Yacktman Asset Management LP Has $291.15 Million Stock Holdings in PepsiCo, Inc. $PEP

Key Points

• Yacktman Asset Management trimmed its PepsiCo stake by 1.5% in the fourth quarter, but still held 2.03 million shares worth about $291.1 million. PepsiCo remained its 6th-largest holding and accounted for 4.1% of the portfolio.
• PepsiCo reported stronger-than-expected quarterly results, with EPS of $1.61 versus estimates of $1.55 and revenue of $19.44 billion versus expectations of $18.89 billion. Revenue rose 8.5% year over year.
• The company also boosted shareholder returns by increasing its quarterly dividend to $1.48 per share and authorizing a $10 billion share buyback. Analysts currently rate the stock a consensus Hold with an average price target of $170.26.

Yacktman Asset Management LP reduced its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 1.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,028,631 shares of the company's stock after selling 31,682 shares during the quarter. PepsiCo makes up 4.1% of Yacktman Asset Management LP's portfolio, making the stock its 6th largest holding. Yacktman Asset Management LP owned approximately 0.15% of PepsiCo worth $291,149,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. JCIC Asset Management Inc. bought a new position in shares of PepsiCo during the third quarter valued at $27,000. MH & Associates Securities Management Corp ADV bought a new position in shares of PepsiCo during the fourth quarter valued at $29,000. Imprint Wealth LLC bought a new position in shares of PepsiCo during the third quarter valued at $31,000. Strategic Advocates LLC bought a new position in shares of PepsiCo during the third quarter valued at $33,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new position in shares of PepsiCo during the fourth quarter valued at $33,000. 73.07% of the stock is owned by institutional investors.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced a new partnership in the UAE’s Future Industries Lab to support SMEs and young Emiratis, reinforcing its innovation and local investment strategy. MoIAT expands Future Industries Lab with new PepsiCo partnership supporting SMEs and young Emiratis
• Positive Sentiment: PepsiCo and TalusAg Renewables announced a low-carbon ammonia agreement, an ESG-oriented move that could improve supply-chain sustainability and appeal to investors focused on emissions reduction. PepsiCo and TalusAg Renewables announce low-carbon ammonia attribute agreement to help accelerate fertilizer decarbonization
• Positive Sentiment: Multiple articles highlighted PepsiCo’s continued investment in China and its focus on international growth, product innovation, and cost discipline, which supports the long-term bull case. PepsiCo to 'continue investing' in Chinese market

PepsiCo Stock Performance

PepsiCo stock opened at $154.62 on Friday. The stock has a 50-day simple moving average of $157.25 and a 200 day simple moving average of $152.50. 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, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The stock has a market capitalization of $211.33 billion, a price-to-earnings ratio of 24.27, a P/E/G ratio of 2.86 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. During the same period in the previous year, the business posted $1.48 earnings per share. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. On average, research analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be given a $1.48 dividend. The ex-dividend date is Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 3.8%. PepsiCo's dividend payout ratio is 89.32%.

PepsiCo announced that its Board of Directors has approved a share buyback program on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on PEP shares. Morgan Stanley lifted their price objective on PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a report on Wednesday, February 4th. Barclays lifted their price objective on PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a report on Monday, April 20th. Piper Sandler lifted their price objective on PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. HSBC lifted their price objective on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a report on Friday, April 17th. Finally, Evercore lifted their price target on PepsiCo from $165.00 to $170.00 in a report on Friday, April 17th. Eight research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, PepsiCo currently has an average rating of "Hold" and a consensus price target of $170.26.

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.

Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.