PepsiCo, Inc. $PEP Stake Lowered by Comerica Bank

Key Points

• Comerica Bank trimmed its stake in PepsiCo by 4.5% in Q3, selling 22,652 shares and leaving it with 482,971 shares worth about $67.8 million.
• PepsiCo approved a $10 billion share buyback (up to 4.7% of shares) and declared a quarterly dividend of $1.4225 ($5.69 annualized), implying a ~3.6% yield with an ex-dividend date of March 6.
• PepsiCo beat quarterly estimates with $2.26 EPS (vs. $2.24 expected) and $29.34 billion in revenue (up 5.6% YoY); analysts' consensus rating is a Hold with a $169 target price.

Comerica Bank trimmed its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 4.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 482,971 shares of the company's stock after selling 22,652 shares during the period. Comerica Bank's holdings in PepsiCo were worth $67,828,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. Texas Capital Bank Wealth Management Services Inc increased its holdings in PepsiCo by 77.4% in the third quarter. Texas Capital Bank Wealth Management Services Inc now owns 8,801 shares of the company's stock worth $1,236,000 after buying an additional 3,841 shares during the last quarter. United Financial Planning Group LLC acquired a new stake in PepsiCo in the third quarter valued at approximately $50,000. Zuckerman Investment Group LLC lifted its stake in PepsiCo by 2.9% in the third quarter. Zuckerman Investment Group LLC now owns 19,855 shares of the company's stock valued at $2,788,000 after acquiring an additional 567 shares during the last quarter. Temasek Holdings Private Ltd grew its position in PepsiCo by 107.1% in the third quarter. Temasek Holdings Private Ltd now owns 557,426 shares of the company's stock worth $78,285,000 after acquiring an additional 288,245 shares in the last quarter. Finally, Mcintyre Freedman & Flynn Investment Advisers Inc. increased its stake in shares of PepsiCo by 1.2% during the 3rd quarter. Mcintyre Freedman & Flynn Investment Advisers Inc. now owns 18,839 shares of the company's stock worth $2,646,000 after purchasing an additional 231 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on PEP. BNP Paribas Exane reaffirmed an "outperform" rating on shares of PepsiCo in a research note on Wednesday, February 4th. Piper Sandler increased their target price on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research report on Thursday. HSBC raised their target price on PepsiCo from $152.00 to $175.00 and gave the company a "hold" rating in a report on Thursday, February 5th. Rothschild & Co Redburn upped their price target on PepsiCo from $120.00 to $130.00 and gave the stock a "sell" rating in a research note on Tuesday, February 10th. Finally, Jefferies Financial Group raised their price objective on PepsiCo from $163.00 to $164.00 and gave the company a "hold" rating in a research note on Tuesday, December 9th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, PepsiCo currently has an average rating of "Hold" and a consensus target price of $169.00.

PepsiCo Stock Performance

Shares of PEP opened at $159.88 on Friday. The company has a market capitalization of $218.50 billion, a PE ratio of 26.65, a price-to-earnings-growth ratio of 3.05 and a beta of 0.39. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The company's fifty day moving average price is $156.71 and its 200 day moving average price is $149.68.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Monday, February 2nd. The company reported $2.26 EPS for the quarter, topping analysts' consensus estimates of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The business had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. During the same period in the previous year, the company posted $1.96 earnings per share. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. As a group, analysts expect that PepsiCo, Inc. will post 8.3 earnings per share for the current year.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be given a $1.4225 dividend. This represents a $5.69 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Friday, March 6th. PepsiCo's dividend payout ratio is currently 94.83%.

PepsiCo declared that its board has approved a stock buyback plan on Tuesday, February 3rd that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to purchase up to 4.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

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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