Charter Research Reduces PepsiCo Stake, Analysts Adjust Price Targets

Charter Research & Investment Group Inc. has reduced its stake in PepsiCo, Inc. (NASDAQ: PEP) by 2.0% during the second quarter of 2023, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor now holds 28,960 shares, down from 29,540 shares after selling 580 shares in the quarter. This adjustment means PepsiCo represents 2.9% of Charter Research’s total holdings, making it the firm’s eighth largest investment, valued at approximately $3,824,000.

Other institutional investors have also made moves regarding PepsiCo shares. For instance, JSF Financial LLC increased its holdings by 3.8%, now owning 1,897 shares worth $250,000 after acquiring an additional 69 shares. Dogwood Wealth Management LLC saw a significant boost of 15.4% in their holdings, bringing their total to 539 shares valued at $73,000. Similarly, Joel Isaacson & Co. LLC raised its position by 0.5%, acquiring an additional 74 shares to reach a total of 16,507 shares worth $2,180,000.

PepsiCo’s overall landscape shows that hedge funds and institutional investors control 73.07% of the company’s stock. On Thursday, October 10, 2023, PepsiCo shares opened at $144.39, contributing to the company’s market capitalization of $197.43 billion. The stock has a price-to-earnings ratio of 27.45, a PEG ratio of 3.56, and a beta of 0.45. Notably, PepsiCo’s one-year performance has shown a low of $127.60 and a high of $166.88.

Analysts Offer Mixed Reviews

PepsiCo has attracted attention from several research analysts, leading to varying adjustments in price targets. Barclays raised its target on October 10, increasing it from $140.00 to $142.00 while maintaining an “equal weight” rating. In a separate report, Loop Capital set a higher target at $164.00, reflecting optimism about the company’s future performance.

Conversely, Citigroup reduced its price target from $168.00 to $165.00, though it continues to endorse a “buy” rating. Morgan Stanley also adjusted its price objective, increasing it from $153.00 to $165.00, while keeping an “equal weight” rating on the stock. DZ Bank upgraded its stance on PepsiCo from “hold” to “buy,” setting a target price of $167.00.

The consensus among analysts indicates a predominantly cautious outlook, with seven rating the stock as a buy, fourteen as hold, and one as sell. Based on data from MarketBeat.com, the average rating stands at “Hold,” with a consensus price target of $156.95.

PepsiCo’s Business Overview

PepsiCo, Inc. is a global leader in the manufacture, marketing, and distribution of a wide range of beverages and convenient foods. The company operates through seven segments, including Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America, among others. This diversified structure allows PepsiCo to maintain a robust presence in various markets worldwide, catering to diverse consumer preferences.

As institutional investors continue to refine their positions in PepsiCo, the ongoing adjustments reflect broader market trends and investor sentiment. The shifts in shareholding may influence PepsiCo’s market trajectory in the coming months, particularly as analysts provide updated evaluations of the company’s financial health and growth potential.