American International Group Inc. Cuts Stock Position in PepsiCo, Inc. (NASDAQ:PEP)

American International Group Inc. trimmed its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP – Get Rating) by 11.4% during the 4th quarter, HoldingsChannel.com reports. The firm owned 497,499 shares of the company’s stock after selling 64,047 shares during the quarter. PepsiCo accounts for approximately 0.6% of American International Group Inc.’s investment portfolio, making the stock its 17th biggest position. American International Group Inc.’s holdings in PepsiCo were worth $89,878,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in shares of PepsiCo by 1.3% during the 3rd quarter. Vanguard Group Inc. now owns 128,842,451 shares of the company’s stock valued at $21,034,819,000 after buying an additional 1,611,639 shares during the period. State Street Corp lifted its holdings in shares of PepsiCo by 0.7% during the 3rd quarter. State Street Corp now owns 59,634,823 shares of the company’s stock valued at $9,735,981,000 after buying an additional 423,426 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of PepsiCo by 10.3% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 15,264,902 shares of the company’s stock valued at $2,555,040,000 after buying an additional 1,427,405 shares during the period. Nuveen Asset Management LLC lifted its holdings in shares of PepsiCo by 8.1% during the 3rd quarter. Nuveen Asset Management LLC now owns 10,848,950 shares of the company’s stock valued at $1,771,200,000 after buying an additional 816,417 shares during the period. Finally, California Public Employees Retirement System lifted its holdings in shares of PepsiCo by 1.2% during the 4th quarter. California Public Employees Retirement System now owns 9,061,606 shares of the company’s stock valued at $1,637,070,000 after buying an additional 104,039 shares during the period. 70.76% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Price Performance

Shares of PepsiCo stock traded down $0.18 during trading on Friday, reaching $183.62. 1,241,146 shares of the stock traded hands, compared to its average volume of 4,392,533. The company has a market capitalization of $252.97 billion, a price-to-earnings ratio of 38.71, a P/E/G ratio of 3.23 and a beta of 0.53. The business has a fifty day simple moving average of $187.60 and a two-hundred day simple moving average of $179.52. The company has a debt-to-equity ratio of 2.18, a current ratio of 0.87 and a quick ratio of 0.65. PepsiCo, Inc. has a 52-week low of $154.86 and a 52-week high of $196.88.

PepsiCo (NASDAQ:PEP – Get Rating) last issued its quarterly earnings data on Tuesday, April 25th. The company reported $1.50 earnings per share for the quarter, beating analysts’ consensus estimates of $1.37 by $0.13. The firm had revenue of $17.85 billion during the quarter, compared to analyst estimates of $17.27 billion. PepsiCo had a return on equity of 53.68% and a net margin of 7.48%. The business’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.29 earnings per share. Sell-side analysts expect that PepsiCo, Inc. will post 7.3 EPS for the current year.

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 30th. Investors of record on Friday, June 2nd will be given a $1.265 dividend. The ex-dividend date is Thursday, June 1st. This represents a $5.06 annualized dividend and a yield of 2.76%. This is a positive change from PepsiCo’s previous quarterly dividend of $1.15. PepsiCo’s dividend payout ratio (DPR) is currently 96.84%.

Insider Buying and Selling

In related news, Director Robert C. Pohlad sold 75,000 shares of PepsiCo stock in a transaction dated Thursday, March 9th. The stock was sold at an average price of $172.47, for a total value of $12,935,250.00. Following the completion of the transaction, the director now owns 183,929 shares in the company, valued at $31,722,234.63. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other PepsiCo news, CEO Ramkumar Krishnan sold 16,827 shares of the firm’s stock in a transaction dated Tuesday, March 7th. The shares were sold at an average price of $172.70, for a total value of $2,906,022.90. Following the completion of the sale, the chief executive officer now owns 49,000 shares of the company’s stock, valued at $8,462,300. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Robert C. Pohlad sold 75,000 shares of the firm’s stock in a transaction dated Thursday, March 9th. The stock was sold at an average price of $172.47, for a total transaction of $12,935,250.00. Following the completion of the sale, the director now directly owns 183,929 shares of the company’s stock, valued at approximately $31,722,234.63. The disclosure for this sale can be found here. 0.15% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Barclays raised their target price on PepsiCo from $201.00 to $206.00 in a report on Thursday, April 27th. Credit Suisse Group raised their target price on PepsiCo from $175.00 to $182.00 and gave the stock a “neutral” rating in a report on Friday, February 10th. Morgan Stanley raised their target price on PepsiCo from $200.00 to $210.00 in a report on Tuesday, April 25th. Royal Bank of Canada raised their target price on PepsiCo from $175.00 to $178.00 in a report on Wednesday, April 26th. Finally, JPMorgan Chase & Co. raised their target price on PepsiCo from $190.00 to $196.00 and gave the stock an “overweight” rating in a report on Monday, April 17th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $190.25.

About PepsiCo

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PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of beverages, food, and snacks. It operates through the following business segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), PepsiCo Beverages North America (PBNA), Latin America (LatAm), Europe, Africa, Middle East, and South Asia (AMESA), and Asia Pacific, Australia and New Zealand, and China Region (APAC).