Smith Chas P & Associates PA Cpas Acquires 101,656 Shares of PepsiCo, Inc. $PEP

Key Points

• Smith Chas P & Associates PA Cpas increased its PepsiCo stake by 64.3% in the fourth quarter, buying 101,656 additional shares and bringing its total holding to 259,734 shares worth about $37.3 million.
• PepsiCo reported solid quarterly results, beating expectations with $1.61 EPS versus $1.55 expected and revenue of $19.44 billion, up 8.5% year over year.
• The company also boosted shareholder returns by approving a $10 billion share buyback and raising its quarterly dividend to $1.48 per share, implying a 4.0% annualized yield.

Smith Chas P & Associates PA Cpas raised its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 64.3% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 259,734 shares of the company's stock after purchasing an additional 101,656 shares during the period. PepsiCo makes up about 2.0% of Smith Chas P & Associates PA Cpas' portfolio, making the stock its 23rd largest holding. Smith Chas P & Associates PA Cpas' holdings in PepsiCo were worth $37,277,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in PEP. MH & Associates Securities Management Corp ADV bought a new stake in shares of PepsiCo during the 4th quarter worth approximately $29,000. Imprint Wealth LLC bought a new stake in shares of PepsiCo during the 3rd quarter worth approximately $31,000. Strategic Advocates LLC bought a new stake in shares of PepsiCo during the 3rd quarter worth approximately $33,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of PepsiCo during the 4th quarter worth approximately $33,000. Finally, Highline Wealth Partners LLC lifted its holdings in shares of PepsiCo by 56.3% during the 4th quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock worth $36,000 after acquiring an additional 90 shares during the period. Institutional investors own 73.07% of the company's stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Piper Sandler reaffirmed a Buy rating on PepsiCo with a $181 price target, suggesting analysts still see upside despite rising inflation concerns. Piper Sandler Sticks With Buy Rating on PepsiCo (PEP) Amid Inflation Concerns
• Positive Sentiment: PepsiCo is highlighting its product quality and marketing with new packaging that will carry a “no artificial flavours or colours” label, which could help reinforce consumer trust and support demand for its brands. PepsiCo new packaging to carry 'no artificial flavours or colours' label
• Neutral Sentiment: PepsiCo management said the company is emphasizing “hustle,” curiosity, and adaptability in hiring as AI reshapes talent needs. This is more of a workforce/culture update than an immediate earnings driver. As Amazon And Others Turn To AI Hiring Tools, PepsiCo Doubles Down On 'Hustle' And Curiosity
• Neutral Sentiment: Several analyst and industry pieces noted that PepsiCo’s valuation targets have been adjusted modestly and that the soft drink sector is facing tariff and cost pressures, but these updates were largely incremental rather than a major change in fundamentals. How The PepsiCo (PEP) Story Is Shifting As Analysts Rework Targets And Assumptions
• Negative Sentiment: One market report said PepsiCo stock underperformed peers on Tuesday, reflecting some relative weakness versus competitors even as broader sector themes remained mixed. PepsiCo Inc. stock underperforms Tuesday when compared to competitors

PepsiCo Trading Up 1.4%

NASDAQ:PEP opened at $147.74 on Thursday. The firm's fifty day moving average is $153.52 and its 200-day moving average is $152.63. 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, Inc. has a 52 week low of $127.60 and a 52 week high of $171.48. The firm has a market cap of $201.93 billion, a P/E ratio of 23.19, a P/E/G ratio of 2.64 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same period in the prior year, the firm posted $1.48 EPS. The company's quarterly revenue was up 8.5% on a year-over-year basis. Equities analysts expect that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo announced that its board has approved a share buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its stock is undervalued.

PepsiCo Increases Dividend

The company also recently disclosed 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 represents a $5.92 dividend on an annualized basis and a dividend yield of 4.0%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is currently 89.32%.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. BNP Paribas Exane upped their price target on shares of PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a report on Friday, April 17th. Argus upgraded shares of PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Morgan Stanley upped their price objective on shares of PepsiCo from $165.00 to $180.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. UBS Group lowered their price objective on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Finally, TD Cowen upped their price objective on shares of PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research report on Friday, February 20th. Eight research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $170.11.

PepsiCo Company 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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