Lantz Financial Sells 8,766 Shares of PepsiCo, Adjusts Holdings

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

The adjustment in Lantz Financial’s investment comes amid a broader trend, as several other institutional investors have also modified their holdings in PepsiCo. For instance, Evolution Wealth Management Inc. acquired a new stake valued at about $27,000 in the second quarter. Additionally, JCIC Asset Management Inc. entered the market with a new position worth $27,000 during the third quarter.

Vermillion & White Wealth Management Group LLC has increased its stake in PepsiCo by 107.1%, now owning 234 shares valued at $31,000. Similarly, Halbert Hargrove Global Advisors LLC boosted its holdings by an impressive 667.7% in the third quarter, bringing its total to 238 shares worth $33,000. Frazier Financial Advisors LLC also grew its position by 85.3% during the second quarter, now holding 265 shares valued at $35,000. Currently, institutional investors own around 73.07% of PepsiCo’s stock.

Recent Performance and Outlook

PepsiCo recently reported its earnings results on February 3, 2024, revealing an earnings per share (EPS) of $2.26 for the quarter. This figure surpassed analysts’ expectations, which had set the consensus at $2.24. The company also achieved revenue of $29.34 billion, exceeding the anticipated $28.96 billion. Year-over-year, PepsiCo experienced a revenue increase of 5.6%, up from $1.96 EPS reported in the same quarter the previous year.

Looking ahead, PepsiCo has provided guidance for fiscal year 2026, projecting an EPS of between $8.550 and $8.710. Analysts predict that the company will report an EPS of $8.30 for the current year.

The board of PepsiCo announced a stock repurchase program on February 3, allowing for the buyback of up to $10 billion in outstanding shares. This authorization permits the company to repurchase as much as 4.7% of its shares through open market purchases, an indication that the leadership believes the stock is undervalued.

Dividend Announcement and Analyst Ratings

In addition to the stock repurchase program, PepsiCo has declared a quarterly dividend of $1.4225, set to be distributed on March 31, 2024. Investors on record as of March 6 will receive this dividend, which translates to an annualized total of $5.69 and a yield of 3.3%. The company’s payout ratio currently stands at 94.83%.

Several research analysts have weighed in on PepsiCo’s stock. Wells Fargo & Company increased its price target from $154.00 to $165.00, maintaining an “equal weight” rating. DZ Bank raised its rating from “hold” to “buy,” setting a target price of $167.00. Citigroup also boosted its target from $170.00 to $182.00, giving the stock a “buy” rating. Barclays adjusted its price objective from $148.00 to $160.00 while maintaining an “equal weight” rating.

According to data from MarketBeat.com, the stock currently holds a consensus rating of “Hold,” with an average target price of $167.16. Overall, eight analysts have rated the stock as a Buy, ten as a Hold, and one as a Sell.

PepsiCo remains a major player in the global food and beverage market, headquartered in Purchase, New York. The company offers a diverse range of products, including popular brands such as Pepsi, Mountain Dew, Gatorade, and Lay’s. As the market evolves, PepsiCo’s strategic decisions and financial performance will continue to be closely monitored by investors and analysts alike.