PepsiCo, Inc. $PEP Shares Sold by STF Management LP

Key Points

• STF Management LP sharply reduced its PepsiCo stake by 67.4% in the fourth quarter, selling 14,033 shares and leaving it with 6,774 shares worth about $972,000.
• Other institutional investors were mixed on PepsiCo, with some adding to positions while hedge funds and institutions still hold a large 73.07% of the company’s shares.
• PepsiCo reported better-than-expected quarterly results, raised its dividend to $1.48 per share, and continues to have a $10 billion share repurchase authorization in place.

STF Management LP trimmed its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 67.4% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 6,774 shares of the company's stock after selling 14,033 shares during the period. PepsiCo comprises 0.9% of STF Management LP's holdings, making the stock its 25th largest position. STF Management LP's holdings in PepsiCo were worth $972,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in PEP. Brighton Jones LLC grew its position in PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock valued at $9,031,000 after buying an additional 6,574 shares during the period. Caxton Associates LLP acquired a new stake in PepsiCo during the first quarter valued at $251,000. Sivia Capital Partners LLC grew its position in PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock valued at $862,000 after buying an additional 3,790 shares during the period. Schnieders Capital Management LLC. grew its holdings in PepsiCo by 10.1% in the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after purchasing an additional 3,502 shares during the period. Finally, Sei Investments Co. grew its holdings in PepsiCo by 45.5% in the second quarter. Sei Investments Co. now owns 536,133 shares of the company's stock valued at $70,789,000 after purchasing an additional 167,707 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Analyst Ratings Changes

PEP has been the topic of several research analyst reports. Wells Fargo & Company raised their price objective on PepsiCo from $154.00 to $165.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. TD Cowen raised their price objective on PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a report on Friday, February 20th. BNP Paribas Exane raised their price objective on PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a report on Friday, April 17th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of PepsiCo from $169.00 to $173.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Finally, Citigroup lifted their target price on shares of PepsiCo from $170.00 to $182.00 and gave the company a "buy" rating in a research report on Wednesday, February 4th. Eight 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, the stock presently has an average rating of "Hold" and an average price target of $170.37.

PepsiCo Stock Performance

Shares of NASDAQ:PEP opened at $149.12 on Friday. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The business's 50 day moving average price is $155.25 and its 200-day moving average price is $152.42. The firm has a market capitalization of $203.81 billion, a PE ratio of 23.41, a P/E/G ratio of 2.73 and a beta of 0.38. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly 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. 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 revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.48 earnings per share. As a group, equities research analysts expect that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The company also recently declared 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. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend is Friday, June 5th. PepsiCo's dividend payout ratio is presently 89.32%.

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

PepsiCo Company 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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