Archer Investment Corp Takes Position in PepsiCo, Inc. $PEP

Key Points

• Archer Investment Corp. initiated a PepsiCo stake of 9,996 shares valued at approximately $1.35 million in the second quarter. Institutional investors collectively own 73.07% of PEP.
• PepsiCo reported quarterly EPS of $2.20 and revenue of $24.18 billion, exceeding analyst estimates, while revenue increased 6.4% year over year. The company declared a $1.48 quarterly dividend, equivalent to a 4.2% annual yield.
• PEP trades near $139.79, below its 200-day moving average, and analysts maintain a consensus “Hold” rating with a $157.90 target price. Investors are weighing its attractive valuation and dividend against softer North American demand and geopolitical risks, including damage to a Ukraine facility.

Archer Investment Corp purchased a new stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 9,996 shares of the company's stock, valued at approximately $1,353,000.

Several other hedge funds also recently added to or reduced their stakes in PEP. Auto Owners Insurance Co grew its stake in PepsiCo by 14,857.8% during the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after buying an additional 48,923,629 shares during the last quarter. Norges Bank purchased a new position in shares of PepsiCo during the fourth quarter worth approximately $3,018,813,000. Bank of America Corp DE purchased a new position in shares of PepsiCo during the second quarter worth approximately $2,755,509,000. Legal & General Group Plc acquired a new position in shares of PepsiCo in the 2nd quarter valued at $1,200,274,000. Finally, Corient Private Wealth LP purchased a new stake in PepsiCo in the 2nd quarter valued at $297,116,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.12% of the stock is currently owned by company insiders.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is participating with Mondelēz International and pladis in a circular food-packaging trial. The initiative could support sustainability goals and help develop more scalable packaging solutions, although the near-term financial impact is likely limited. Mondelēz International, PepsiCo and pladis collaborate to advance the future of food packaging
• Positive Sentiment: A partnership with Carlsberg reportedly helped grow the brewer’s soft-drinks segment by 9%, highlighting the potential for PepsiCo’s distribution and beverage partnerships to generate incremental volume. PepsiCo Partnership Grows Carlsberg Soft Drink Segment by 9%
• Positive Sentiment: Analysts and investors continue to view PEP’s discounted valuation and dividend yield as attractive relative to Coca-Cola, particularly for income-focused investors. Snack-market share gains and beverage resilience could support a gradual recovery. PepsiCo Is Struggling While Coca-Cola Hits All-Time Highs
• Neutral Sentiment: PepsiCo’s North American business faces softer consumer spending and pressure in key food categories. However, snack share gains and stronger beverages suggest management may be dealing with a temporary slowdown rather than a permanently weaker franchise. PepsiCo's North America Challenge: Temporary or Structural?
• Neutral Sentiment: Indian authorities reportedly seized PepsiCo-branded products connected to an alleged operation that falsified expiration dates and nutrition labels. PepsiCo and Coca-Cola were not accused of wrongdoing, limiting direct liability but creating some reputational and supply-chain attention. India busts firm faking expiry dates, nutrition labels on PepsiCo and Nestle food exports
• Negative Sentiment: PepsiCo confirmed damage to a production facility in Ukraine following a reported Russian strike. No injuries were reported, but possible disruption, repair costs and uncertainty about the site’s operating capacity add to geopolitical and execution risks. PepsiCo confirms damage to Ukraine plant

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $139.79 on Wednesday. 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 company's 50-day moving average price is $139.80 and its 200 day moving average price is $149.00. PepsiCo, Inc. has a 52 week low of $133.73 and a 52 week high of $171.48. The stock has a market cap of $190.80 billion, a price-to-earnings ratio of 18.32, a PEG ratio of 3.08 and a beta of 0.35.

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

PepsiCo Dividend Announcement

The company also recently declared 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. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's dividend payout ratio (DPR) is currently 77.59%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on PEP shares. UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Jefferies Financial Group reduced their price objective on PepsiCo from $162.00 to $152.00 and set a "hold" rating for the company in a research note on Friday, July 10th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Wells Fargo & Company dropped their target price on PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Finally, BNP Paribas Exane lowered their target price on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a report on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PepsiCo has a consensus rating of "Hold" and a consensus target price of $157.90.

PepsiCo 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.

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