Sumitomo Mitsui Trust Group Inc. Sells 86,654 Shares of PepsiCo, Inc. $PEP

Key Points

• Sumitomo Mitsui Trust Group Inc. trimmed its PepsiCo stake by 2.4% in the first quarter, selling 86,654 shares. It still owned 3.54 million shares valued at about $550.3 million at quarter-end.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 versus the $1.55 consensus and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share from $1.42, equal to an annualized dividend of $5.92 and a yield of 4.2%. Analysts currently have an average rating of Hold on the stock, with an average price target of $164.40.

Sumitomo Mitsui Trust Group Inc. reduced its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,543,381 shares of the company's stock after selling 86,654 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.26% of PepsiCo worth $550,252,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of PEP. Brighton Jones LLC lifted its position in PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of PepsiCo in the first quarter valued at approximately $251,000. Sivia Capital Partners LLC increased its stake in shares of PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock worth $862,000 after purchasing an additional 3,790 shares during the period. Schnieders Capital Management LLC. increased its stake in shares of PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock worth $5,039,000 after purchasing an additional 3,502 shares during the period. Finally, Sei Investments Co. lifted its holdings in PepsiCo by 45.5% during the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company's stock worth $70,789,000 after purchasing an additional 167,707 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $142.51 on Thursday. The business has a fifty day moving average price of $146.14 and a two-hundred day moving average price of $151.63. The stock has a market capitalization of $194.78 billion, a PE ratio of 22.37, a P/E/G ratio of 2.92 and a beta of 0.36. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. PepsiCo, Inc. has a fifty-two week low of $132.96 and a fifty-two week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.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. PepsiCo's quarterly revenue was up 8.5% on a year-over-year basis. As a group, equities analysts predict that PepsiCo, Inc. will post 8.62 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a dividend of $1.48 per share. The ex-dividend date was 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 is currently 92.94%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. TD Cowen decreased their price objective on PepsiCo from $165.00 to $150.00 and set a "hold" rating on the stock in a report on Friday, June 12th. Wells Fargo & Company reduced their target price on shares of PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. The Goldman Sachs Group upped their price target on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Monday. Finally, Piper Sandler dropped their price objective on shares of PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo has an average rating of "Hold" and an average price target of $164.40.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investors are betting PepsiCo’s turnaround is holding, with recent commentary pointing to better North American snack demand and improving volume trends after price resets and product innovation. PepsiCo Rises Ahead of Q2 Results as Investors Bet Turnaround Gains Are Holding
• Positive Sentiment: Several market previews suggest PepsiCo could post higher second-quarter sales, which would support the idea that its restructuring and growth initiatives are beginning to work. PepsiCo Projected to Post Higher 2Q Sales Despite Rocky Turnaround -- Earnings Preview
• Positive Sentiment: Analysts and commentators continue to describe PEP as attractive ahead of earnings, with implied post-earnings volatility indicating traders expect a meaningful move if results surprise. PepsiCo Stock Could Swing 4.16% After Earnings on Thursday
• Positive Sentiment: BNP Paribas Exane still rates PepsiCo “outperform” even after trimming its price target to $183, implying upside from current levels. Benzinga report on BNP Paribas Exane target cut
• Neutral Sentiment: PepsiCo unveiled a whole grain oat-based shake and is trying again with Quaker drinks in the U.S., signaling ongoing product innovation but with unclear near-term financial impact. PepsiCo unveils whole grain oat-based shake
• Negative Sentiment: Some analysts have recently trimmed price targets, and PepsiCo remains under pressure to prove its turnaround can offset softer U.S. sales and broader consumer-staples caution. PepsiCo (PEP) Price Target Trimmed at JP Morgan. Here is Why

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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