Commerce Bank Takes $89.02 Million Position in PepsiCo, Inc. $PEP

Key Points

• Commerce Bank acquired 657,437 PepsiCo shares valued at approximately $89.02 million in the second quarter. Institutional investors and hedge funds collectively own 73.07% of PEP.
• PepsiCo posted quarterly EPS of $2.20, narrowly exceeding estimates, while revenue rose 6.4% year over year to $24.18 billion. The company declared a $1.48 quarterly dividend, equal to a 4.2% annualized yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $157.90 versus the stock’s recent price near $141.07. Investors are weighing PepsiCo’s long dividend history against slower growth, North American weakness and regulatory scrutiny.

Commerce Bank acquired a new position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 657,437 shares of the company's stock, valued at approximately $89,017,000.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Auto Owners Insurance Co boosted its position in shares of PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after purchasing an additional 48,923,629 shares during the period. Norges Bank acquired a new stake in PepsiCo during the 4th quarter worth about $3,018,813,000. Diamant Asset Management Inc. lifted its stake in PepsiCo by 16,146.5% during the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company's stock valued at $556,936,000 after buying an additional 3,564,348 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of PepsiCo by 952.6% in the second quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company's stock worth $503,121,000 after buying an additional 3,362,794 shares during the period. Finally, AQR Capital Management LLC increased its position in shares of PepsiCo by 120.7% in the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company's stock worth $830,902,000 after acquiring an additional 3,235,726 shares in the last quarter. 73.07% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.12% of the company's stock.

PepsiCo Stock Performance

PEP stock opened at $141.07 on Friday. The company has a market capitalization of $192.55 billion, a price-to-earnings ratio of 18.49, a P/E/G ratio of 3.07 and a beta of 0.35. The firm has a 50 day moving average of $139.86 and a two-hundred day moving average of $149.51. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a 12 month low of $133.73 and a 12 month high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. The business had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. PepsiCo's quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, equities analysts anticipate that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The business also recently declared 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 of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. PepsiCo's payout ratio is currently 77.59%.

Key PepsiCo News

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?

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on PEP shares. BNP Paribas Exane cut their price target on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a report on Wednesday, July 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research note on Monday, July 6th. Citigroup downgraded shares of PepsiCo from a "buy" rating to a "neutral" rating and cut their target price for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Wells Fargo & Company reduced their target price on PepsiCo from $150.00 to $140.00 and set an "equal weight" rating for the company in a report on Friday, July 10th. Finally, JPMorgan Chase & Co. decreased their target price on PepsiCo from $178.00 to $170.00 and set an "overweight" rating for the company in a research report on Wednesday, July 1st. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $157.90.

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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