Baird Financial Group Inc. Reduces Stake in PepsiCo, Inc. $PEP

Key Points

• Baird Financial Group reduced its PepsiCo stake by 0.9%, selling 9,405 shares and retaining 1,013,808 shares valued at approximately $137.3 million. Institutional investors collectively own 73.07% of the company.
• Analyst sentiment remains cautious, with PepsiCo carrying a consensus “Hold” rating and an average price target of $157.90. The stock opened at $138.45, well below its 52-week high of $171.48.
• PepsiCo reported quarterly earnings and revenue slightly above estimates and announced a $1.48 quarterly dividend, equal to a $5.92 annualized payout and a 4.3% yield.

Baird Financial Group Inc. reduced its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 0.9% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,013,808 shares of the company's stock after selling 9,405 shares during the period. Baird Financial Group Inc. owned about 0.07% of PepsiCo worth $137,270,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. National Pension Service grew its stake in PepsiCo by 2.5% in the 4th quarter. National Pension Service now owns 3,143,939 shares of the company's stock valued at $451,218,000 after acquiring an additional 77,051 shares during the period. Allstate Corp lifted its holdings in 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 purchasing an additional 54,405 shares in the last quarter. First Nebraska Trust Co acquired a new stake in shares of PepsiCo in the first quarter valued at about $10,782,000. Knights of Columbus Asset Advisors LLC lifted its stake in PepsiCo by 90.0% in the 4th quarter. Knights of Columbus Asset Advisors LLC now owns 94,652 shares of the company's stock valued at $13,584,000 after buying an additional 44,824 shares in the last quarter. Finally, IFM Investors Pty Ltd boosted its holdings in PepsiCo by 4.8% in the 1st quarter. IFM Investors Pty Ltd now owns 273,135 shares of the company's stock worth $42,415,000 after buying an additional 12,472 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of PepsiCo 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 transaction, the executive vice president 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 document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.12% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. TD Cowen restated a "hold" rating on shares of PepsiCo in a research report on Friday, August 28th. Deutsche Bank Aktiengesellschaft set a $155.00 price target on shares of PepsiCo in a research note on Friday, July 10th. Barclays boosted their price target on shares of PepsiCo from $138.00 to $142.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 21st. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research note on Friday, July 10th. Finally, Bank of America reduced their price objective on PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a research report on Thursday, June 25th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $157.90.

PepsiCo Trading Up 0.6%

Shares of PEP stock opened at $138.45 on Wednesday. PepsiCo, Inc. has a 1-year low of $133.73 and a 1-year high of $171.48. The firm has a market cap of $188.97 billion, a PE ratio of 18.15, a price-to-earnings-growth ratio of 2.90 and a beta of 0.35. The company has a 50-day moving average of $139.74 and a two-hundred day moving average of $148.07. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74.

PepsiCo (NASDAQ:PEP - Get Free Report) last released 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. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business's revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current 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 given a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's payout ratio is currently 77.59%.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s global convenient-foods organic volume reportedly rose 3% in the second quarter, supported by international demand, product innovation and affordability. The momentum suggests its snack portfolio may be stabilizing after recent pressure. PepsiCo's Snack Portfolio: What's Driving Volume Gains?
• Positive Sentiment: PepsiCo is pursuing growth in a large fresh-food market as GLP-1 medications and health-conscious consumers increase demand for protein, fiber and less-processed products. Diversifying beyond traditional salty snacks could help offset weaker demand in some legacy categories. GLP-1 Drugs Are Pushing PepsiCo Into a New $271 Billion Market
• Positive Sentiment: Several opinion pieces characterize PepsiCo as an attractive or undervalued dividend investment. Its defensive consumer-staples business and income profile may appeal to investors seeking reliable cash returns, particularly after the stock’s recent weakness. PepsiCo: An Undervalued Dividend Machine Worth A Second Look
• Neutral Sentiment: PepsiCo is reformulating Gatorade, including the use of black carrots for its red coloring, as it responds to ingredient and consumer-preference trends. The move highlights ongoing innovation but does not yet establish a material financial impact. Inside PepsiCo’s battle to remake Gatorade
• Negative Sentiment: GLP-1 adoption is also viewed as a risk because users may eat less and reduce consumption of snacks. Articles questioning what is wrong with PepsiCo emphasize its significant underperformance over the past five years, keeping pressure on management to restore growth. What's Wrong With PepsiCo Stock?
• Negative Sentiment: Compared with Coca-Cola, PepsiCo is being scrutinized as the less compelling dividend choice by some investors because the companies have recently moved in opposite directions and Coca-Cola offers a higher yield. That comparison could limit enthusiasm for PEP among income-focused buyers. Coca-Cola vs PepsiCo: What's the Better Dividend Stock to Buy Right Now?

PepsiCo Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

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