Franklin Resources Inc. Reduces Stock Position in PepsiCo, Inc. $PEP

Franklin Resources Inc. trimmed its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP) by 3.3% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 15,060,657 shares of the company’s stock after selling 516,416 shares during the period. Franklin Resources Inc. owned 1.10% of PepsiCo worth $2,115,119,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also made changes to their positions in PEP. Evolution Wealth Management Inc. purchased a new stake in PepsiCo during the second quarter worth approximately $27,000. JCIC Asset Management Inc. purchased a new position in PepsiCo in the third quarter valued at approximately $27,000. Vermillion & White Wealth Management Group LLC raised its holdings in PepsiCo by 107.1% during the second quarter. Vermillion & White Wealth Management Group LLC now owns 234 shares of the company’s stock worth $31,000 after purchasing an additional 121 shares in the last quarter. Halbert Hargrove Global Advisors LLC lifted its position in shares of PepsiCo by 667.7% during the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 238 shares of the company’s stock worth $33,000 after buying an additional 207 shares during the last quarter. Finally, Manning & Napier Advisors LLC acquired a new position in shares of PepsiCo in the 3rd quarter valued at $37,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Down 0.5%

Shares of NASDAQ:PEP opened at $160.78 on Wednesday. PepsiCo, Inc. has a 1-year low of $127.60 and a 1-year high of $171.48. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The stock has a market cap of $219.73 billion, a P/E ratio of 26.80, a P/E/G ratio of 3.10 and a beta of 0.39. The firm has a fifty day moving average price of $155.72 and a 200 day moving average price of $149.45.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings data on Monday, February 2nd. The company reported $2.26 EPS for the quarter, beating analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The company had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. During the same period in the previous year, the business posted $1.96 earnings per share. PepsiCo’s quarterly revenue was up 5.6% on a year-over-year basis. Sell-side analysts predict that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo announced that its board has approved a stock buyback program on Tuesday, February 3rd that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 4.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

PepsiCo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be given a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend is Friday, March 6th. PepsiCo’s dividend payout ratio (DPR) is presently 94.83%.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Short sellers trimmed positions sharply in February—short interest fell ~29.7% to ~20.84M shares, leaving only ~1.5% of float short and a short‑interest ratio near 3.1 days; reduced short pressure can limit downside volatility.
• Positive Sentiment: Recent quarterly results showed an EPS beat ($2.26 vs $2.24 est.) and revenue above expectations with revenue up ~5.6% year‑over‑year, supporting the company’s 2026 turnaround messaging.
• Positive Sentiment: New product and brand moves continue: PepsiCo launched protein Doritos, expanding into higher‑margin/health‑adjacent snack formats. PepsiCo launches protein Doritos
• Positive Sentiment: Brand extension: PepsiCo opened a Lay’s‑branded restaurant concept in Madrid, a retail/marketing play that can boost brand engagement and provide new direct‑to‑consumer learnings. PepsiCo opens first Lay’s-branded restaurant in Spain
• Neutral Sentiment: Analysts’ fair‑value models moved only slightly (e.g., to ~$170.81), reflecting a mix of confidence in the turnaround but caution—small changes, not a broad re‑rating. How PepsiCo (PEP) Narrative Is Evolving Around 2026 Turnaround Goals And Fair Value
• Neutral Sentiment: Long‑term category trends (healthy/plant‑based foods, oats growth) support product innovation opportunities for PepsiCo but represent multi‑year upside rather than immediate earnings drivers. United States Healthy Foods Analysis Report 2025: A $400+ Billion Market by 2033, Driven by Plant-Based Nutrition, Functional Foods and Rapid Growth of Online Health Food Retail
• Neutral Sentiment: Dividend safety comparisons with Coca‑Cola are being re‑examined by outlets, keeping investors focused on balance‑sheet and cash‑flow metrics rather than changing the near‑term trade. Coke vs Pepsi: Which Dividend Is Actually Safer?
• Negative Sentiment: Competitive pressure: Coca‑Cola has posted a strong run (KO up sharply over the past month), which can shift sector flows and investor preference away from PepsiCo in the near term. Coca-Cola Stock Rises 12.5% in a Month: Buy the Rally or Wait?
• Negative Sentiment: Activist attention on slower‑growing packaged‑food names remains a risk for the sector (calls for cost cuts, portfolio changes) and could increase pressure on PepsiCo’s stock if investor activism intensifies. Activist Investors Target Food Companies as Growth Slows. Lamb Weston Is the Latest.

Analysts Set New Price Targets

PEP has been the topic of a number of recent analyst reports. BNP Paribas Exane reaffirmed an “outperform” rating on shares of PepsiCo in a research report on Wednesday, February 4th. Barclays upped their price objective on shares of PepsiCo from $148.00 to $160.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Royal Bank Of Canada raised their price objective on PepsiCo from $156.00 to $165.00 and gave the stock a “sector perform” rating in a report on Monday, March 2nd. Wells Fargo & Company lifted their target price on PepsiCo from $154.00 to $165.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Finally, Citigroup upped their target price on PepsiCo from $170.00 to $182.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, PepsiCo has a consensus rating of “Hold” and a consensus price target of $168.50.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.