Canada Pension Plan Investment Board Invests $487.56 Million in PepsiCo, Inc. $PEP

Key Points

• Canada Pension Plan Investment Board acquired 3.6 million PepsiCo shares worth approximately $487.6 million, representing about 0.26% of the company. Institutional investors collectively own 73.07% of PepsiCo.
• PepsiCo beat quarterly expectations with $2.20 in EPS and $24.18 billion in revenue, up 6.4% year over year. The company guided to fiscal 2026 EPS of $8.55–$8.71.
• PepsiCo declared a quarterly dividend of $1.48, equivalent to $5.92 annually and a 4.2% yield, while analysts maintain a consensus “Hold” rating with an average price target of $157.90.

Canada Pension Plan Investment Board acquired a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 3,600,875 shares of the company's stock, valued at approximately $487,558,000. Canada Pension Plan Investment Board owned approximately 0.26% of PepsiCo as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in PEP. Evergreen Advisors LLC acquired a new stake in PepsiCo in the first quarter valued at $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of PepsiCo in the 4th quarter valued at about $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the fourth quarter worth about $28,000. Atlatl Advisers LLC acquired a new stake in PepsiCo during the second quarter valued at approximately $31,000. Finally, Osterweis Capital Management Inc. bought a new position in PepsiCo during the 2nd quarter worth approximately $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Performance

Shares of PEP opened at $141.07 on Monday. The company has a 50-day moving average of $139.86 and a two-hundred day moving average of $149.39. The stock has a market cap of $192.55 billion, a price-to-earnings ratio of 18.49, a PEG ratio of 3.10 and a beta of 0.35. 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, Inc. has a one year low of $133.73 and a one year high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its 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 during the quarter, compared to analyst estimates of $23.95 billion. During the same quarter in the prior year, the company earned $0.92 earnings per share. The company's revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities research analysts expect that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Announces Dividend

The business 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. The ex-dividend date is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo's dividend payout ratio is presently 77.59%.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of the business's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, 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 position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.12% of the stock is owned by company insiders.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds
• Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend
• Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks
• Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500
• Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims
• Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice?

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Evercore set a $150.00 price target on PepsiCo in a research report on Thursday, July 9th. Wells Fargo & Company decreased their price target on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating for the company in a report on Friday, July 10th. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a report on Monday, July 6th. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Finally, Morgan Stanley reduced their target price on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target 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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