PepsiCo, Inc. $PEP Shares Purchased by Swedbank AB

Key Points

• Swedbank AB increased its PepsiCo stake by 2.6% in the fourth quarter, and several other institutional investors also added to their positions. About 73% of PepsiCo’s stock is now owned by institutional investors and hedge funds.
• PepsiCo’s latest quarterly results beat expectations, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year, and analysts expect full-year EPS of 8.63.
• The company raised its quarterly dividend to $1.48 per share from $1.42 and also has a $10 billion stock buyback program in place. However, analysts currently have a consensus rating of Hold on the stock.

Swedbank AB lifted its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.6% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 813,746 shares of the company's stock after acquiring an additional 20,925 shares during the quarter. Swedbank AB owned 0.06% of PepsiCo worth $116,789,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in PEP. Captrust Financial Advisors increased its position in shares of PepsiCo by 3.6% in the 3rd quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock valued at $77,916,000 after purchasing an additional 19,218 shares during the last quarter. Swiss Life Asset Management Ltd increased its position in shares of PepsiCo by 11.4% in the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company's stock valued at $59,600,000 after purchasing an additional 42,335 shares during the last quarter. Murphy Middleton Hinkle & Parker Inc. increased its position in shares of PepsiCo by 622.3% in the 4th quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock valued at $5,110,000 after purchasing an additional 30,674 shares during the last quarter. Mediolanum International Funds Ltd increased its position in shares of PepsiCo by 19.3% in the 3rd quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock valued at $35,451,000 after purchasing an additional 40,947 shares during the last quarter. Finally, Townsquare Capital LLC increased its position in shares of PepsiCo by 96.5% in the 3rd quarter. Townsquare Capital LLC now owns 40,383 shares of the company's stock valued at $5,671,000 after purchasing an additional 19,829 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Royal Bank Of Canada dropped their target price on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 9th. The Goldman Sachs Group increased their target price on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Argus raised shares of PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Rothschild & Co Redburn increased their target price on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Finally, Evercore increased their target price on shares of PepsiCo from $165.00 to $170.00 in a research report on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $170.11.

PepsiCo Trading Up 1.2%

Shares of PepsiCo stock opened at $150.57 on Friday. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The company has a market capitalization of $205.79 billion, a P/E ratio of 23.64, a PEG ratio of 2.73 and a beta of 0.38. The company's fifty day moving average is $154.17 and its two-hundred day moving average is $152.45.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued 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. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. During the same period last year, the firm posted $1.48 EPS. PepsiCo's revenue for the quarter was up 8.5% on a year-over-year basis. Analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo announced that its board has approved a stock buyback program on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the company to buy up to 4.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

PepsiCo Increases Dividend

The company also recently announced 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. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. This represents a $5.92 annualized dividend and a dividend yield of 3.9%. PepsiCo's dividend payout ratio (DPR) is 89.32%.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo extended and revised its licensing and bottling arrangements with Varun Beverages in India through 2049, while also giving the partner more freedom to pursue non-PepsiCo ventures. The longer-term deal should help protect distribution in a key growth market and reduce partnership uncertainty. Varun Beverages, PepsiCo revise licencing deal
• Positive Sentiment: PepsiCo is also being highlighted by market commentary as a strong growth stock and a defensive blue-chip income name, reinforcing investor interest in the company’s earnings stability and dividend profile. Here's Why PepsiCo (PEP) is a Strong Growth Stock
• Neutral Sentiment: PepsiCo launched new products and initiatives, including a functional ready-to-drink tea and a greenhouse program in Asia-Pacific, which support its innovation story but are unlikely to move the stock on their own. PepsiCo adds functional RTD tea
• Neutral Sentiment: The company is also moving ahead with sustainability and regenerative agriculture efforts, which may help long-term brand positioning but are not immediate earnings catalysts. PepsiCo enters regen ag pact with LDC
• Negative Sentiment: Industry coverage continues to flag margin pressure from higher sugar, packaging and freight costs, along with tariff uncertainty. That backdrop could weigh on profitability for PepsiCo and other soft drink makers if costs stay elevated. 5 Soft Drinks Stocks to Track Amid Margin & Tariff Pressures
• Negative Sentiment: PepsiCo said it will raise prices on some smaller chip bags to offset increased costs. While this may help margins, it can also pressure volume and suggests inflation remains a headwind. Lay’s and Doritos maker to raise prices on small bags of chips

About PepsiCo

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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