their price objective on PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Rothschild & Co Redburn boosted their price objective on PepsiCo from $120.00 to $130.00 and gave the company a "sell" rating in a report on Tuesday, February 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. Wells Fargo & Company boosted their price objective on PepsiCo from $154.00 to $165.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. Finally, BNP Paribas Exane boosted their price objective on PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $170.26.

PepsiCo Stock Performance

PEP opened at $154.62 on Monday. PepsiCo, Inc. has a 12 month low of $127.60 and a 12 month high of $171.48. The stock has a market capitalization of $211.33 billion, a price-to-earnings ratio of 24.27, a PEG ratio of 2.83 and a beta of 0.38. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The business has a fifty day moving average price of $157.25 and a 200 day moving average price of $152.50.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. The firm had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.PepsiCo's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.48 EPS. Sell-side analysts expect that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be given a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 annualized dividend and a dividend yield of 3.8%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is currently 89.32%.

PepsiCo declared that its board has initiated a stock buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to purchase up to 4.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its stock is undervalued.

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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