Securian Asset Management Inc. Decreases Holdings in PepsiCo, Inc. $PEP

Key Points

• Securian Asset Management cut its PepsiCo stake by 43.8% in the fourth quarter, leaving it with 37,180 shares valued at about $5.34 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 and revenue of $19.44 billion, both ahead of analyst estimates and up year over year.
• The company raised its quarterly dividend to $1.48 per share and also authorized a $10 billion share repurchase program, signaling confidence in its cash flow and valuation.

Securian Asset Management Inc. trimmed its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 43.8% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 37,180 shares of the company's stock after selling 28,937 shares during the period. Securian Asset Management Inc.'s holdings in PepsiCo were worth $5,336,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ABN AMRO Bank N.V. boosted its position in PepsiCo by 27.0% in the 4th quarter. ABN AMRO Bank N.V. now owns 13,886 shares of the company's stock valued at $1,987,000 after buying an additional 2,954 shares during the last quarter. Osprey Private Wealth LLC raised its stake in PepsiCo by 32.4% during the fourth quarter. Osprey Private Wealth LLC now owns 38,855 shares of the company's stock worth $5,576,000 after acquiring an additional 9,505 shares during the period. Income Insurance Ltd acquired a new stake in PepsiCo during the fourth quarter worth about $590,000. D Orazio & Associates Inc. raised its stake in PepsiCo by 23.4% during the fourth quarter. D Orazio & Associates Inc. now owns 4,469 shares of the company's stock worth $641,000 after acquiring an additional 847 shares during the period. Finally, Bryn Mawr Trust Advisors LLC raised its stake in PepsiCo by 0.6% during the fourth quarter. Bryn Mawr Trust Advisors LLC now owns 53,544 shares of the company's stock worth $7,685,000 after acquiring an additional 320 shares during the period. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Price Performance

PepsiCo stock opened at $154.62 on Monday. The company has a market capitalization of $211.33 billion, a P/E ratio of 24.27, a P/E/G ratio of 2.83 and a beta of 0.38. The firm's fifty day simple moving average is $157.25 and its 200-day simple moving average is $152.50. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. 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 announced its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. The firm had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.48 EPS. Sell-side analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a $1.48 dividend. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. This represents a $5.92 annualized dividend and a yield of 3.8%. PepsiCo's payout ratio is 89.32%.

PepsiCo announced that its board has initiated a stock repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages have commented on PEP. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research note on Wednesday, April 8th. UBS Group reduced their target price on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a report on Tuesday, April 7th. Piper Sandler raised their target price on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a report on Thursday, March 12th. BNP Paribas Exane raised their price objective on shares of PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a research note on Friday, April 17th. Finally, JPMorgan Chase & Co. raised their price objective on shares of PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a research note on Friday, April 17th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given 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 $170.26.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced a new partnership in the UAE’s Future Industries Lab to support SMEs and young Emiratis, reinforcing its innovation and local investment strategy. MoIAT expands Future Industries Lab with new PepsiCo partnership supporting SMEs and young Emiratis
• Positive Sentiment: PepsiCo and TalusAg Renewables announced a low-carbon ammonia agreement, an ESG-oriented move that could improve supply-chain sustainability and appeal to investors focused on emissions reduction. PepsiCo and TalusAg Renewables announce low-carbon ammonia attribute agreement to help accelerate fertilizer decarbonization
• Positive Sentiment: Multiple articles highlighted PepsiCo’s continued investment in China and its focus on international growth, product innovation, and cost discipline, which supports the long-term bull case. PepsiCo to 'continue investing' in Chinese market

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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