PepsiCo, Inc. $PEP Shares Purchased by ABN Amro Investment Solutions

Key Points

• ABN Amro Investment Solutions increased its PepsiCo stake by 43.5% in Q4, buying 35,424 additional shares and bringing its total holding to 116,937 shares worth about $16.8 million.
• PepsiCo reported better-than-expected Q1 earnings, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion topping estimates; revenue rose 8.5% year over year.
• The company also raised its quarterly dividend to $1.48 per share and authorized a $10 billion share buyback program, signaling management confidence even as analysts remain split, with a consensus rating of Hold.

ABN Amro Investment Solutions boosted its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 43.5% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 116,937 shares of the company's stock after purchasing an additional 35,424 shares during the period. ABN Amro Investment Solutions' holdings in PepsiCo were worth $16,783,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares during the last quarter. State Street Corp boosted its position in PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after buying an additional 1,079,970 shares during the last quarter. Invesco Ltd. boosted its position in PepsiCo by 7.6% in the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock valued at $1,912,476,000 after buying an additional 958,701 shares during the last quarter. Legal & General Group Plc boosted its position in PepsiCo by 1.3% in the 3rd quarter. Legal & General Group Plc now owns 8,902,664 shares of the company's stock valued at $1,250,290,000 after buying an additional 118,286 shares during the last quarter. Finally, Amundi boosted its position in PepsiCo by 30.0% in the 3rd quarter. Amundi now owns 8,641,588 shares of the company's stock valued at $1,207,230,000 after buying an additional 1,995,362 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Stock Performance

Shares of NASDAQ PEP opened at $149.29 on Thursday. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The firm's 50-day moving average price is $154.60 and its two-hundred day moving average price is $152.45. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $171.48. The stock has a market capitalization of $204.05 billion, a P/E ratio of 23.44, a P/E/G ratio of 2.73 and a beta of 0.38.

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

PepsiCo declared that its Board of Directors has initiated a share buyback program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be issued a $1.48 dividend. This is an increase from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Friday, June 5th. PepsiCo's dividend payout ratio is 89.32%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Analysts and market commentary continue to highlight PepsiCo’s portfolio reset, pricing power, and innovation in zero-sugar, functional, and “better-for-you” snacks and drinks as potential growth drivers. Article Title
• Positive Sentiment: PepsiCo India plans to invest Rs 5,700 crore through 2030 to expand capacity, which could support long-term growth in an important international market. Article Title
• Neutral Sentiment: At the annual meeting, shareholders elected David W. Gibbs to the board and rejected proposals for an independent board chair and additional human-rights and animal-welfare reporting, suggesting governance issues remain in focus but are not a major near-term catalyst. Article Title
• Neutral Sentiment: Commentary comparing PepsiCo with Coca-Cola underscores that PEP is working to balance pricing power and distribution scale against margin pressure from higher input and operating costs. Article Title
• Negative Sentiment: Multiple reports say PepsiCo plans to raise prices on some smaller chip bags because of higher production, distribution, and retail expenses in the U.S., which may raise concerns about volume softness if consumers push back. Article Title
• Negative Sentiment: Wells Fargo reportedly cut its price target on PepsiCo to $160, adding to the cautious tone around near-term margins and execution. Article Title

Analysts Set New Price Targets

PEP has been the subject of a number of analyst reports. Barclays upped their price objective on shares of PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research report on Monday, April 20th. The Goldman Sachs Group increased their price target on shares of PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Piper Sandler increased their price target on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research report on Thursday, March 12th. Rothschild & Co Redburn increased their price target on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, PepsiCo currently has a consensus rating of "Hold" and a consensus target price of $170.11.

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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