In a significant move, 1248 Management LLC has drastically reduced its investment in PepsiCo, Inc. (NASDAQ: PEP) by 94.4% during the second quarter of 2023. According to its recent filing with the Securities & Exchange Commission, the institutional investor now holds just 259 shares of PepsiCo, following the sale of 4,339 shares. As of the latest report, the value of 1248 Management’s holdings in PepsiCo stands at approximately $34,000.
This divestment is part of a broader trend among institutional investors. Other firms have also adjusted their stakes in PepsiCo. For instance, Nova Wealth Management Inc. initiated a new investment in the company during the first quarter, valued at $25,000. Similarly, Legend Financial Advisors Inc. acquired a position worth about $29,000 in the second quarter, while Vermillion & White Wealth Management Group LLC increased its stake by 107.1%, now owning 234 shares valued at $31,000.
Furthermore, Frazier Financial Advisors LLC expanded its position by 85.3%, holding 265 shares worth $35,000. Binnacle Investments Inc. also raised its investment in PepsiCo by 33.2%, now owning 285 shares valued at $38,000. Overall, institutional investors control approximately 73.07% of PepsiCo’s stock.
Analysts Upgrade PepsiCo’s Stock Ratings
Recent evaluations from stock analysts indicate a positive outlook for PepsiCo. On October 10, 2023, Wall Street Zen upgraded PepsiCo shares from a “hold” to a “buy” rating. Wells Fargo & Company raised its price target for PepsiCo from $150.00 to $154.00, endorsing a “positive” rating. In a separate report, Loop Capital set a price objective of $164.00, while Evercore ISI increased its target from $150.00 to $152.00. Piper Sandler further elevated its price target from $161.00 to $172.00, designating the stock as “overweight.”
Currently, eight research analysts have given PepsiCo stock a “buy” rating, while thirteen analysts recommend holding, and one has issued a sell rating. According to data from MarketBeat.com, PepsiCo maintains a consensus rating of “hold” with a price target averaging $158.35.
PepsiCo’s Financial Performance and Dividend Update
PepsiCo shares opened at $150.65 on Friday, reflecting a market capitalization of approximately $205.99 billion. The stock exhibits a price-to-earnings ratio of 28.64 and a price-to-earnings-growth ratio of 5.20. Over the past twelve months, the stock has fluctuated between a low of $127.60 and a high of $160.15.
The company recently reported its earnings for the third quarter on October 8, revealing earnings per share of $2.29, surpassing the consensus estimate of $2.26. PepsiCo generated revenue of $23.94 billion in the quarter, slightly exceeding expectations. Comparatively, the company posted earnings of $2.31 per share during the same period last year, marking a year-over-year revenue increase of 2.7%.
In addition to its earnings announcement, PepsiCo declared a quarterly dividend of $1.4225 per share, scheduled for payment on January 6, 2024. Shareholders of record on December 5, 2023, will receive this dividend, which represents an annualized dividend of $5.69 and a yield of 3.8%. PepsiCo’s payout ratio currently stands at 108.17%.
PepsiCo, Inc. operates globally, focusing on the manufacture, marketing, distribution, and sale of various beverages and convenient foods. The company is structured into seven segments, including Frito-Lay North America and PepsiCo Beverages North America, among others. With a robust portfolio and a diverse market presence, PepsiCo continues to be a significant player in the global food and beverage industry.
