Leavell Investment Management Reduces Stake in PepsiCo by 10.2%

Leavell Investment Management Inc. has reduced its stake in PepsiCo, Inc. (NASDAQ: PEP) by 10.2% during the second quarter of 2023, according to a report by Holdings Channel. Following this adjustment, the firm now holds 24,057 shares of PepsiCo, valued at approximately $3,176,000. This reduction involved the sale of 2,728 shares during the period.

Several other institutional investors have also made changes to their holdings in PepsiCo recently. For instance, Nova Wealth Management Inc. entered a new position in the first quarter, valued at about $25,000. Similarly, Elite Financial Inc. purchased shares worth approximately $28,000, and Legend Financial Advisors Inc. acquired a new stake in PepsiCo valued at around $29,000. Notably, Frazier Financial Advisors LLC increased its investment by 85.3%, now owning 265 shares valued at $35,000 after acquiring an additional 122 shares. Additionally, RMG Wealth Management LLC established a new stake worth $45,000 during the same quarter. Currently, institutional investors and hedge funds collectively own 73.07% of PepsiCo’s stock.

Analysts Update Price Targets for PepsiCo Shares

Recent evaluations by several brokerages have provided insights into PepsiCo’s stock performance. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating for the company’s shares in a note released on July 17, 2023. Meanwhile, Royal Bank of Canada lowered its target price from $146.00 to $145.00, maintaining a “sector perform” rating. In contrast, Jefferies Financial Group raised its price target from $161.00 to $163.00, assigning a “hold” rating.

Furthermore, Bank of America increased its price objective from $150.00 to $155.00, while Evercore ISI adjusted its target from $150.00 to $152.00. Currently, seven equity research analysts have rated PepsiCo with a “buy” rating, while fourteen have assigned a “hold” rating, and one has given a “sell” rating. According to MarketBeat.com, the average rating for PepsiCo stands at “hold” with an average target price of $156.95.

PepsiCo’s stock opened at $151.55 on October 9, 2023. The company reports a debt-to-equity ratio of 2.26, a quick ratio of 0.72, and a current ratio of 0.91. With a market capitalization of $207.22 billion, its price-to-earnings (P/E) ratio is 28.81, and the P/E/G ratio is 3.69. The stock has displayed a 1-year low of $127.60 and a 1-year high of $174.00.

On October 9, 2023, PepsiCo announced its earnings results, reporting earnings per share (EPS) of $2.29, surpassing the consensus estimate of $2.26 by $0.03. The company achieved a net margin of 7.82% and a return on equity of 57.58%, with revenue for the quarter reaching $23.94 billion, compared to the consensus estimate of $23.91 billion. This represents a 2.7% increase in revenue year-over-year.

Looking ahead, PepsiCo has set its fiscal year 2025 guidance at $8.120 EPS, with analysts predicting the company will report $8.3 earnings per share for the current fiscal year.

PepsiCo, Inc. operates globally in the manufacturing, marketing, distribution, and sale of a variety of beverages and convenient foods. The company is structured into seven segments: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa, Middle East and South Asia, and Asia Pacific, Australia and New Zealand, and China Region.