PepsiCo, Inc. $PEP Shares Sold by Cullen Frost Bankers Inc.

Key Points

• Cullen Frost Bankers Inc. cut its PepsiCo stake by 11.7% in the fourth quarter, selling 11,515 shares and leaving it with 87,255 shares worth about $12.5 million.
• PepsiCo recently reported better-than-expected quarterly results, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion estimated. Quarterly revenue rose 8.5% year over year.
• The company boosted its quarterly dividend to $1.48 per share from $1.42 and maintained a $10 billion share buyback authorization, while analysts currently rate the stock a consensus Hold with an average price target of $170.11.

Cullen Frost Bankers Inc. trimmed its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 11.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 87,255 shares of the company's stock after selling 11,515 shares during the period. Cullen Frost Bankers Inc.'s holdings in PepsiCo were worth $12,523,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. MH & Associates Securities Management Corp ADV acquired a new stake in shares of PepsiCo in the fourth quarter worth approximately $29,000. Imprint Wealth LLC acquired a new position in PepsiCo in the 3rd quarter valued at $31,000. Mowery & Schoenfeld Wealth Management LLC purchased a new position in PepsiCo in the 4th quarter valued at $33,000. Strategic Advocates LLC acquired a new stake in PepsiCo during the 3rd quarter worth $33,000. Finally, Highline Wealth Partners LLC grew its holdings in shares of PepsiCo by 56.3% during the fourth quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock worth $36,000 after buying an additional 90 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo Trading Down 0.7%

Shares of PepsiCo stock opened at $149.29 on Thursday. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week 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 firm has a market capitalization of $204.05 billion, a price-to-earnings ratio of 23.44, a PEG ratio of 2.73 and a beta of 0.38. The stock has a 50 day moving average of $154.60 and a 200 day moving average of $152.45.

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

PepsiCo Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be paid a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a yield of 4.0%. 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 payout ratio is 89.32%.

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

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on PEP shares. Royal Bank Of Canada lowered their price target 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. TD Cowen raised their target price on shares of PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research note on Friday, February 20th. Deutsche Bank Aktiengesellschaft boosted their target price on PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a report on Friday, April 17th. HSBC lifted their price objective on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a research report on Friday, April 17th. Finally, Wells Fargo & Company cut their target price on PepsiCo from $165.00 to $160.00 and set an "equal weight" rating for the company in a research note on Monday. Eight research 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's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $170.11.

Key Stories Impacting PepsiCo

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

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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