PepsiCo, Inc. $PEP Shares Sold by Sky Investment Group LLC

Key Points

• Sky Investment Group LLC reduced its stake in PepsiCo by 2.6%, owning 73,289 shares worth $9.68 million, making it the firm's 14th largest position.
• PepsiCo reported better-than-expected earnings for the quarter, with an EPS of $2.12, surpassing analysts' estimates of $2.03.
• The company declared a quarterly dividend of $1.4225 per share, with a dividend yield of 4.0%, despite a high payout ratio of 103.64%.

Sky Investment Group LLC decreased its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.6% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 73,289 shares of the company's stock after selling 1,949 shares during the quarter. PepsiCo comprises about 1.7% of Sky Investment Group LLC's portfolio, making the stock its 14th biggest position. Sky Investment Group LLC's holdings in PepsiCo were worth $9,677,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Nova Wealth Management Inc. purchased a new position in shares of PepsiCo during the 1st quarter valued at about $25,000. Elite Financial Inc. acquired a new position in PepsiCo in the 1st quarter worth about $28,000. Sunbeam Capital Management LLC acquired a new position in PepsiCo in the 4th quarter worth about $47,000. MorganRosel Wealth Management LLC acquired a new position in PepsiCo in the 1st quarter worth about $55,000. Finally, Migdal Insurance & Financial Holdings Ltd. acquired a new position in PepsiCo in the 1st quarter worth about $58,000. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Wells Fargo & Company boosted their price objective on PepsiCo from $140.00 to $154.00 and gave the stock an "equal weight" rating in a research note on Friday, July 18th. Bank of America cut their price objective on PepsiCo from $150.00 to $145.00 and set a "neutral" rating for the company in a research note on Friday, July 11th. Barclays increased their price target on PepsiCo from $132.00 to $144.00 and gave the company an "equal weight" rating in a report on Monday, July 21st. Cowen reaffirmed a "hold" rating on shares of PepsiCo in a research note on Thursday, July 17th. Finally, JPMorgan Chase & Co. lowered their price objective on PepsiCo from $150.00 to $139.00 and set a "neutral" rating for the company in a research report on Thursday, July 10th. Four analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $158.60.

PepsiCo Price Performance

Shares of PEP stock traded down $0.10 during midday trading on Tuesday, reaching $140.93. 1,572,485 shares of the company traded hands, compared to its average volume of 8,430,672. The firm's 50 day simple moving average is $144.50 and its two-hundred day simple moving average is $139.87. PepsiCo, Inc. has a 1-year low of $127.60 and a 1-year high of $177.50. The company has a debt-to-equity ratio of 2.12, a current ratio of 0.78 and a quick ratio of 0.60. The firm has a market cap of $192.95 billion, a PE ratio of 25.67, a price-to-earnings-growth ratio of 3.58 and a beta of 0.46.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The company reported $2.12 earnings per share for the quarter, topping analysts' consensus estimates of $2.03 by $0.09. PepsiCo had a net margin of 8.23% and a return on equity of 57.81%. The business had revenue of $22.73 billion during the quarter, compared to analysts' expectations of $22.28 billion. During the same period last year, the company posted $2.28 EPS. The company's revenue was up 1.0% on a year-over-year basis. PepsiCo has set its FY 2025 guidance at 8.038-8.038 EPS. On average, equities research analysts expect that PepsiCo, Inc. will post 8.3 EPS for the current fiscal year.

PepsiCo Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, September 5th will be issued a $1.4225 dividend. The ex-dividend date is Friday, September 5th. This represents a $5.69 dividend on an annualized basis and a yield of 4.0%. PepsiCo's payout ratio is currently 103.64%.

About PepsiCo

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.