UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC Trims Stake in PepsiCo, Inc. $PEP

Key Points

• UBS AM reduced its PepsiCo stake by 19.3% in the fourth quarter, selling 2.42 million shares and ending with about 10.13 million shares valued at roughly $1.45 billion.
• PepsiCo beat quarterly expectations, reporting $1.61 EPS on revenue of $19.44 billion, with sales up 8.5% year over year.
• The company raised its dividend to $1.48 per quarter, or $5.92 annualized, for a yield of about 4.1%, though analysts currently rate the stock a consensus “Hold.”

UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lowered its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 19.3% during the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 10,130,364 shares of the company's stock after selling 2,415,642 shares during the quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC owned approximately 0.74% of PepsiCo worth $1,453,910,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Swiss RE Ltd. purchased a new stake in PepsiCo in the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV purchased a new position in PepsiCo in the 4th quarter valued at about $29,000. Imprint Wealth LLC bought a new position in shares of PepsiCo during the third quarter worth about $31,000. Strategic Advocates LLC bought a new position in PepsiCo in the third quarter worth about $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of PepsiCo in the fourth quarter valued at approximately $33,000. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

Shares of PEP opened at $144.27 on Friday. The company has a market capitalization of $197.18 billion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 2.60 and a beta of 0.35. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company's fifty day moving average price is $151.11 and its 200 day moving average price is $152.37.

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

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be given a $1.48 dividend. The ex-dividend date is Friday, June 5th. This represents a $5.92 annualized dividend and a yield of 4.1%. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio (DPR) is 92.94%.

Wall Street Analysts Forecast Growth

PEP has been the subject of a number of research reports. BNP Paribas Exane raised 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. Argus upgraded shares of PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Barclays raised their target price on shares of PepsiCo from $154.00 to $158.00 and gave the stock an "equal weight" rating in a report on Monday, April 20th. Sanford C. Bernstein started coverage on shares of PepsiCo in a report on Thursday. They set a "market perform" rating and a $143.00 target price for the company. Finally, Rothschild & Co Redburn raised their price objective on shares of PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Eight research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $167.35.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo NASDAQ: PEP Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

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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