Donaldson Capital Buys 3,850 PepsiCo Shares, Elevates Stake to $28.4M
Donaldson Capital Management boosted its PepsiCo stake by 1.9% in Q3, acquiring 3,850 additional shares to hold 202,258 shares worth $28.41 million. The company declared a $1.4225 quarterly dividend ($5.69 annualized, 3.7% yield) and institutional investors now own 73.07% of stock.
1. Fourth Quarter Earnings Projection
PepsiCo is set to report its fourth quarter results before the opening bell on February 3. Analysts surveyed by Benzinga Pro forecast earnings of 2.24 per share, a 14.3% increase from 1.96 per share in the year-ago period. Revenue consensus stands at 28.97 billion, up from 27.78 billion a year earlier. This top‐line growth would mark the company’s sixth consecutive quarter of year‐over‐year revenue increases and reflects ongoing strength in both snack and beverage segments across North America and international markets.
2. Dividend Income Strategy
With an annualized dividend of 5.69 per share and a yield of 3.70%, investors targeting 6,000 USD of annual dividend income would need to own about 1,054 shares. For a more modest 1,200 USD annual dividend, roughly 211 shares are required. These calculations divide the desired income by the per‐share annual dividend and assume the current payout remains unchanged. Investors should note that fluctuations in the share price or dividend rate will alter the yield and required share count over time.
3. Institutional Buying Activity
In the third quarter, Donaldson Capital Management increased its stake by 3,850 shares to 202,258 shares, representing a 1.9% uptick in its PepsiCo holdings. Other small institutional investors, including Evolution Wealth Management and JCIC Asset Management, initiated new positions valued at approximately 27,000 each. Meanwhile, Vermillion & White Wealth Management more than doubled its position to 234 shares, and Halbert Hargrove Global Advisors boosted its stake by 667.7% to 238 shares. Overall, institutional investors now control roughly 73% of the company’s shares.
4. Analyst Ratings and Price Targets
UBS reaffirmed a Buy rating in mid‐January while modestly lowering its target to 170. Piper Sandler maintains an Overweight view with a target of 172, and HSBC holds at Neutral with a target of 152. Jefferies and Rothschild & Co Redburn are split between Hold and Sell, with targets ranging from 120 to 164. Of the 21 analysts covering the stock, one assigns a Strong Buy, nine assign Buy, ten assign Hold, and one a Sell, yielding a consensus Hold rating.