Compass Wealth Management LLC Makes New Investment in PepsiCo, Inc. $PEP

Key Points

• Compass Wealth Management initiated a PepsiCo position in the second quarter, buying 17,702 shares valued at approximately $2.4 million. Institutional investors and hedge funds collectively own 73.07% of the company.
• PepsiCo shares opened at $142.27, down 1.7%, while analysts maintain a consensus “Hold” rating and a $157.90 average price target after several firms lowered their targets.
• PepsiCo reported quarterly revenue growth of 6.4% and slightly exceeded earnings expectations, while its upcoming $1.48 quarterly dividend implies a 4.2% yield. Investors will next focus on third-quarter results scheduled for October 8.

Compass Wealth Management LLC bought a new stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 17,702 shares of the company's stock, valued at approximately $2,397,000.

A number of other hedge funds also recently bought and sold shares of PEP. Evergreen Advisors LLC acquired a new position in PepsiCo during the 1st quarter worth approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of PepsiCo during the 4th quarter worth $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the fourth quarter worth $28,000. Networth Advisors LLC increased its holdings in PepsiCo by 2,857.1% in the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock valued at $32,000 after buying an additional 200 shares during the last quarter. Finally, Vermillion Wealth Management Inc. raised its stake in PepsiCo by 99.1% in the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock valued at $34,000 after buying an additional 108 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s international business is approaching $40 billion in revenue, with overseas volume growth, market-share gains and investment increasingly supporting the company’s long-term diversification. Is PepsiCo's Growth Story Becoming More Internationally Focused?
• Positive Sentiment: Autonomous-truck startup Gatik raised $200 million shortly after signing a multiyear commercial agreement with PepsiCo. The financing provides some external validation for PepsiCo’s logistics-automation initiative, although the direct earnings impact remains uncertain. Gatik Raises $200M Following PepsiCo Deal
• Neutral Sentiment: PepsiCo will release third-quarter 2026 results on October 8. The report will be an important catalyst for investors assessing demand, pricing, margins and the company’s reaffirmed full-year outlook. PepsiCo Announces Third-Quarter 2026 Results Timing
• Neutral Sentiment: Analysts maintain a consensus “Hold” recommendation, suggesting limited conviction that PepsiCo’s current valuation offers a clear near-term catalyst. PepsiCo Receives Consensus Hold Recommendation
• Negative Sentiment: Comparisons with Coca-Cola point to stronger perceived brand power, margin performance and earnings momentum at Coca-Cola, potentially making PepsiCo appear less attractive within the beverage sector. Pepsi vs. Coke: One Stock Is Starting to Pull Ahead
• Negative Sentiment: Indian regulators reportedly placed PepsiCo among food companies facing scrutiny over advertising and labeling claims. Any enforcement or compliance costs could create reputational and financial risks, though the reports do not indicate a confirmed material penalty. Food Giants on FSSAI's Radar

Insider Activity at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the stock in a transaction dated Monday, July 27th. The shares were 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.12% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Bank of America dropped their price objective on PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a report on Thursday, June 25th. Sanford C. Bernstein set a $134.00 target price on PepsiCo in a research note on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 price target on shares of PepsiCo in a research note on Friday, July 10th. Wells Fargo & Company cut their price objective on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Finally, Morgan Stanley reduced their price objective on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a research report on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $157.90.

PepsiCo Stock Down 1.7%

Shares of NASDAQ PEP opened at $142.27 on Wednesday. The stock has a market cap of $194.18 billion, a PE ratio of 18.65, a price-to-earnings-growth ratio of 3.18 and a beta of 0.35. PepsiCo, Inc. has a 52-week low of $133.73 and a 52-week high of $171.48. The business has a 50-day moving average price of $139.91 and a 200 day moving average price of $149.97. 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 (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating analysts' consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to analysts' expectations of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The firm's revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts forecast that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's dividend payout ratio (DPR) is presently 77.59%.

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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