Azimuth Capital Investment Management LLC Cuts Stock Position in PepsiCo, Inc. $PEP

Key Points

• Azimuth Capital Investment Management reduced its PepsiCo stake by 6.2% in the second quarter, selling 17,116 shares and retaining 257,953 shares worth approximately $34.9 million. Institutional investors collectively own 73.07% of the company.
• PepsiCo reported quarterly revenue of $24.18 billion and adjusted earnings of $2.20 per share, narrowly exceeding analyst estimates, while revenue increased 6.4% year over year. Shares recently traded at $137.63, near their 52-week low.
• The company declared a quarterly dividend of $1.48, equivalent to $5.92 annually and a 4.3% yield. Analysts maintain a consensus “Hold” rating with an average price target of $157.90, amid concerns about soft North American demand and operational challenges.

Azimuth Capital Investment Management LLC cut its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 6.2% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 257,953 shares of the company's stock after selling 17,116 shares during the quarter. PepsiCo comprises approximately 1.2% of Azimuth Capital Investment Management LLC's holdings, making the stock its 11th largest holding. Azimuth Capital Investment Management LLC's holdings in PepsiCo were worth $34,927,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Riverview Capital Advisers LLC raised its stake in shares of PepsiCo by 7.1% during the 2nd quarter. Riverview Capital Advisers LLC now owns 3,217 shares of the company's stock worth $436,000 after acquiring an additional 212 shares in the last quarter. Advisory Solutions Group LLC purchased a new stake in PepsiCo in the second quarter valued at about $404,000. Compass Financial Management LLC acquired a new stake in PepsiCo in the 2nd quarter worth approximately $325,000. NI Acquisitions Company LLC acquired a new position in shares of PepsiCo in the 2nd quarter valued at $69,000. Finally, NBH Bank acquired a new stake in shares of PepsiCo during the second quarter worth about $1,098,000. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Trading Down 1.7%

Shares of PEP stock opened at $137.63 on Friday. The stock has a market capitalization of $187.85 billion, a P/E ratio of 18.04, a price-to-earnings-growth ratio of 2.90 and a beta of 0.35. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. 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 company has a 50 day moving average price of $139.70 and a 200 day moving average price of $148.55.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating 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 last year, the company earned $0.92 EPS. PepsiCo'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 predict that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Dividend Announcement

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

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo plans to build a Frito-Lay distribution warehouse near California’s Sonoma County airport. The facility could expand regional distribution capacity and support future sales growth. PepsiCo plans Frito-Lay distribution warehouse near Sonoma County airport
• Positive Sentiment: Publicis Groupe won PepsiCo’s global media account from Omnicom. The change may help PepsiCo modernize marketing, improve digital capabilities and respond more effectively to changing consumer preferences. PepsiCo hands global media to Publicis amid transformation at CPG giant
• Positive Sentiment: Analysts and financial commentators see potential for a longer-term recovery, citing international momentum, a large buyback program and a portfolio overhaul. The thesis is more relevant to future valuation than to near-term earnings. Prediction: Pepsi Stock Could Surprise Wall Street in 2027
• Neutral Sentiment: PepsiCo’s dividend remains a major attraction for income investors, although reaching $25,000 in annual dividends would require a substantial investment and many shares. How many shares of PepsiCo are needed for $25,000 in yearly dividends
• Neutral Sentiment: Recent coverage compares PepsiCo with Coca-Cola as defensive consumer-staples investments. The comparison highlights PEP’s dividend history and business resilience but does not provide a clear new catalyst. PepsiCo versus Coca-Cola
• Negative Sentiment: Reports point to damage at a Ukrainian production facility and softer North American demand, raising concerns about near-term sales, costs and execution. PepsiCo faces Ukraine damage and soft demand
• Negative Sentiment: PepsiCo is emphasizing fresh-food innovation as consumers move away from processed snacks, signaling a need for investment and potential portfolio-transition risk. The global media-account switch may also create near-term execution costs. PepsiCo puts fresh foods in focus

Insider Buying and Selling at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the firm's stock in a transaction dated 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 in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.12% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on PEP shares. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Jefferies Financial Group decreased their target price on shares of PepsiCo from $162.00 to $152.00 and set a "hold" rating for the company in a research note on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 target price on PepsiCo in a research note on Friday, July 10th. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research note on Friday, July 10th. Finally, Citigroup downgraded PepsiCo from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price 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.

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