Van ECK Associates Corp Buys 1,066,414 Shares of PepsiCo, Inc. $PEP

Key Points

• Van ECK Associates Corp boosted its PepsiCo stake by 36.2% in the fourth quarter, adding 1,066,414 shares and bringing its total holdings to 4,014,954 shares worth about $576.2 million.
• 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, while revenue rose 8.5% year over year.
• The company also raised its quarterly dividend to $1.48 per share from $1.42, though analyst sentiment remains mixed with an average rating of Hold and several recent price-target cuts.

Van ECK Associates Corp increased its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 36.2% in the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 4,014,954 shares of the company's stock after acquiring an additional 1,066,414 shares during the quarter. Van ECK Associates Corp owned about 0.29% of PepsiCo worth $576,226,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after acquiring an additional 1,612,652 shares during the last quarter. State Street Corp increased its holdings in PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares during the last quarter. Geode Capital Management LLC increased its holdings in PepsiCo by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares during the last quarter. Norges Bank purchased a new position in PepsiCo during the 4th quarter valued at about $3,018,813,000. Finally, Invesco Ltd. grew its holdings in PepsiCo by 7.6% during the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock valued at $1,912,476,000 after buying an additional 958,701 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Price Performance

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

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share 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 analysts' expectations of $18.89 billion. During the same period in the prior year, the firm earned $1.48 earnings per share. The firm's revenue for the quarter was up 8.5% on a year-over-year basis. Research analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo Increases Dividend

The business also recently announced 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. This is an increase from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date of this dividend is Friday, June 5th. PepsiCo's payout ratio is currently 92.94%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on PEP shares. Wall Street Zen lowered PepsiCo from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Rothschild & Co Redburn lifted their target price on PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Royal Bank Of Canada reduced their target price on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a report on Thursday, April 9th. The Goldman Sachs Group lifted their price target on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Finally, Barclays boosted their price objective on PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research report on Monday, April 20th. 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 stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $167.35.

Key Stories Impacting PepsiCo

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 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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