CIBC Asset Management Inc Raises Stock Holdings in PepsiCo, Inc. $PEP

Key Points

• CIBC Asset Management increased its PepsiCo stake by 25.7% in the fourth quarter, buying 146,801 additional shares and bringing its total holding to 717,311 shares worth about $102.9 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $1.61 versus the $1.55 estimate and revenue of $19.44 billion, up 8.5% year over year.
• The company boosted its quarterly dividend to $1.48 per share and also has a $10 billion share buyback authorization, reinforcing its appeal as a defensive, income-focused stock despite recent share underperformance.

CIBC Asset Management Inc lifted its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 25.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 717,311 shares of the company's stock after buying an additional 146,801 shares during the quarter. CIBC Asset Management Inc owned approximately 0.05% of PepsiCo worth $102,948,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of PEP. Vanguard Group Inc. boosted its position in PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares during the period. State Street Corp increased its position in shares of PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares during the period. Geode Capital Management LLC raised its stake in shares of PepsiCo by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock valued at $4,814,835,000 after acquiring an additional 360,936 shares in the last quarter. Norges Bank purchased a new stake in shares of PepsiCo in the fourth quarter valued at approximately $3,018,813,000. Finally, Invesco Ltd. increased its holdings in PepsiCo by 7.6% during the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock worth $1,912,476,000 after purchasing an additional 958,701 shares during the period. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is taking steps to keep products affordable without sacrificing innovation, which could help protect volumes as consumers remain budget-conscious. How PepsiCo Is Achieving Affordability
• Positive Sentiment: The company is rolling out new products such as premium energy drink brand Adrenaline Rush and protein popcorn, signaling efforts to drive growth beyond core snacks and beverages. PepsiCo launches premium energy drink brand 'Adrenaline Rush' PepsiCo debuts protein popcorn
• Positive Sentiment: Analysts and media coverage continue to highlight PepsiCo as a long-term dividend grower with strong cash flow, which supports its defensive investment appeal. PepsiCo and P&G are long-term dividend growers Why PepsiCo (PEP) Remains a Top Dividend King Despite Industry Challenges
• Neutral Sentiment: Recent commentary suggests PepsiCo’s brand restaging and turnaround plan are improving the outlook, but investors are still waiting to see whether those efforts translate into sustained organic sales growth. Can Brand Restaging Meaningfully Lift PepsiCo's Organic Sales Outlook?
• Neutral Sentiment: Coverage questioning whether PEP can reach a new all-time high reflects uncertainty around the stock’s near-term momentum after a recent pullback. Will Pepsi Stock Hit a New All Time High in 2026?
• Negative Sentiment: PepsiCo has been underperforming lately, with shares well below recent moving averages, suggesting investors remain cautious about slower growth and consumer spending pressure. Is PepsiCo Stock Underperforming the Dow?

PepsiCo Stock Up 0.3%

Shares of PepsiCo stock opened at $142.00 on Wednesday. The firm's 50 day moving average price is $152.90 and its 200-day moving average price is $152.64. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $171.48. The company has a market cap of $194.08 billion, a P/E ratio of 22.29, a PEG ratio of 2.56 and a beta of 0.35.

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

PepsiCo declared that its Board of Directors has authorized a stock buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 4.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be given a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, June 5th. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is presently 89.32%.

Analysts Set New Price Targets

A number of brokerages have weighed in on PEP. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Wednesday, April 8th. UBS Group decreased their target price on PepsiCo from $190.00 to $186.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Barclays raised their target price on shares of PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a research report on Monday, April 20th. Rothschild & Co Redburn raised their target price on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Finally, Piper Sandler lifted their price target on PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $170.11.

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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