Temasek Holdings Private Ltd Increases Position in PepsiCo, Inc. $PEP

Key Points

• Temasek more than doubled its stake in PepsiCo in Q3, increasing holdings by 107.1% to 557,426 shares (an additional 288,245 shares) valued at about $78.3 million.
• Board approved a $10 billion buyback (up to ~4.7% of shares) and declared a quarterly dividend of $1.4225 ($5.69 annualized), reflecting a ~3.6% yield.
• Recent quarter beat expectations modestly — EPS $2.26 vs. $2.24 estimate and revenue $29.34B (up 5.6% YoY); analysts hold a consensus "Hold" rating with an average price target of $169.

Temasek Holdings Private Ltd lifted its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 107.1% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 557,426 shares of the company's stock after acquiring an additional 288,245 shares during the quarter. Temasek Holdings Private Ltd's holdings in PepsiCo were worth $78,285,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of the business. Brighton Jones LLC raised its stake in shares of PepsiCo by 12.4% during the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after purchasing an additional 6,574 shares during the period. Caxton Associates LLP bought a new position in PepsiCo during the first quarter valued at about $251,000. Sivia Capital Partners LLC increased its holdings in 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 buying an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in 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 buying an additional 3,502 shares during the last quarter. Finally, Good Life Advisors LLC raised its position in PepsiCo by 29.5% in the second quarter. Good Life Advisors LLC now owns 6,627 shares of the company's stock worth $875,000 after acquiring an additional 1,510 shares during the period. Hedge funds and other institutional investors own 73.07% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on PEP shares. Argus raised shares of PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Piper Sandler lifted their price target on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a report on Thursday. Royal Bank Of Canada increased their price objective on PepsiCo from $156.00 to $165.00 and gave the company a "sector perform" rating in a report on Monday, March 2nd. Wells Fargo & Company raised their target price on PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. Finally, JPMorgan Chase & Co. boosted their target price on PepsiCo from $164.00 to $176.00 and gave the company an "overweight" rating in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, PepsiCo currently has a consensus rating of "Hold" and an average price target of $169.00.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $159.88 on Friday. The company has a 50 day moving average of $156.71 and a 200 day moving average of $149.68. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06. The stock has a market cap of $218.50 billion, a P/E ratio of 26.65, a P/E/G ratio of 3.05 and a beta of 0.39. PepsiCo, Inc. has a 12 month low of $127.60 and a 12 month high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Monday, February 2nd. The company reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The business had revenue of $29.34 billion for the quarter, compared to analysts' expectations of $28.96 billion. During the same period in the prior year, the company posted $1.96 EPS. The business's revenue for the quarter was up 5.6% compared to the same quarter last year. As a group, sell-side analysts forecast that PepsiCo, Inc. will post 8.3 EPS for the current fiscal year.

PepsiCo declared that its Board of Directors has authorized a share repurchase program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows 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 leadership believes its shares are undervalued.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be given a $1.4225 dividend. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is 94.83%.

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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