PepsiCo, Inc. $PEP Shares Sold by Focused Investors LLC

Key Points

• Focused Investors LLC cut its PepsiCo stake by 15.9% in the third quarter, selling 154,700 shares; it still held 817,950 shares valued at about $103.7 million.
• PepsiCo beat quarterly estimates, reporting EPS of $2.34 versus $2.29 expected and revenue of $25.27 billion versus $24.95 billion; revenue grew 5.6% year over year.
• Analysts’ consensus rating was Hold, with an average price target of $143.28. Recent target cuts included TD Cowen’s reduction to $133 and Barclays’ reduction to $126.

Focused Investors LLC lessened its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 15.9% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 817,950 shares of the company's stock after selling 154,700 shares during the quarter. PepsiCo makes up 4.3% of Focused Investors LLC's holdings, making the stock its 10th biggest position. Focused Investors LLC owned about 0.06% of PepsiCo worth $103,651,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in PEP. Wilkerson Advisory Group LLC grew its position in shares of PepsiCo by 3.3% in the 1st quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock valued at $317,000 after acquiring an additional 66 shares during the period. Pittenger & Anderson Inc. raised its holdings in shares of PepsiCo by 0.3% in the 1st quarter. Pittenger & Anderson Inc. now owns 24,895 shares of the company's stock valued at $3,866,000 after purchasing an additional 69 shares during the period. Cohen Investment Advisors LLC raised its holdings in shares of PepsiCo by 1.9% in the 1st quarter. Cohen Investment Advisors LLC now owns 3,770 shares of the company's stock valued at $585,000 after purchasing an additional 71 shares during the period. Bogart Wealth LLC lifted its stake in PepsiCo by 2.1% in the 1st quarter. Bogart Wealth LLC now owns 3,526 shares of the company's stock valued at $548,000 after purchasing an additional 72 shares during the last quarter. Finally, Centerpoint Advisors LLC lifted its stake in PepsiCo by 4.1% in the 2nd quarter. Centerpoint Advisors LLC now owns 1,918 shares of the company's stock valued at $260,000 after purchasing an additional 75 shares during the last quarter. 73.07% of the stock is owned by institutional investors.

PepsiCo Stock Down 2.2%

Shares of PEP opened at $137.27 on Wednesday. The firm has a market cap of $187.06 billion, a P/E ratio of 17.24, a price-to-earnings-growth ratio of 4.19 and a beta of 0.31. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. PepsiCo, Inc. has a 52 week low of $123.47 and a 52 week high of $171.48. The firm's 50-day simple moving average is $133.28 and its 200 day simple moving average is $145.82.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.05. The firm had revenue of $25.27 billion during the quarter, compared to the consensus estimate of $24.95 billion. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the business posted $2.29 earnings per share. On average, analysts forecast that PepsiCo, Inc. will post 8.39 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Sanford C. Bernstein reiterated a "market perform" rating on shares of PepsiCo in a report on Friday, October 9th. Morgan Stanley set a $145.00 price objective on PepsiCo in a research note on Friday, October 9th. TD Cowen cut their price objective on PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a research report on Monday, September 28th. Barclays dropped their price target on PepsiCo from $133.00 to $126.00 and set an "equal weight" rating on the stock in a research note on Monday, October 12th. Finally, Citigroup reaffirmed a "buy" rating on shares of PepsiCo in a report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $143.28.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed and expanded its long-term beverage partnership with Taco Bell, retaining exclusive beverage rights and broadening distribution of products including Mountain Dew Baja Blast. Plans for new functional and energy drinks could create additional opportunities across the partnership. What Is PepsiCo (PEP) Gaining From Its Expanded Beverage Partnership?
• Positive Sentiment: PepsiCo ranked 10th on a hedge-fund-based list of undervalued dividend-growth stocks, with 68 tracked funds holding bullish positions. This supports the view that some investors see value and income potential, though it is not a near-term business catalyst. PepsiCo Remains a Popular Choice for Dividend Investors
• Neutral Sentiment: Coverage of PepsiCo’s functional-food strategy signals a focus on growth beyond traditional snacks and beverages, but the article information provided does not specify initiatives or expected financial impact. Inside PepsiCo’s functional food strategy
• Neutral Sentiment: Costco has brought back a rare PepsiCo seasonal soda that fans reportedly stockpile. The return may support interest in the product, but the article details provided do not indicate a material sales impact. Costco just brought back the rare PepsiCo seasonal soda fans stockpile for emergencies
• Negative Sentiment: A comparison article focuses on Coca-Cola’s stock having outpaced PepsiCo, highlighting relative performance weakness that could weigh on investor sentiment toward PEP. How Did Coca-Cola Stock Leave PepsiCo Behind?

Insider Buying and Selling at PepsiCo

In other PepsiCo news, CEO Ramon Laguarta sold 30,000 shares of the company's stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total value of $4,053,900.00. Following the transaction, the chief executive officer directly owned 491,645 shares of the company's stock, valued at $66,435,988.85. This represents a 5.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Robert Pohlad acquired 184,646 shares of the stock in a transaction on Wednesday, October 14th. The shares were purchased at an average price of $128.28 per share, for a total transaction of $23,686,388.88. Following the transaction, the director directly owned 433,009 shares in the company, valued at approximately $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.12% of the company's stock.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

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