Ascent Group LLC has significantly increased its holdings in PepsiCo, Inc. (NASDAQ: PEP) by 36.7% during the third quarter of 2023, as reported in the company’s recent filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 42,508 shares of PepsiCo after acquiring an additional 11,420 shares during this period. The value of Ascent Group’s stake stands at approximately $5.97 million.
Several other hedge funds have also adjusted their positions in PepsiCo. For instance, JSF Financial LLC increased its holdings by 3.8% in the second quarter, now owning 1,897 shares valued at $250,000. Similarly, Binnacle Investments Inc. raised its stake by 33.2%, bringing its total to 285 shares worth $38,000. Other notable changes include Dogwood Wealth Management LLC, which lifted its position by 15.4%, and Weaver Consulting Group, which increased its stake by 2.9%.
Overall, hedge funds and institutional investors own approximately 73.07% of PepsiCo’s stock, indicating strong institutional confidence in the company.
Analysts Update Price Targets
Recent reports from analysts have revealed a range of updated price targets for PepsiCo. Notably, Wells Fargo & Company raised its target from $150.00 to $154.00, maintaining a “positive” rating. HSBC adjusted its target from $145.00 to $152.00 while giving the stock a “hold” rating. Loop Capital set a price objective of $164.00, and Citigroup increased its target from $165.00 to $170.00, designating it a “buy.”
Of the 22 equities research analysts covering PepsiCo, eight have issued a “buy” rating, thirteen a “hold” rating, and one has rated it a “sell.” The consensus rating for the stock is currently “hold,” with a target price of $158.75.
PepsiCo’s stock opened at $144.16 on the Nasdaq exchange on October 8, 2023. Over the past year, it has seen a low of $127.60 and a high of $160.15. The company boasts a market capitalization of $197.12 billion, a price-to-earnings ratio of 27.41, and a PEG ratio of 4.98.
Recent Earnings and Dividend Announcement
PepsiCo recently reported earnings that exceeded analysts’ expectations. For the third quarter ending October 8, 2023, the company announced earnings per share of $2.29, surpassing the consensus estimate of $2.26. The firm generated revenue of $23.94 billion, slightly above the anticipated $23.91 billion. This reflects a 2.7% increase in revenue compared to the same quarter last year.
In addition to its earnings report, PepsiCo declared a quarterly dividend of $1.4225 per share, set to be paid on January 6, 2024, to shareholders of record as of December 5, 2023. This dividend represents an annualized yield of 3.9%, although the payout ratio is notably high at 108.17%.
PepsiCo, headquartered in Purchase, New York, is a leading multinational food and beverage company. The firm develops, manufactures, and markets a diverse range of products, including soft drinks, snacks, and ready-to-drink beverages. With a history dating back to its merger in 1965, PepsiCo continues to be a key player in the global food and beverage industry.
