Jensen Investment Management Inc. Sells 11,726 Shares of PepsiCo, Inc. $PEP

Jensen Investment Management Inc. cut its stake in shares of PepsiCo, Inc. (NASDAQ:PEP) by 11.3% during the 3rd quarter, HoldingsChannel reports. The firm owned 92,436 shares of the company’s stock after selling 11,726 shares during the period. Jensen Investment Management Inc.’s holdings in PepsiCo were worth $12,982,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of PepsiCo during the second quarter worth $2,330,594,000. Laurel Wealth Advisors LLC grew its position in PepsiCo by 14,420.2% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 3,890,688 shares of the company’s stock worth $513,726,000 after acquiring an additional 3,863,893 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in PepsiCo by 9.7% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company’s stock worth $3,833,406,000 after purchasing an additional 2,556,163 shares in the last quarter. Franklin Resources Inc. boosted its stake in shares of PepsiCo by 19.5% during the second quarter. Franklin Resources Inc. now owns 15,577,073 shares of the company’s stock valued at $2,056,797,000 after purchasing an additional 2,541,455 shares in the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of PepsiCo by 112.6% during the second quarter. First Trust Advisors LP now owns 4,040,079 shares of the company’s stock worth $533,452,000 after purchasing an additional 2,139,847 shares during the last quarter. Institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Performance

Shares of PEP opened at $166.97 on Wednesday. PepsiCo, Inc. has a 52 week low of $127.60 and a 52 week high of $170.75. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.67 and a current ratio of 0.85. The stock has a 50 day moving average price of $148.36 and a two-hundred day moving average price of $146.63. The firm has a market capitalization of $228.19 billion, a P/E ratio of 27.83, a P/E/G ratio of 3.18 and a beta of 0.40.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.24 by $0.02. The business had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.PepsiCo’s revenue was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities analysts forecast that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo declared that its board has authorized a stock buyback program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be given a dividend of $1.4225 per share. The ex-dividend date of this dividend is Friday, March 6th. This represents a $5.69 annualized dividend and a dividend yield of 3.4%. PepsiCo’s dividend payout ratio (DPR) is currently 94.83%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on PEP. Loop Capital set a $164.00 price target on PepsiCo in a research note on Thursday, October 23rd. Evercore boosted their target price on PepsiCo from $152.00 to $165.00 in a research report on Wednesday, February 4th. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $156.00 price target on shares of PepsiCo in a research note on Wednesday, February 4th. Wells Fargo & Company boosted their price objective on PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a report on Wednesday, February 4th. Finally, Morgan Stanley upped their target price on PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Eight equities research 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 has a consensus rating of “Hold” and a consensus target price of $167.68.

PepsiCo Company 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.