Chesley Taft & Associates LLC Lowers Position in PepsiCo, Inc. $PEP

Chesley Taft & Associates LLC trimmed its position in shares of PepsiCo, Inc. (NASDAQ:PEP) by 2.9% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 162,052 shares of the company’s stock after selling 4,917 shares during the quarter. PepsiCo makes up about 0.9% of Chesley Taft & Associates LLC’s portfolio, making the stock its 29th biggest holding. Chesley Taft & Associates LLC’s holdings in PepsiCo were worth $21,942,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Evergreen Advisors LLC purchased a new position in shares of PepsiCo during the 1st quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in PepsiCo in the 4th quarter worth $26,000. Swiss RE Ltd. acquired a new position in PepsiCo during the fourth quarter worth $28,000. Networth Advisors LLC raised its position in PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after acquiring an additional 200 shares during the period. Finally, Vermillion Wealth Management Inc. lifted its holdings in PepsiCo by 99.1% during the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company’s stock valued at $34,000 after purchasing an additional 108 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Valuation-focused analysis suggests PEP may be trading below its estimated intrinsic value based on discounted cash flow and traditional market multiples. The decline may have already lowered investor expectations, creating potential upside if execution improves. PepsiCo Stock Looks Reasonable As Shares Fell 16% In 3 Years
• Positive Sentiment: PepsiCo’s price-pack strategy is reportedly helping revive U.S. salty-snack volumes. Sustained volume improvement through late 2026 and into 2027 could support revenue growth and earnings momentum. Can PepsiCo’s Price-Pack Strategy Successfully Boost Volumes in 2026?
• Positive Sentiment: Wall Street analysts remain moderately optimistic despite PEP’s underperformance versus the broader market. Its dividend yield above 4% and relatively modest valuation also make the shares appealing to income-oriented investors. Are Wall Street Analysts Predicting PepsiCo Stock Will Climb or Sink?
• Neutral Sentiment: PepsiCo is launching its Alvalle gazpacho brand in the United States, adding another product opportunity, although the near-term financial impact is likely limited. PepsiCo Launching Alvalle Gazpacho in U.S.
• Negative Sentiment: Commentary highlights PepsiCo’s weaker domestic sales and its lagging performance relative to Coca-Cola, reinforcing concerns that U.S. consumers may be resisting price increases or shifting spending. PepsiCo Lags Coca-Cola as Domestic Sales Stumble
• Negative Sentiment: PepsiCo’s dividend payout has approached 90% of free cash flow, raising questions about long-term dividend flexibility despite recent earnings acceleration. PepsiCo’s 90% Payout Ratio Looks Unsustainable
• Negative Sentiment: India’s food regulator will not extend the deadline for energy-drink labeling requirements affecting PepsiCo and other beverage makers, potentially increasing compliance costs or limiting marketing flexibility. FSSAI Won’t Ease Energy Drink Label Deadline

PepsiCo Price Performance

NASDAQ:PEP opened at $139.02 on Friday. PepsiCo, Inc. has a one year low of $133.73 and a one year high of $171.48. The stock has a market cap of $189.75 billion, a PE ratio of 18.22, a P/E/G ratio of 3.04 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The stock has a 50 day moving average price of $140.48 and a 200 day moving average price of $150.80.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. During the same quarter in the previous year, the company posted $0.92 earnings per share. The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts expect that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be paid a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.3%. PepsiCo’s payout ratio is 77.59%.

Wall Street Analyst Weigh In

PEP has been the subject of several research analyst reports. Evercore set a $150.00 price target on shares of PepsiCo in a research report on Thursday, July 9th. BNP Paribas Exane cut their price objective on PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a research note on Wednesday, July 8th. Barclays increased their target price on PepsiCo from $138.00 to $142.00 and gave the company an “equal weight” rating in a report on Tuesday, July 21st. Wall Street Zen lowered PepsiCo from a “buy” rating to a “hold” rating in a research note on Saturday, April 18th. Finally, Citigroup cut PepsiCo from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $170.00 to $145.00 in a research report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $157.90.

Insiders Place Their Bets

In other news, EVP David Flavell sold 2,900 shares of the stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.12% of the stock is owned by insiders.

About PepsiCo

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.