Van Lanschot Kempen Investment Management N.V. Boosts Stake in PepsiCo, Inc. $PEP

Key Points

• Van Lanschot Kempen Investment Management N.V. increased its PepsiCo stake by 19.7% in the fourth quarter, buying 52,475 additional shares and bringing its total position to 318,864 shares worth about $45.8 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion expected. Revenue rose 8.5% year over year, and the company is projected to earn $8.63 per share for the full fiscal year.
• The company raised its quarterly dividend to $1.48 per share from $1.42, lifting the annualized payout to $5.92 and the yield to about 4.1%. However, analyst sentiment remains cautious overall, with a consensus rating of Hold and several firms trimming price targets.

Van Lanschot Kempen Investment Management N.V. raised its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 19.7% in the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 318,864 shares of the company's stock after acquiring an additional 52,475 shares during the period. Van Lanschot Kempen Investment Management N.V.'s holdings in PepsiCo were worth $45,763,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Swiss RE Ltd. acquired a new position in PepsiCo in the 4th quarter valued at $28,000. MH & Associates Securities Management Corp ADV acquired a new position in PepsiCo in the 4th quarter valued at $29,000. Imprint Wealth LLC acquired a new position in PepsiCo in the 3rd quarter valued at $31,000. Strategic Advocates LLC acquired a new position in PepsiCo in the 3rd quarter valued at $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new position in PepsiCo in the 4th quarter valued at $33,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Stock Performance

Shares of PEP stock opened at $144.27 on Friday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The company's 50-day simple moving average is $151.11 and its 200-day simple moving average is $152.37. The stock has a market capitalization of $197.18 billion, a price-to-earnings ratio of 22.65, a PEG ratio of 2.60 and a beta of 0.35.

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 the consensus estimate of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same quarter last year, the company posted $1.48 earnings per share. The company's quarterly revenue was up 8.5% compared to the same quarter last year. Equities analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

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

Wall Street Analyst Weigh In

Several research analysts have weighed in on PEP shares. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. Wells Fargo & Company dropped their price objective on PepsiCo from $160.00 to $150.00 and set an "equal weight" rating for the company in a report on Friday, June 5th. Royal Bank Of Canada dropped their price objective on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a report on Thursday, April 9th. Argus upgraded PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Finally, Sanford C. Bernstein initiated coverage on PepsiCo in a report on Thursday. They set a "market perform" rating and a $143.00 price objective for the company. Eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target 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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