HS Management Partners LLC Decreases Position in PepsiCo, Inc. $PEP

HS Management Partners LLC trimmed its position in PepsiCo, Inc. (NASDAQ:PEP) by 69.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 56,473 shares of the company’s stock after selling 129,728 shares during the period. PepsiCo accounts for approximately 1.7% of HS Management Partners LLC’s investment portfolio, making the stock its 24th biggest holding. HS Management Partners LLC’s holdings in PepsiCo were worth $8,105,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in PEP. Brighton Jones LLC raised its stake in PepsiCo by 12.4% in the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock worth $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP purchased a new position in PepsiCo in the 1st quarter worth $251,000. Sivia Capital Partners LLC raised its stake in PepsiCo by 138.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock worth $862,000 after acquiring an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. raised its stake in PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock worth $5,039,000 after acquiring an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. raised its stake in PepsiCo by 45.5% in the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company’s stock worth $70,789,000 after acquiring an additional 167,707 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Price Performance

NASDAQ:PEP opened at $150.57 on Friday. PepsiCo, Inc. has a 52 week low of $127.60 and a 52 week 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. The stock has a market capitalization of $205.79 billion, a PE ratio of 23.64, a price-to-earnings-growth ratio of 2.73 and a beta of 0.38. The stock’s 50-day moving average price is $154.17 and its 200-day moving average price is $152.45.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Wednesday, April 15th. The company reported $1.61 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 firm had revenue of $19.44 billion for the quarter, compared to analysts’ expectations of $18.89 billion. During the same period last year, the firm earned $1.48 EPS. The company’s quarterly revenue was up 8.5% on a year-over-year basis. As a group, equities analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo announced that its board has approved a share buyback plan on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 4.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

PepsiCo Increases Dividend

The firm also recently announced 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. This is a boost from PepsiCo’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 3.9%. PepsiCo’s payout ratio is 89.32%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on PEP shares. UBS Group cut their price target on PepsiCo from $190.00 to $186.00 and set a “buy” rating on the stock in a research report on Tuesday, April 7th. Barclays increased their price target on PepsiCo from $154.00 to $158.00 and gave the stock an “equal weight” rating in a research report on Monday, April 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of PepsiCo in a research report on Wednesday, April 8th. Citigroup increased their price target on PepsiCo from $170.00 to $182.00 and gave the stock a “buy” rating in a research report on Wednesday, February 4th. Finally, Wells Fargo & Company cut their price target on PepsiCo from $165.00 to $160.00 and set an “equal weight” rating on the stock in a research report on Monday, May 18th. Eight equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $170.11.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo extended and revised its licensing and bottling arrangements with Varun Beverages in India through 2049, while also giving the partner more freedom to pursue non-PepsiCo ventures. The longer-term deal should help protect distribution in a key growth market and reduce partnership uncertainty. Varun Beverages, PepsiCo revise licencing deal
• Positive Sentiment: PepsiCo is also being highlighted by market commentary as a strong growth stock and a defensive blue-chip income name, reinforcing investor interest in the company’s earnings stability and dividend profile. Here’s Why PepsiCo (PEP) is a Strong Growth Stock
• Neutral Sentiment: PepsiCo launched new products and initiatives, including a functional ready-to-drink tea and a greenhouse program in Asia-Pacific, which support its innovation story but are unlikely to move the stock on their own. PepsiCo adds functional RTD tea
• Neutral Sentiment: The company is also moving ahead with sustainability and regenerative agriculture efforts, which may help long-term brand positioning but are not immediate earnings catalysts. PepsiCo enters regen ag pact with LDC
• Negative Sentiment: Industry coverage continues to flag margin pressure from higher sugar, packaging and freight costs, along with tariff uncertainty. That backdrop could weigh on profitability for PepsiCo and other soft drink makers if costs stay elevated. 5 Soft Drinks Stocks to Track Amid Margin & Tariff Pressures
• Negative Sentiment: PepsiCo said it will raise prices on some smaller chip bags to offset increased costs. While this may help margins, it can also pressure volume and suggests inflation remains a headwind. Lay’s and Doritos maker to raise prices on small bags of chips

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.