PepsiCo, Inc. $PEP Stake Lessened by State Street Corp

Key Points

• State Street Corp slightly reduced its PepsiCo stake by 0.2% in the fourth quarter, but still held about 4.35% of the company worth roughly $8.61 billion.
• PepsiCo posted solid quarterly results, with EPS of $1.61 beating estimates and revenue of $19.44 billion also topping expectations, while revenue rose 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share from $1.42, lifting the annualized payout to $5.92 and the dividend yield to about 4.1%.

State Street Corp trimmed its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 0.2% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 59,392,615 shares of the company's stock after selling 107,204 shares during the quarter. State Street Corp owned approximately 4.35% of PepsiCo worth $8,607,430,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also made changes to their positions in the company. Swiss RE Ltd. bought a new stake in shares of PepsiCo in the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new stake in shares of PepsiCo in the 4th quarter valued at approximately $29,000. Imprint Wealth LLC bought a new stake in shares of PepsiCo in the 3rd quarter valued at approximately $31,000. Strategic Advocates LLC bought a new stake in shares of PepsiCo in the 3rd quarter valued at approximately $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of PepsiCo in the 4th quarter valued at approximately $33,000. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Trading Up 0.4%

NASDAQ:PEP opened at $144.27 on Friday. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48. The stock has a market cap of $197.18 billion, a price-to-earnings ratio of 22.65, a PEG ratio of 2.60 and a beta of 0.35. The business has a fifty day moving average of $151.11 and a 200-day moving average of $152.37. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results 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 return on equity of 56.61% and a net margin of 9.15%.The company had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. During the same quarter in the prior year, the business posted $1.48 earnings per share. The company's revenue for the quarter was up 8.5% compared to the same quarter last year. Equities analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo Increases Dividend

The firm 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. The ex-dividend date of this dividend is Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. PepsiCo's dividend payout ratio (DPR) is currently 92.94%.

Analyst Ratings Changes

A number of brokerages recently commented on PEP. UBS Group lowered their price objective on PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Wells Fargo & Company lowered their price objective on PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a research note on Friday, June 5th. Barclays upped their price objective on PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a research note on Monday, April 20th. Sanford C. Bernstein began coverage on PepsiCo in a research note on Thursday. They set a "market perform" rating and a $143.00 price objective for the company. Finally, Rothschild & Co Redburn upped their price objective on PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $167.35.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo NASDAQ: PEP Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

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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