Highland Capital Management LLC Grows Position in PepsiCo, Inc. (PEP)

Highland Capital Management LLC lifted its position in shares of PepsiCo, Inc. (NASDAQ:PEP) by 7.0% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 146,157 shares of the company’s stock after purchasing an additional 9,533 shares during the quarter. PepsiCo comprises 1.2% of Highland Capital Management LLC’s investment portfolio, making the stock its 16th biggest holding. Highland Capital Management LLC’s holdings in PepsiCo were worth $16,340,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in PEP. New England Asset Management Inc. raised its stake in PepsiCo by 4.7% during the second quarter. New England Asset Management Inc. now owns 41,126 shares of the company’s stock valued at $4,478,000 after buying an additional 1,850 shares during the last quarter. Bank of Montreal Can raised its stake in PepsiCo by 19.9% during the third quarter. Bank of Montreal Can now owns 3,227,392 shares of the company’s stock valued at $360,823,000 after buying an additional 536,023 shares during the last quarter. Fundsmith Equity Fund L.P. purchased a new position in PepsiCo during the second quarter valued at $836,330,000. Worldquant Millennium Quantitative Strategies LLC purchased a new position in PepsiCo during the second quarter valued at $4,223,000. Finally, Buckingham Capital Management Inc. raised its stake in PepsiCo by 5.6% during the second quarter. Buckingham Capital Management Inc. now owns 31,907 shares of the company’s stock valued at $3,474,000 after buying an additional 1,689 shares during the last quarter. Institutional investors own 70.58% of the company’s stock.

A number of research analysts have issued reports on PEP shares. Goldman Sachs Group reiterated a “sell” rating and set a $108.00 price objective on shares of PepsiCo in a research note on Monday, August 20th. BidaskClub cut PepsiCo from a “buy” rating to a “hold” rating in a research note on Thursday, August 23rd. Zacks Investment Research upgraded PepsiCo from a “hold” rating to a “buy” rating and set a $126.00 price objective for the company in a research note on Tuesday, September 11th. Guggenheim started coverage on PepsiCo in a research note on Thursday, September 13th. They set a “neutral” rating and a $117.00 price objective for the company. Finally, Macquarie set a $122.00 price objective on PepsiCo and gave the company an “outperform” rating in a research note on Friday, September 28th. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and seven have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $117.89.

PEP stock opened at $115.82 on Friday. PepsiCo, Inc. has a 1-year low of $95.94 and a 1-year high of $122.51. The company has a debt-to-equity ratio of 2.95, a current ratio of 1.31 and a quick ratio of 1.15. The firm has a market capitalization of $166.28 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 2.95 and a beta of 0.60.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Tuesday, October 2nd. The company reported $1.59 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.57 by $0.02. PepsiCo had a return on equity of 73.27% and a net margin of 7.66%. The firm had revenue of $16.49 billion during the quarter, compared to analysts’ expectations of $16.38 billion. During the same quarter in the previous year, the business earned $1.48 earnings per share. The company’s revenue was up 1.5% on a year-over-year basis. As a group, research analysts anticipate that PepsiCo, Inc. will post 5.65 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, January 7th. Stockholders of record on Friday, December 7th will be paid a $0.9275 dividend. This represents a $3.71 annualized dividend and a dividend yield of 3.20%. The ex-dividend date is Thursday, December 6th. PepsiCo’s dividend payout ratio is currently 70.94%.

In related news, CEO Mike Spanos sold 20,074 shares of the company’s stock in a transaction on Wednesday, October 31st. The stock was sold at an average price of $112.42, for a total transaction of $2,256,719.08. Following the completion of the sale, the chief executive officer now owns 35,520 shares in the company, valued at $3,993,158.40. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Laxman Narasimhan sold 5,500 shares of the company’s stock in a transaction on Thursday, October 4th. The shares were sold at an average price of $106.79, for a total value of $587,345.00. Following the sale, the chief executive officer now owns 130,135 shares of the company’s stock, valued at approximately $13,897,116.65. The disclosure for this sale can be found here. Insiders sold 205,893 shares of company stock valued at $22,663,157 in the last 90 days. Company insiders own 0.27% of the company’s stock.

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About PepsiCo

PepsiCo, Inc operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the brands Quaker, Aunt Jemima, Cap'n crunch, life, Quaker Chewy, and Rice-A-Roni.

See Also: Asset Allocation

Institutional Ownership by Quarter for PepsiCo (NASDAQ:PEP)

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