PepsiCo, Inc. $PEP Stock Sold by Welch & Forbes LLC

Key Points

• Welch & Forbes cut its PepsiCo stake by 3.2% in the third quarter, selling 12,688 shares and ending the period with 389,837 shares valued at $49.4 million. Other major institutional investors increased their holdings.
• PepsiCo beat quarterly earnings and revenue estimates, with revenue up 5.6% year over year. Analysts’ consensus rating remains Hold, with an average price target of $143.28.
• The company is promoting zero-sugar drinks and functional hydration and renewed KFC supply agreements in eight international markets, while planning about 1,000 North American job cuts and facing new competition in hydration beverages.

Welch & Forbes LLC decreased its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 3.2% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 389,837 shares of the company's stock after selling 12,688 shares during the period. Welch & Forbes LLC's holdings in PepsiCo were worth $49,400,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in PEP. BlackRock Inc. raised its stake in PepsiCo by 2.1% during the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock valued at $16,015,363,000 after buying an additional 2,440,377 shares during the last quarter. State Street Corp lifted its holdings in shares of PepsiCo by 1.7% during the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company's stock valued at $8,179,099,000 after buying an additional 987,582 shares during the period. Bank of America Corp DE lifted its holdings in shares of PepsiCo by 0.6% during the 1st quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock valued at $3,305,146,000 after buying an additional 133,325 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of PepsiCo by 4.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company's stock worth $1,600,114,000 after buying an additional 549,336 shares during the last quarter. Finally, Amundi boosted its stake in shares of PepsiCo by 16.8% in the 1st quarter. Amundi now owns 11,444,671 shares of the company's stock worth $1,777,243,000 after buying an additional 1,647,506 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Consumer stocks, including the consumer-staples sector, were higher late Monday, providing a supportive backdrop for PEP. Read More.
• Positive Sentiment: PepsiCo is emphasizing zero-sugar drinks, flavored sodas and functional hydration to respond to changing preferences and pursue beverage growth. The strategy is supported by reported traction in zero-sugar offerings, though broader demand remains a question. Read More.
• Positive Sentiment: PepsiCo renewed beverage-supply agreements with KFC in eight international markets, retaining an important customer channel outside the U.S. Read More.
• Neutral Sentiment: The company is expanding holiday retail and marketing efforts, including campaigns tied to football. This could support brand visibility, but the article gives no sales impact. Read More.
• Negative Sentiment: PepsiCo plans to cut about 1,000 North American jobs as part of a turnaround and effort to streamline operations. Potential cost savings may help, but the cuts also underscore struggles in a key business region. Read More.
• Negative Sentiment: Poppi’s founders launched Jetty, a hydration brand entering a category that includes PepsiCo’s Gatorade. The new competitor may add pressure in functional beverages, although its near-term effect on PepsiCo is uncertain. Read More.

Analyst Upgrades and Downgrades

A number of analysts recently commented on PEP shares. JPMorgan Chase & Co. reduced their price objective on PepsiCo from $138.00 to $137.00 and set a "neutral" rating for the company in a research report on Friday, October 9th. Weiss Ratings cut PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, September 24th. Jefferies Financial Group reissued a "hold" rating on shares of PepsiCo in a research report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $132.00 price target on shares of PepsiCo in a research note on Friday, October 9th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of PepsiCo in a research report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $143.28.

Insider Buying and Selling at PepsiCo

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

PepsiCo Trading Up 0.4%

Shares of PepsiCo stock opened at $141.88 on Tuesday. The company's fifty day simple moving average is $133.35 and its 200-day simple moving average is $145.72. The stock has a market capitalization of $193.35 billion, a PE ratio of 17.82, a P/E/G ratio of 4.24 and a beta of 0.31. PepsiCo, Inc. has a 1-year low of $123.47 and a 1-year high of $171.48. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.94 and a quick ratio of 0.76.

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, beating analysts' consensus estimates 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 company's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.29 EPS. As a group, equities analysts anticipate that PepsiCo, Inc. will post 8.42 earnings per share for the current year.

About PepsiCo

PepsiCo, Inc is a global food and beverage company that develops, manufactures, markets and distributes a broad range of products. Its portfolio includes snacks such as Lay's, Doritos and Cheetos, as well as beverages including Pepsi, Gatorade and Mountain Dew.

The company was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. Its products are sold in more than 200 countries and territories through retail, food-service and other distribution channels.

PepsiCo is headquartered in Purchase, New York.

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