Lantz Financial Reduces PepsiCo Stake by 64.4% in Q3

Lantz Financial LLC significantly reduced its holdings in PepsiCo, Inc. (NASDAQ: PEP) by selling 8,766 shares during the third quarter of 2023. This move represents a 64.4% decrease in their position, leaving the fund with 4,844 shares valued at approximately $680,000 at the end of the reporting period, according to a recent disclosure with the U.S. Securities and Exchange Commission (SEC).

The decision by Lantz Financial LLC reflects a broader trend among institutional investors regarding their stakes in PepsiCo. Several other funds have also adjusted their positions in the company recently. For instance, Evolution Wealth Management Inc. acquired a new stake in PepsiCo valued at about $27,000 in the second quarter. Similarly, JCIC Asset Management Inc. made a new investment in the third quarter, also worth around $27,000.

Other notable changes include Vermillion & White Wealth Management Group LLC, which increased its position in PepsiCo by 107.1% during the second quarter, now holding 234 shares valued at $31,000. Halbert Hargrove Global Advisors LLC also boosted its stake significantly by 667.7% in the third quarter, owning 238 shares valued at $33,000 after an additional purchase of 207 shares. Finally, Frazier Financial Advisors LLC expanded its holdings by 85.3%, now possessing 265 shares valued at $35,000.

Hedge funds and institutional investors collectively own 73.07% of PepsiCo’s stock, indicating strong institutional interest in the company.

PepsiCo’s Recent Financial Performance

PepsiCo recently reported its earnings for the previous quarter, revealing an earnings per share (EPS) of $2.26. This figure surpassed analysts’ expectations of $2.24 by $0.02. The company also achieved revenue of $29.34 billion, exceeding the consensus estimate of $28.96 billion. The firm recorded a return on equity of 57.92% and a net margin of 8.77%, demonstrating robust financial health.

The current quarter’s performance reflects a 5.6% increase in revenue compared to the same period last year, where the company earned $1.96 earnings per share. Looking ahead, PepsiCo has set its guidance for fiscal year 2026 at an EPS range of $8.550 to $8.710. Analysts predict that PepsiCo will report an EPS of $8.30 for the current year.

Stock Buyback and Dividend Announcements

On February 3, 2024, PepsiCo’s board announced a substantial stock repurchase program, authorizing the buyback of up to $10.00 billion in outstanding shares. This initiative allows the company to repurchase up to 4.7% of its shares in the open market, which often indicates that the company’s leadership perceives its stock as undervalued.

Moreover, PepsiCo declared a quarterly dividend of $1.4225 per share, set to be paid on March 31, 2024. Investors of record on March 6, 2024 will receive this payment, representing an annualized dividend of $5.69 and a dividend yield of 3.3%. The company’s current payout ratio stands at 94.83%, reflecting its commitment to returning value to shareholders.

Wall Street analysts have varied opinions on PepsiCo’s stock. Recently, Wells Fargo & Company raised its price target from $154.00 to $165.00, maintaining an “equal weight” rating. DZ Bank upgraded its rating from “hold” to “buy” and set a target price of $167.00. Citigroup also increased its target from $170.00 to $182.00, while Barclays raised its objective from $148.00 to $160.00.

Currently, eight analysts have rated PepsiCo with a “Buy” rating, while ten have issued a “Hold” rating, and one has given it a “Sell” rating. According to data from MarketBeat.com, the stock holds a consensus rating of “Hold” with a target price of $167.16.

PepsiCo, Inc. is a leading global food and beverage company based in Purchase, New York. It develops and markets a diverse range of products, including popular brands such as Pepsi, Mountain Dew, Gatorade, and Tropicana. The company was formed through the merger of Pepsi-Cola and Frito-Lay in 1965, and it has since expanded into a significant player in the global market.