Van Hulzen Asset Management LLC Has $16.88 Million Holdings in PepsiCo, Inc. $PEP

Key Points

• Van Hulzen Asset Management significantly increased its PepsiCo stake by 365.2% in the fourth quarter, ending with 117,612 shares worth about $16.88 million.
• PepsiCo reported strong quarterly results, posting EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion estimated, with revenue up 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share and maintains a 4.0% yield, while also authorizing a $10 billion share buyback plan.

Van Hulzen Asset Management LLC raised its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 365.2% in the fourth quarter, according to its most recent disclosure with the SEC. The firm owned 117,612 shares of the company's stock after acquiring an additional 92,329 shares during the period. PepsiCo makes up about 1.2% of Van Hulzen Asset Management LLC's holdings, making the stock its 25th largest position. Van Hulzen Asset Management LLC's holdings in PepsiCo were worth $16,880,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo in the fourth quarter valued at approximately $29,000. Imprint Wealth LLC acquired a new stake in PepsiCo in the third quarter valued at approximately $31,000. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in PepsiCo in the fourth quarter valued at approximately $33,000. Strategic Advocates LLC acquired a new stake in PepsiCo in the third quarter valued at approximately $33,000. Finally, Highline Wealth Partners LLC grew its stake in PepsiCo by 56.3% in the fourth quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock valued at $36,000 after acquiring an additional 90 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Analyst Upgrades and Downgrades

PEP has been the subject of a number of research reports. BNP Paribas Exane raised their price objective on PepsiCo from $191.00 to $195.00 and gave the company an "outperform" rating in a research note on Friday, April 17th. Morgan Stanley lifted their target price on PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research report on Wednesday, February 4th. Wells Fargo & Company cut their target price on PepsiCo from $165.00 to $160.00 and set an "equal weight" rating on the stock in a research report on Monday. Deutsche Bank Aktiengesellschaft lifted their target price on PepsiCo from $169.00 to $173.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Finally, 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. Eight investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $170.11.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo and Varun Beverages extended their exclusive bottling agreement in India through 2049, giving PepsiCo greater distribution stability and more flexibility to grow in a key international market.
• Positive Sentiment: PepsiCo announced new growth initiatives in Asia-Pacific and a regenerated agriculture partnership with LDC, both of which support the company’s sustainability efforts and supply-chain resilience.
• Positive Sentiment: PepsiCo continues to push product innovation, including a new functional ready-to-drink tea, which may help offset slowing demand in some core snack categories.
• Neutral Sentiment: PepsiCo India plans to invest about Rs 5,700 crore by 2030 to expand capacity, a sign of confidence in demand but also a longer-term capital commitment.
• Neutral Sentiment: Analyst commentary and recent features suggest PepsiCo still has a credible growth story thanks to pricing power, distribution scale, and expansion into better-for-you products, but these articles do not point to a near-term earnings surprise.
• Negative Sentiment: Reports that PepsiCo is raising prices on smaller chip bags highlight rising costs in the business and could increase consumer pushback, potentially pressuring volume growth.
• Negative Sentiment: Cost inflation remains a concern, and the need for selective price increases suggests PepsiCo is still facing margin pressure in its U.S. snack business.

PepsiCo Stock Performance

Shares of PepsiCo stock opened at $148.85 on Friday. The business's fifty day simple moving average is $154.36 and its 200 day simple moving average is $152.47. The firm has a market capitalization of $203.44 billion, a P/E ratio of 23.37, a price-to-earnings-growth ratio of 2.71 and a beta of 0.38. PepsiCo, Inc. has a 12 month low of $127.60 and a 12 month high of $171.48. The company has a current ratio of 0.90, a quick ratio of 0.72 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 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.PepsiCo's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period last year, the company posted $1.48 earnings per share. As a group, analysts anticipate that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a yield of 4.0%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio is 89.32%.

PepsiCo announced that its Board of Directors has initiated a stock buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

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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