Capital Research Global Investors Sells 708,169 Shares of PepsiCo, Inc. $PEP

Key Points

• Capital Research Global Investors reduced its PepsiCo stake by 10.5% in Q3, selling 708,169 shares and now owns 6,048,615 shares (about 0.44% of the company) valued at roughly $849.5 million.
• PepsiCo's board authorized a $10.0 billion share buyback (up to 4.7% of shares) and announced a quarterly dividend of $1.4225 ($5.69 annualized, ~3.5% yield; ex-dividend Mar 6), while the company posted an EPS beat of $2.26 vs. $2.24 and revenue of $29.34 billion (+5.6% YoY).
• Market consensus is a "Hold" with a $168.50 price target; the stock trades near $160.78, has a market cap of about $219.7 billion and a P/E of 26.8.

Capital Research Global Investors lowered its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 10.5% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,048,615 shares of the company's stock after selling 708,169 shares during the quarter. Capital Research Global Investors owned about 0.44% of PepsiCo worth $849,466,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Three Bridge Wealth Advisors LLC grew its stake in PepsiCo by 1.8% in the 3rd quarter. Three Bridge Wealth Advisors LLC now owns 3,870 shares of the company's stock valued at $544,000 after buying an additional 68 shares during the last quarter. Facet Wealth Inc. grew its position in shares of PepsiCo by 3.2% in the third quarter. Facet Wealth Inc. now owns 2,221 shares of the company's stock valued at $312,000 after purchasing an additional 69 shares during the last quarter. Hudock Inc. increased its stake in shares of PepsiCo by 1.0% in the third quarter. Hudock Inc. now owns 7,079 shares of the company's stock worth $994,000 after purchasing an additional 70 shares during the period. Delta Asset Management LLC TN boosted its stake in PepsiCo by 0.6% during the 3rd quarter. Delta Asset Management LLC TN now owns 11,000 shares of the company's stock valued at $1,545,000 after purchasing an additional 70 shares during the period. Finally, Westside Investment Management Inc. grew its holdings in PepsiCo by 2.8% in the 3rd quarter. Westside Investment Management Inc. now owns 2,602 shares of the company's stock valued at $366,000 after buying an additional 70 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo Stock Down 0.5%

Shares of PEP opened at $160.78 on Wednesday. The business's 50 day simple moving average is $155.72 and its 200-day simple moving average is $149.45. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The company has a market capitalization of $219.73 billion, a P/E ratio of 26.80, a PEG ratio of 3.10 and a beta of 0.39. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Monday, February 2nd. The company reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.24 by $0.02. The business had revenue of $29.34 billion during the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. PepsiCo's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.96 earnings per share. As a group, sell-side analysts predict that PepsiCo, Inc. will post 8.3 EPS for the current fiscal year.

PepsiCo announced that its Board of Directors has initiated a share buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be issued a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is presently 94.83%.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Short sellers trimmed positions sharply in February—short interest fell ~29.7% to ~20.84M shares, leaving only ~1.5% of float short and a short‑interest ratio near 3.1 days; reduced short pressure can limit downside volatility.
• Positive Sentiment: Recent quarterly results showed an EPS beat ($2.26 vs $2.24 est.) and revenue above expectations with revenue up ~5.6% year‑over‑year, supporting the company’s 2026 turnaround messaging.
• Positive Sentiment: New product and brand moves continue: PepsiCo launched protein Doritos, expanding into higher‑margin/health‑adjacent snack formats. PepsiCo launches protein Doritos
• Positive Sentiment: Brand extension: PepsiCo opened a Lay’s‑branded restaurant concept in Madrid, a retail/marketing play that can boost brand engagement and provide new direct‑to‑consumer learnings. PepsiCo opens first Lay’s-branded restaurant in Spain
• Neutral Sentiment: Analysts’ fair‑value models moved only slightly (e.g., to ~$170.81), reflecting a mix of confidence in the turnaround but caution—small changes, not a broad re‑rating. How PepsiCo (PEP) Narrative Is Evolving Around 2026 Turnaround Goals And Fair Value
• Neutral Sentiment: Long‑term category trends (healthy/plant‑based foods, oats growth) support product innovation opportunities for PepsiCo but represent multi‑year upside rather than immediate earnings drivers. United States Healthy Foods Analysis Report 2025: A $400+ Billion Market by 2033, Driven by Plant-Based Nutrition, Functional Foods and Rapid Growth of Online Health Food Retail
• Neutral Sentiment: Dividend safety comparisons with Coca‑Cola are being re‑examined by outlets, keeping investors focused on balance‑sheet and cash‑flow metrics rather than changing the near‑term trade. Coke vs Pepsi: Which Dividend Is Actually Safer?
• Negative Sentiment: Competitive pressure: Coca‑Cola has posted a strong run (KO up sharply over the past month), which can shift sector flows and investor preference away from PepsiCo in the near term. Coca-Cola Stock Rises 12.5% in a Month: Buy the Rally or Wait?
• Negative Sentiment: Activist attention on slower‑growing packaged‑food names remains a risk for the sector (calls for cost cuts, portfolio changes) and could increase pressure on PepsiCo’s stock if investor activism intensifies. Activist Investors Target Food Companies as Growth Slows. Lamb Weston Is the Latest.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on PEP shares. UBS Group reiterated a "buy" rating and set a $190.00 price target on shares of PepsiCo in a report on Wednesday, February 4th. Royal Bank Of Canada increased their price target on shares of PepsiCo from $156.00 to $165.00 and gave the company a "sector perform" rating in a report on Monday, March 2nd. Evercore boosted their price objective on shares of PepsiCo from $152.00 to $165.00 in a report on Wednesday, February 4th. Morgan Stanley increased their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research note on Wednesday, February 4th. Finally, Rothschild & Co Redburn boosted their price target on PepsiCo from $120.00 to $130.00 and gave the company a "sell" rating in a research note on Tuesday, February 10th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $168.50.

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.

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