Saratoga Research & Investment Management Sells 8,589 Shares of PepsiCo, Inc. $PEP

Saratoga Research & Investment Management lowered its position in PepsiCo, Inc. (NASDAQ:PEP) by 5.0% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 164,728 shares of the company’s stock after selling 8,589 shares during the quarter. PepsiCo comprises 1.2% of Saratoga Research & Investment Management’s investment portfolio, making the stock its 22nd largest holding. Saratoga Research & Investment Management’s holdings in PepsiCo were worth $22,304,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock worth $19,875,205,000 after buying an additional 1,612,652 shares during the period. State Street Corp lifted its position in shares of PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co lifted its position in shares of PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after acquiring an additional 48,923,629 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company’s stock worth $4,814,835,000 after acquiring an additional 360,936 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its position in shares of PepsiCo by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company’s stock valued at $4,031,646,000 after purchasing an additional 295,955 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s 4% dividend increase and 54 consecutive years of dividend growth reinforce its appeal to income-focused investors. With shares trading at a valuation below that of rival Coca-Cola, analysts and financial commentators see potential for the valuation gap to narrow. 54 Straight Years: Why PepsiCo Remains a Dividend Investor’s Anchor
• Positive Sentiment: PepsiCo’s decade-low valuation is attracting attention from investors seeking a potential recovery in a large, established consumer-staples company. The thesis provides support for the stock despite recent pressure on its share price. PepsiCo: A Behemoth Trading At A Decade-Low Valuation
• Positive Sentiment: PepsiCo reported progress toward its pep+ sustainability goals, including efforts involving agriculture, emissions, packaging and healthier product formulations. Its reported increase in recycled content for plastic packaging may strengthen brand reputation and help address environmental concerns, although the near-term earnings impact is likely limited. PepsiCo Reports on Latest ESG Performance Towards pep+ Goals PepsiCo reports 2025 increase in recycled content for plastic packaging
• Neutral Sentiment: Gatorade added three-time Ballon d’Or winner Aitana Bonmatí to its athlete roster ahead of the football season. The partnership could support brand visibility and sports-drink sales, but its financial effect is not quantified. Gatorade Welcomes Aitana Bonmatí to Team Gatorade
• Neutral Sentiment: Hudson Valley Farms plans to acquire a former PepsiCo property. The transaction may streamline PepsiCo’s real-estate holdings, but no purchase price or material earnings impact was provided. Hudson Valley Farms to acquire former PepsiCo property

Insider Transactions at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction 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 transaction, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.12% of the company’s stock.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $140.79 on Monday. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The business has a 50-day moving average of $140.20 and a 200-day moving average of $150.60. The firm has a market capitalization of $192.16 billion, a price-to-earnings ratio of 18.45, a PEG ratio of 3.09 and a beta of 0.35. PepsiCo, Inc. has a 12 month low of $133.73 and a 12 month high of $171.48.

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

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s payout ratio is currently 77.59%.

Analyst Ratings Changes

Several research analysts have commented on PEP shares. Wells Fargo & Company cut their target price on PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. TD Cowen lowered their price target on shares of PepsiCo from $150.00 to $145.00 and set a “hold” rating on the stock in a report on Friday, July 10th. Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Monday, July 6th. UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Finally, Bank of America cut their price target on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating for the company in a report on Thursday, June 25th. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $157.90.

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.