PepsiCo, Inc. (NYSE:PEP)’s status as one of the world’s largest beverage companies has endeared it to many investors, along with its penchant for emerging market growth. But should you avoid investing in it?
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What’s more, it’s important to analyze the newest info surrounding PepsiCo, Inc. (NYSE:PEP).
What does the smart money think about PepsiCo, Inc. (NYSE:PEP)?
At the end of the second quarter, a total of 46 of the hedge funds we track were long in this stock, a change of -2% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings substantially.
According to our 13F database, Yacktman Asset Management, managed by Donald Yacktman, holds the most valuable position in PepsiCo, Inc. (NYSE:PEP). Yacktman Asset Management has a $1.8774 billion position in the stock, comprising 8.9% of its 13F portfolio. The second largest stake is held by Nelson Peltz of Trian Partners, with a $1.0036 billion position; the fund has 19.8% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Ken Fisher’s Fisher Asset Management, Boykin Curry’s Eagle Capital Management and Kerr Neilson’s Platinum Asset Management.
Judging by the fact that PepsiCo, Inc. (NYSE:PEP) has faced a fall in interest from the entirety of the hedge funds we track, logic holds that there were a few fund managers who sold off their full holdings at the end of the second quarter. At the top of the heap, James Crichton and Adam Weiss’s Scout Capital Management cut the biggest investment of all the hedgies we track, comprising close to $255.1 million in stock. Larry Foley and Paul Farrell’s fund, Bronson Point Partners, also cut its stock, about $31.6 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds at the end of the second quarter.
How have insiders been trading PepsiCo, Inc. (NYSE:PEP)?
Legal insider trading, particularly when it’s bullish, is best served when the company in question has experienced transactions within the past half-year. Over the last 180-day time period, PepsiCo, Inc. (NYSE:PEP) has experienced 1 unique insiders buying, and 11 insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to PepsiCo, Inc. (NYSE:PEP). These stocks are Dr Pepper Snapple Group Inc. (NYSE:DPS), Coca-Cola HBC S.A. (ADR) (NYSE:CCH), Coca-Cola Enterprises Inc (NYSE:CCE), Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF), and The Coca-Cola Company (NYSE:KO). All of these stocks are in the beverages – soft drinks industry and their market caps match PEP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Dr Pepper Snapple Group Inc. (NYSE:DPS) | 22 | 1 | 9 |
| Coca-Cola Enterprises Inc (NYSE:CCE) | 31 | 0 | 6 |
| Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) | 12 | 0 | 0 |
| The Coca-Cola Company (NYSE:KO) | 56 | 1 | 11 |
Using the results explained by the previously mentioned research, regular investors should always keep one eye on hedge fund and insider trading activity, and PepsiCo, Inc. (NYSE:PEP) shareholders fit into this picture quite nicely.
