Mondrian Investment Partners LTD Decreases Stake in PepsiCo, Inc. $PEP

Mondrian Investment Partners LTD reduced its stake in PepsiCo, Inc. (NASDAQ:PEP) by 3.7% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 634,712 shares of the company’s stock after selling 24,489 shares during the quarter. Mondrian Investment Partners LTD’s holdings in PepsiCo were worth $91,094,000 as of its most recent SEC filing.

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

PepsiCo News Summary

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

Analyst Upgrades and Downgrades

A number of research firms have issued reports on PEP. Barclays raised their price target on shares of PepsiCo from $154.00 to $158.00 and gave the stock an “equal weight” rating in a research report on Monday, April 20th. Evercore raised their price target on shares of PepsiCo from $165.00 to $170.00 in a research report on Friday, April 17th. Argus raised shares of PepsiCo to a “hold” rating in a research report on Tuesday, February 17th. HSBC raised their price target on shares of PepsiCo from $175.00 to $176.00 and gave the stock a “hold” rating in a research report on Friday, April 17th. Finally, TD Cowen lifted their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a “hold” rating in a report on Friday, February 20th. Eight investment 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’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $170.11.

PepsiCo Price Performance

NASDAQ:PEP opened at $150.57 on Friday. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The firm has a market cap of $205.79 billion, a price-to-earnings ratio of 23.64, a price-to-earnings-growth ratio of 2.73 and a beta of 0.38. The company has a 50 day moving average price of $154.17 and a 200-day moving average price of $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, beating the consensus estimate of $1.55 by $0.06. The firm had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business’s quarterly revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.48 EPS. Equities research analysts forecast that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo announced that its board has initiated a share repurchase plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be issued a dividend of $1.48 per share. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 annualized dividend and a dividend yield of 3.9%. PepsiCo’s payout ratio is presently 89.32%.

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.