Deutsche Bank AG Reduces Stock Position in PepsiCo, Inc. $PEP

Key Points

• Deutsche Bank reduced its PepsiCo stake by 5.3% in the second quarter, selling 478,978 shares and retaining 8.53 million shares valued at approximately $1.16 billion. Institutional investors collectively own 73.07% of PepsiCo.
• PepsiCo exceeded quarterly expectations with $2.20 earnings per share and $24.18 billion in revenue, while revenue increased 6.4% year over year. The company declared a quarterly dividend of $1.48 per share, representing a 4.1% annualized yield.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $157.90 versus the stock’s $144.67 opening price. Recent analyst actions included multiple target-price cuts, despite some firms maintaining Buy or Overweight ratings.

Deutsche Bank AG lessened its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 5.3% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 8,533,926 shares of the company's stock after selling 478,978 shares during the period. Deutsche Bank AG owned about 0.63% of PepsiCo worth $1,155,494,000 at the end of the most recent reporting period.

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

PepsiCo Price Performance

PEP opened at $144.67 on Tuesday. The firm has a market cap of $197.46 billion, a PE ratio of 18.96, a P/E/G ratio of 3.15 and a beta of 0.35. The stock has a 50-day moving average price of $139.99 and a 200-day moving average price of $150.13. PepsiCo, Inc. has a 1 year low of $133.73 and a 1 year high of $171.48. 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 (NASDAQ:PEP - Get Free Report) last released 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 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 revenue was up 6.4% compared to the same quarter last year. During the same period last year, the business earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be given a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. PepsiCo's dividend payout ratio (DPR) is 77.59%.

Insiders Place Their Bets

In related news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value of $404,666.00. Following the transaction, the executive vice president directly owned 74,825 shares of the company's stock, 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. 0.12% of the stock is currently owned by insiders.

Analyst Ratings Changes

PEP has been the topic of a number of research reports. Wells Fargo & Company cut their target price on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a research note on Friday, July 10th. Morgan Stanley decreased their price target 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. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a report on Monday, July 6th. JPMorgan Chase & Co. cut their price objective on PepsiCo from $178.00 to $170.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 1st. Finally, Piper Sandler set a $176.00 target price on PepsiCo in a research report on Thursday, July 9th. Seven equities 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. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $157.90.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s international business is approaching $40 billion in annual revenue, supported by overseas volume growth, market-share gains and continued investment. A greater contribution from international markets could diversify growth beyond the mature U.S. business. Is PepsiCo's Growth Story Becoming More Internationally Focused?
• Positive Sentiment: PepsiCo is reportedly considering Iraq as a potential Middle East manufacturing hub. Such an investment could improve regional production and distribution, although the project remains prospective. Will Iraq become PepsiCo’s Next Middle East Manufacturing Hub?
• Positive Sentiment: Several dividend-investing articles continue to present PepsiCo as a long-term income and defensive consumer-staples holding. That supports demand from investors seeking reliable cash distributions, particularly while interest rates remain elevated. 3 Dividend Stocks to Buy Before August Ends and Hold for Life
• Neutral Sentiment: Analysts collectively rate PepsiCo “Hold,” suggesting the stock’s valuation and dependable dividend are balanced against limited near-term growth and execution risks. PepsiCo Receives Consensus Recommendation of Hold
• Negative Sentiment: India’s food-safety regulator issued notices to major food companies, including PepsiCo, over alleged misleading advertising and labeling claims. The developments could bring compliance costs, reputational concerns or product changes. Food Safety Regulator Notices Major Food Companies
• Negative Sentiment: Consumers are shifting toward healthier and lower-sugar beverages, increasing competition from brands such as Olipop. PepsiCo’s acquisition of Poppi gives it exposure to the trend, but the transition could pressure traditional soda demand and require greater innovation spending. How Olipop Is Beating Big Soda at Its Own Game

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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