Auto Owners Insurance Co Purchases 48,923,629 Shares of PepsiCo, Inc. $PEP

Key Points

• Auto Owners Insurance Co massively increased its PepsiCo stake in the fourth quarter, buying 48.9 million additional shares and lifting its position by 14,857.8%. PepsiCo now represents about 1.7% of the fund’s portfolio and was valued at roughly $7.07 billion.
• Institutional ownership of PepsiCo remains high at 73.07%, with several other funds also adding to their positions. Recent analyst views are mixed, but the consensus rating is still Hold with an average price target of $167.10.
• PepsiCo recently beat earnings and revenue estimates for the quarter and raised its dividend to $1.48 per share, implying an annualized yield of 4.2%. The company also continues to draw attention for AI-driven efficiency efforts and high-profile marketing campaigns to support growth.

Auto Owners Insurance Co grew its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 14,857.8% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 49,252,907 shares of the company's stock after purchasing an additional 48,923,629 shares during the quarter. PepsiCo makes up about 1.7% of Auto Owners Insurance Co's portfolio, making the stock its 12th largest position. Auto Owners Insurance Co owned 3.60% of PepsiCo worth $7,068,777,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the company. Captrust Financial Advisors raised its position in shares of PepsiCo by 3.6% during the third quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock worth $77,916,000 after purchasing an additional 19,218 shares during the period. Swiss Life Asset Management Ltd raised its stake in shares of PepsiCo by 11.4% in the fourth quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company's stock worth $59,600,000 after purchasing an additional 42,335 shares during the last quarter. Murphy Middleton Hinkle & Parker Inc. lifted its holdings in shares of PepsiCo by 622.3% in the fourth quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock valued at $5,110,000 after purchasing an additional 30,674 shares in the last quarter. Allstate Corp boosted its position in shares of PepsiCo by 108.1% during the fourth quarter. Allstate Corp now owns 104,723 shares of the company's stock valued at $15,030,000 after buying an additional 54,405 shares during the last quarter. Finally, National Pension Service grew its holdings in PepsiCo by 2.5% during the fourth quarter. National Pension Service now owns 3,143,939 shares of the company's stock worth $451,218,000 after buying an additional 77,051 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s management is being spotlighted for using AI and digital tools to improve operations, strengthen food-system resilience, and support a broader global transformation strategy, which could bolster long-term efficiency and growth. Building a Lighthouse Company: Athina Kanioura on Leading PepsiCo’s Global Transformation
• Positive Sentiment: PepsiCo is also being discussed as a beneficiary of AI adoption across food and beverage companies, which may support productivity and growth initiatives over time. PepsiCo, Danone & Nestlé: how AI is powering F&B growth
• Positive Sentiment: A new Doritos Loaded commercial featuring Gordon Ramsay and Formula 1 driver George Russell underscores PepsiCo’s willingness to spend on high-profile marketing to support snack brand visibility and demand. PepsiCo: Doritos Loaded Unveils High-Octane Commercial Starring Chef Gordon Ramsay And Mercedes-AMG Petronas F1 Driver George Russell
• Neutral Sentiment: Several recent commentary pieces focus on PepsiCo’s valuation and dividend appeal, with one suggesting the shares may trade below fair value while another argues for caution and calls the stock a possible sell, leaving investor sentiment mixed. PepsiCo (PEP) Stock Could Be 46.9% Below Fair Value as Views Split
• Neutral Sentiment: PepsiCo remains a frequent feature in dividend-investing discussions, reinforcing its reputation as a defensive income stock rather than signaling a new catalyst. PepsiCo: Scoop Up This Dividend Growth Legend Now
• Negative Sentiment: Bearish market commentary argues PepsiCo has lagged the broader market since late 2025, which may weigh on sentiment if investors continue to favor faster-growing alternatives. 3 Reasons to Sell PEP and 1 Stock to Buy Instead

Analysts Set New Price Targets

Several brokerages have weighed in on PEP. Sanford C. Bernstein assumed coverage on PepsiCo in a research note on Thursday, June 11th. They set a "market perform" rating and a $143.00 price objective on the stock. UBS Group dropped their price target on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Deutsche Bank Aktiengesellschaft cut their price target on shares of PepsiCo from $173.00 to $168.00 and set a "buy" rating on the stock in a report on Thursday. JPMorgan Chase & Co. lifted their target price on shares of PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a research report on Friday, April 17th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, PepsiCo has a consensus rating of "Hold" and an average price target of $167.10.

PepsiCo Stock Performance

NASDAQ:PEP opened at $142.02 on Friday. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48. The stock's fifty day moving average price is $149.90 and its two-hundred day moving average price is $152.24. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company has a market cap of $194.11 billion, a P/E ratio of 22.30, a P/E/G ratio of 2.57 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.48 EPS. As a group, analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be given a dividend of $1.48 per share. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio (DPR) is currently 92.94%.

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.

Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.