PepsiCo, Inc. $PEP Stock: Focused Investors LLC Trims Holdings

Focused Investors LLC reduced its position in PepsiCo, Inc. (NASDAQ:PEP) by 15.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 817,950 shares of the company’s stock after selling 154,700 shares during the quarter. PepsiCo comprises about 4.3% of Focused Investors LLC’s portfolio, making the stock its 10th largest position. Focused Investors LLC’s holdings in PepsiCo were worth $103,651,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Torray Investment Partners LLC lifted its position in shares of PepsiCo by 11.6% during the 3rd quarter. Torray Investment Partners LLC now owns 163,262 shares of the company’s stock worth $20,689,000 after buying an additional 16,994 shares during the last quarter. Legacy Wealth Management LLC MS acquired a new stake in PepsiCo in the third quarter valued at about $275,000. Eads & Heald Wealth Management grew its position in PepsiCo by 2.1% in the third quarter. Eads & Heald Wealth Management now owns 14,451 shares of the company’s stock valued at $1,831,000 after acquiring an additional 295 shares during the last quarter. Gerber Kawasaki Wealth & Investment Management grew its position in PepsiCo by 30.5% in the third quarter. Gerber Kawasaki Wealth & Investment Management now owns 2,754 shares of the company’s stock valued at $349,000 after acquiring an additional 644 shares during the last quarter. Finally, GRIMES & Co WEALTH MANAGEMENT LLC raised its stake in PepsiCo by 11.8% during the third quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 83,533 shares of the company’s stock worth $10,585,000 after acquiring an additional 8,799 shares in the last quarter. Institutional investors own 73.07% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on PEP shares. Wells Fargo & Company dropped their target price on shares of PepsiCo from $140.00 to $135.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. Morgan Stanley set a $145.00 price target on shares of PepsiCo in a research note on Friday, October 9th. Jefferies Financial Group reaffirmed a “hold” rating on shares of PepsiCo in a report on Thursday, October 8th. Sanford C. Bernstein reiterated a “market perform” rating on shares of PepsiCo in a research report on Friday, October 9th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $165.00 price objective on shares of PepsiCo in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $143.28.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed and expanded its long-term beverage partnership with Taco Bell, retaining exclusive beverage rights and broadening distribution of products including Mountain Dew Baja Blast. Plans for new functional and energy drinks could create additional opportunities across the partnership. What Is PepsiCo (PEP) Gaining From Its Expanded Beverage Partnership?
• Positive Sentiment: PepsiCo ranked 10th on a hedge-fund-based list of undervalued dividend-growth stocks, with 68 tracked funds holding bullish positions. This supports the view that some investors see value and income potential, though it is not a near-term business catalyst. PepsiCo Remains a Popular Choice for Dividend Investors
• Neutral Sentiment: Coverage of PepsiCo’s functional-food strategy signals a focus on growth beyond traditional snacks and beverages, but the article information provided does not specify initiatives or expected financial impact. Inside PepsiCo’s functional food strategy
• Neutral Sentiment: Costco has brought back a rare PepsiCo seasonal soda that fans reportedly stockpile. The return may support interest in the product, but the article details provided do not indicate a material sales impact. Costco just brought back the rare PepsiCo seasonal soda fans stockpile for emergencies
• Negative Sentiment: A comparison article focuses on Coca-Cola’s stock having outpaced PepsiCo, highlighting relative performance weakness that could weigh on investor sentiment toward PEP. How Did Coca-Cola Stock Leave PepsiCo Behind?

PepsiCo Trading Down 2.2%

Shares of PEP stock opened at $137.27 on Wednesday. The firm has a market capitalization of $187.06 billion, a P/E ratio of 17.24, a P/E/G ratio of 4.19 and a beta of 0.31. PepsiCo, Inc. has a twelve month low of $123.47 and a twelve month high of $171.48. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. The stock’s fifty day simple moving average is $133.28 and its 200 day simple moving average is $145.82.

PepsiCo (NASDAQ:PEP) last issued its earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.05. The business had revenue of $25.27 billion during the quarter, compared to analysts’ expectations of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.29 EPS. As a group, sell-side analysts predict that PepsiCo, Inc. will post 8.39 EPS for the current fiscal year.

Insider Activity at PepsiCo

In other PepsiCo news, Director Robert Pohlad acquired 184,646 shares of the company’s stock in a transaction that occurred on Wednesday, October 14th. The stock was acquired at an average price of $128.28 per share, for a total transaction of $23,686,388.88. Following the acquisition, the director directly owned 433,009 shares in the company, valued at $55,546,394.52. This represents a 74.35% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Ramon Laguarta sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the sale, the chief executive officer directly owned 491,645 shares in the company, valued at $66,435,988.85. The trade was a 5.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.12% of the company’s stock.

PepsiCo Profile

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.