Sterling Capital Trims Stake in Nestlé S.A. Amid FMCG Sector Rebalancing
Sterling Capital Management LLC has reduced its holdings in Nestlé S.A. (OTCMKTS: NSRGY), signaling a potential shift in investment strategies within the fast-moving consumer goods sector. The asset manager lowered its position by 1.9% in the fourth quarter of 2024, now holding 77,014 shares valued at approximately $8.42 million, according to a recent disclosure with the U.S. Securities and Exchange Commission.
While the decrease may appear modest, such moves are noteworthy given Nestlé’s longstanding reputation as a FMCG bellwether and stability play for institutional investors. The Swiss multinational, whose portfolio includes major global brands such as Nescafé, KitKat, and Gerber, remains one of the world’s largest food and beverage companies by revenue.
Despite the sell-off, Nestlé’s stock continues to draw attention. Several equity research firms maintain positive outlooks: Barclays recently reaffirmed its “equal weight” rating, while JPMorgan Chase issued a “neutral” position. HSBC leaned slightly bullish with a “hold” rating and a price target of $114.00, citing consistent operational performance. Overall, data from MarketBeat indicates that among brokers covering NSRGY, the average recommendation is “Hold” with a consensus price target of $122.00.
Institutional activity surrounding Nestlé reflects broader trends in the FMCG industry, where investors are rebalancing portfolios amid persistent inflationary pressures and shifting consumer demand. The company’s latest earnings guidance and focus on operational efficiency remain key watchpoints for stakeholders assessing long-term value in developed markets.
Nestlé shares closed at $109.40 on Tuesday, with a market cap hovering near $281.25 billion, a price-to-earnings ratio of 26.01, and a 12-month beta of 0.56—signaling relatively low volatility compared to broader equity indices.
The stock also provides a dividend yield of 2.54%, boosting its appeal to income-focused investors. The next quarterly dividend is scheduled for issuance on July 8, with record holders as of April 24 eligible for the $2.91 per share payout.
As FMCG investors continue to evaluate risk-adjusted returns across their portfolios, movements