VELA Investment Management LLC Trims Stake in PepsiCo, Inc. $PEP

Key Points

• VELA Investment Management LLC reduced its stake in PepsiCo by 10.7% during the second quarter, selling 3,215 shares and bringing their holdings to 26,765 shares valued at approximately $3.5 million.
• PepsiCo reported earnings of $2.29 per share for the quarter, exceeding expectations, with revenues of $23.94 billion, reflecting a 2.7% increase from the previous year.
• PepsiCo’s quarterly dividend was recently paid at $1.4225 per share, translating to an annualized dividend of $5.69 and a dividend yield of 3.7%.

VELA Investment Management LLC reduced its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 10.7% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 26,765 shares of the company's stock after selling 3,215 shares during the quarter. VELA Investment Management LLC's holdings in PepsiCo were worth $3,534,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Nova Wealth Management Inc. purchased a new position in shares of PepsiCo during the first quarter worth approximately $25,000. Elite Financial Inc. purchased a new position in shares of PepsiCo during the first quarter worth approximately $28,000. Legend Financial Advisors Inc. purchased a new position in shares of PepsiCo during the second quarter worth approximately $29,000. Frazier Financial Advisors LLC increased its position in shares of PepsiCo by 85.3% during the second quarter. Frazier Financial Advisors LLC now owns 265 shares of the company's stock worth $35,000 after acquiring an additional 122 shares during the period. Finally, Investment Research & Advisory Group Inc. increased its position in shares of PepsiCo by 263.6% during the second quarter. Investment Research & Advisory Group Inc. now owns 320 shares of the company's stock worth $42,000 after acquiring an additional 232 shares during the period. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Price Performance

Shares of PEP opened at $152.67 on Friday. The company has a market cap of $208.75 billion, a price-to-earnings ratio of 29.02, a price-to-earnings-growth ratio of 3.68 and a beta of 0.46. PepsiCo, Inc. has a twelve month low of $127.60 and a twelve month high of $177.50. The company has a quick ratio of 0.72, a current ratio of 0.91 and a debt-to-equity ratio of 2.26. The company has a 50 day moving average of $145.34 and a two-hundred day moving average of $139.37.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, October 9th. The company reported $2.29 earnings per share for the quarter, beating the consensus estimate of $2.26 by $0.03. The company had revenue of $23.94 billion during the quarter, compared to the consensus estimate of $23.91 billion. PepsiCo had a net margin of 7.82% and a return on equity of 57.58%. PepsiCo's revenue was up 2.7% compared to the same quarter last year. During the same period last year, the firm earned $2.31 earnings per share. PepsiCo has set its FY 2025 guidance at 8.120-8.120 EPS. As a group, analysts predict that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Friday, September 5th were paid a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Friday, September 5th. PepsiCo's payout ratio is presently 108.17%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on PEP shares. JPMorgan Chase & Co. reduced their target price on shares of PepsiCo from $157.00 to $151.00 and set a "neutral" rating on the stock in a research report on Monday, October 6th. Rothschild & Co Redburn lifted their price objective on shares of PepsiCo from $115.00 to $117.00 and gave the company a "sell" rating in a report on Monday. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a report on Tuesday. Barclays lifted their price objective on shares of PepsiCo from $140.00 to $142.00 and gave the company an "equal weight" rating in a report on Friday, October 10th. Finally, Cowen reissued a "hold" rating on shares of PepsiCo in a report on Thursday, July 17th. Six investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, PepsiCo currently has an average rating of "Hold" and an average target price of $156.00.

PepsiCo Company Profile

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.

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