Callahan Advisors LLC Has $18.70 Million Stake in PepsiCo, Inc. $PEP

Callahan Advisors LLC decreased its holdings in PepsiCo, Inc. (NASDAQ:PEP) by 5.5% in the 4th quarter, Holdings Channel.com reports. The firm owned 130,291 shares of the company’s stock after selling 7,622 shares during the period. PepsiCo comprises 1.5% of Callahan Advisors LLC’s holdings, making the stock its 21st biggest position. Callahan Advisors LLC’s holdings in PepsiCo were worth $18,699,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also bought and sold shares of the business. Vanguard Group Inc. raised its stake in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock worth $19,875,205,000 after purchasing an additional 1,612,652 shares in the last quarter. State Street Corp raised its position in shares of PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company’s stock valued at $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Invesco Ltd. raised its position in shares of PepsiCo by 7.6% in the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company’s stock valued at $1,912,476,000 after buying an additional 958,701 shares in the last quarter. Legal & General Group Plc raised its position in shares of PepsiCo by 1.3% in the 3rd quarter. Legal & General Group Plc now owns 8,902,664 shares of the company’s stock valued at $1,250,290,000 after buying an additional 118,286 shares in the last quarter. Finally, Amundi raised its position in shares of PepsiCo by 30.0% in the 3rd quarter. Amundi now owns 8,641,588 shares of the company’s stock valued at $1,207,230,000 after buying an additional 1,995,362 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Trading Down 0.7%

Shares of PepsiCo stock opened at $149.29 on Thursday. The firm has a market capitalization of $204.05 billion, a PE ratio of 23.44, a price-to-earnings-growth ratio of 2.73 and a beta of 0.38. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The firm’s 50 day moving average is $154.60 and its 200 day moving average is $152.45. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.55 by $0.06. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same period in the previous year, the firm posted $1.48 EPS. The company’s revenue for the quarter was up 8.5% compared to the same quarter last year. Equities research analysts forecast that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo announced that its board has authorized a share buyback program 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 shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders 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%. 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. PepsiCo’s payout ratio is presently 89.32%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on PEP shares. Piper Sandler boosted their target price on shares of PepsiCo from $172.00 to $181.00 and gave the company an “overweight” rating in a research report on Thursday, March 12th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of PepsiCo from $169.00 to $173.00 and gave the company a “buy” rating in a research report on Friday, April 17th. UBS Group dropped their target price on shares of PepsiCo from $190.00 to $186.00 and set a “buy” rating for the company in a research report on Tuesday, April 7th. Royal Bank Of Canada dropped their target price on shares of PepsiCo from $165.00 to $163.00 and set a “sector perform” rating for the company in a research report on Thursday, April 9th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Wednesday, April 8th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, PepsiCo currently has an average rating of “Hold” and an average price target of $170.11.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Analysts and market commentary continue to highlight PepsiCo’s portfolio reset, pricing power, and innovation in zero-sugar, functional, and “better-for-you” snacks and drinks as potential growth drivers. Article Title
• Positive Sentiment: PepsiCo India plans to invest Rs 5,700 crore through 2030 to expand capacity, which could support long-term growth in an important international market. Article Title
• Neutral Sentiment: At the annual meeting, shareholders elected David W. Gibbs to the board and rejected proposals for an independent board chair and additional human-rights and animal-welfare reporting, suggesting governance issues remain in focus but are not a major near-term catalyst. Article Title
• Neutral Sentiment: Commentary comparing PepsiCo with Coca-Cola underscores that PEP is working to balance pricing power and distribution scale against margin pressure from higher input and operating costs. Article Title
• Negative Sentiment: Multiple reports say PepsiCo plans to raise prices on some smaller chip bags because of higher production, distribution, and retail expenses in the U.S., which may raise concerns about volume softness if consumers push back. Article Title
• Negative Sentiment: Wells Fargo reportedly cut its price target on PepsiCo to $160, adding to the cautious tone around near-term margins and execution. Article Title

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.