PepsiCo, Inc. $PEP Shares Sold by Russell Investments Group Ltd.

Key Points

• Russell Investments Group Ltd. cut its PepsiCo stake by 9.8% in the fourth quarter, selling 154,939 shares and leaving it with 1,426,931 shares valued at about $204.8 million.
• PepsiCo recently raised its quarterly dividend to $1.48 per share, marking its 54th straight annual dividend increase and implying a 4.1% annualized yield.
• Wall Street sentiment remains mixed: several firms trimmed price targets, and PepsiCo now has an overall Hold rating with an average target price of $167.35, even after a better-than-expected quarterly earnings report.

Russell Investments Group Ltd. trimmed its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 9.8% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,426,931 shares of the company's stock after selling 154,939 shares during the quarter. Russell Investments Group Ltd. owned approximately 0.10% of PepsiCo worth $204,844,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the stock. Swiss RE Ltd. acquired a new stake in shares of PepsiCo in the fourth quarter worth $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in shares of PepsiCo in the fourth quarter worth $29,000. Imprint Wealth LLC acquired a new stake in shares of PepsiCo in the third quarter worth $31,000. Strategic Advocates LLC acquired a new stake in shares of PepsiCo in the third quarter worth $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of PepsiCo in the fourth quarter worth $33,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced its 54th consecutive annual dividend increase, reinforcing its appeal as a defensive, income-generating stock at a time when Treasury yields are elevated. PepsiCo’s 3.9% Yield Is a Safe-Haven Masterclass
• Positive Sentiment: PepsiCo debuted a new limited-edition soda, which could help drive short-term consumer interest and support beverage sales. PepsiCo just debuted a new limited-edition soda that's guaranteed to sell out
• Positive Sentiment: PepsiCo continues to highlight future growth initiatives, including experiential drinks and regenerative farming partnerships, which suggest management is still investing in new revenue streams. PepsiCo Targets Experiential Drinks And Regenerative Farming For Future Growth
• Neutral Sentiment: PepsiCo senior director Maneesha Khanna stepped down after 13 years; this looks like a personnel change rather than a material business event. PepsiCo Senior Director Maneesha Khanna steps down after 13 years
• Neutral Sentiment: PepsiCo was mentioned in articles about broader S&P 500 ideas and sustainability events, but those items do not appear to change the company’s near-term fundamentals. Sustainability LIVE Announces Final Week to Register for The Leadership Summit
• Negative Sentiment: Piper Sandler lowered its price target on PepsiCo, which can weigh on sentiment by signaling a more cautious outlook for the stock’s upside. PepsiCo (PEP) Price Target Lowered at Piper Sandler. Here is Why

Wall Street Analyst Weigh In

PEP has been the subject of a number of research reports. Royal Bank Of Canada reduced their price objective on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research report on Thursday, April 9th. Wells Fargo & Company reduced their price objective on PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Wall Street Zen cut PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Piper Sandler reduced their price target on PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on PepsiCo from $169.00 to $173.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo presently has an average rating of "Hold" and an average target price of $167.35.

PepsiCo Trading Down 0.1%

Shares of PepsiCo stock opened at $146.12 on Wednesday. The stock has a market capitalization of $199.71 billion, a P/E ratio of 22.94, a price-to-earnings-growth ratio of 2.65 and a beta of 0.35. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The company has a 50-day simple moving average of $150.68 and a 200 day simple moving average of $152.40.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The firm 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 business's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period last year, the company earned $1.48 EPS. Research analysts expect that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm 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 of this dividend is Friday, June 5th. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. PepsiCo's payout ratio is 92.94%.

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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