Sterling Capital Management LLC Sells 8,406 Shares of PepsiCo, Inc. $PEP

Key Points

• Sterling Capital Management trimmed its PepsiCo stake by 2.7% in the first quarter, selling 8,406 shares and leaving it with 308,084 shares valued at about $47.8 million.
• PepsiCo reported better-than-expected quarterly results, earning $1.61 per share on revenue of $19.44 billion, with revenue up 8.5% year over year.
• The company also announced a higher quarterly dividend of $1.48 per share, lifting the annualized payout to $5.92 and the yield to about 4.2%.

Sterling Capital Management LLC lessened its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.7% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 308,084 shares of the company's stock after selling 8,406 shares during the period. PepsiCo accounts for about 0.9% of Sterling Capital Management LLC's portfolio, making the stock its 25th biggest position. Sterling Capital Management LLC's holdings in PepsiCo were worth $47,842,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently modified their holdings of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo during the fourth quarter worth about $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo in the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new stake in shares of PepsiCo during the 4th quarter worth approximately $29,000. Vermillion Wealth Management Inc. boosted its position in shares of PepsiCo by 99.1% during the 1st quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock worth $34,000 after acquiring an additional 108 shares in the last quarter. Finally, Imprint Wealth LLC bought a new position in PepsiCo in the third quarter valued at approximately $31,000. Institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

Shares of PEP stock opened at $141.39 on Friday. The firm has a market capitalization of $193.25 billion, a price-to-earnings ratio of 22.20, a PEG ratio of 2.78 and a beta of 0.35. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The business's 50-day moving average price is $148.40 and its 200-day moving average price is $152.01. PepsiCo, Inc. has a 12 month low of $128.11 and a 12 month high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share (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 business had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. During the same quarter last year, the business earned $1.48 EPS. The firm's quarterly revenue was up 8.5% on a year-over-year basis. Equities research analysts forecast that PepsiCo, Inc. will post 8.62 EPS for the current year.

PepsiCo Increases Dividend

The business also recently disclosed 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. The ex-dividend date is Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo's dividend payout ratio (DPR) is currently 92.94%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on PEP shares. Sanford C. Bernstein assumed coverage on PepsiCo in a report on Thursday, June 11th. They issued a "market perform" rating and a $143.00 target price on the stock. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. JPMorgan Chase & Co. lifted their target price on PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a research report on Friday, April 17th. BNP Paribas Exane increased their target price on shares of PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a report on Friday, April 17th. Finally, Deutsche Bank Aktiengesellschaft decreased their price target on shares of PepsiCo from $173.00 to $168.00 and set a "buy" rating on the stock in a report on Thursday, June 18th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $166.85.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s brand and growth efforts are getting fresh visibility, including marketing around “modern soda,” dirty-soda products, and broader consumer engagement. These trends could support beverage demand and help the company defend share in a changing soft-drink market.
• Positive Sentiment: Analyst support remains constructive overall: Citigroup kept a Buy rating even after trimming its price target to $170, implying meaningful upside from current levels. That helps reassure investors that the stock still looks attractively valued despite recent weakness.
• Positive Sentiment: PepsiCo continues to stand out as a diversified dividend stock, with coverage highlighting its 54-year streak of dividend growth. For income-oriented investors, that long track record can provide support ahead of earnings. Article Title

PepsiCo 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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