North Star Asset Management Increases Stake in PepsiCo by 4.2%

North Star Asset Management Inc. has increased its stake in PepsiCo, Inc. by 4.2% during the second quarter of 2023. According to its recent 13F filing with the Securities and Exchange Commission, the institutional investor now holds a total of 68,690 shares after acquiring an additional 2,767 shares during this period. The value of North Star’s holdings in PepsiCo reached approximately $9.07 million at the end of the quarter.

Several other large investors have also adjusted their positions in PepsiCo. Vanguard Group Inc. boosted its stake by 1.3% in the same quarter, now owning 136,936,037 shares valued at $18.08 billion after adding 1,761,785 shares. Geode Capital Management LLC increased its holdings by 0.3%, bringing its total to 32,675,492 shares, valued at around $4.30 billion after acquiring 86,695 shares.

Charles Schwab Investment Management Inc. made a notable increase of 9.7%, resulting in ownership of 29,031,404 shares worth approximately $3.83 billion. Franklin Resources Inc. significantly raised its position by 19.5%, now holding 15,577,073 shares valued at about $2.06 billion. Additionally, UBS Asset Management increased its stake by 1.8% during the first quarter, now owning 11,525,812 shares worth around $1.73 billion. Overall, institutional investors collectively hold 73.07% of PepsiCo’s stock.

PepsiCo’s stock performance has been robust, opening at $145.50 on October 10, 2023. The stock’s fifty-day simple moving average stands at $145.47, while the two-hundred-day moving average is $140.69. Over the past year, the stock has reached a low of $127.60 and a high of $165.13. Financial metrics show a quick ratio of 0.72, a current ratio of 0.91, and a debt-to-equity ratio of 2.26. PepsiCo has a market capitalization of approximately $198.95 billion, with a price-to-earnings (P/E) ratio of 27.66 and a price/earnings growth (PEG) ratio of 3.56.

In a separate announcement, PepsiCo revealed a quarterly dividend of $1.4225 per share, to be paid on January 6, 2024. Shareholders of record as of December 5, 2023 will receive this dividend, which translates to an annualized yield of 3.9%. The company’s payout ratio stands at 108.17%, indicating a commitment to returning value to shareholders, albeit above its earnings.

Wall Street analysts have provided various insights regarding PepsiCo’s stock. Rothschild & Co Redburn revised its target price from $115.00 to $117.00, maintaining a “sell” rating. Conversely, Evercore ISI increased its target price from $150.00 to $152.00. The Goldman Sachs Group raised its target from $165.00 to $167.00, giving a “buy” rating. UBS Group decreased its target from $175.00 to $170.00 while keeping a “buy” rating. Citigroup lowered its price objective from $168.00 to $165.00, also maintaining a “buy” rating.

Currently, seven analysts have rated PepsiCo with a “buy” rating, fourteen have assigned a “hold” rating, and one has issued a “sell” rating. According to data from MarketBeat.com, PepsiCo holds a consensus rating of “hold” with an average target price of $156.90.

PepsiCo, Inc. operates globally in the manufacture, marketing, distribution, and sale of various beverages and convenient foods. The company is divided into seven segments, including Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America, among others. As the company continues to adapt in a competitive market, investor confidence remains a critical factor in its ongoing success.