Dimensional Fund Advisors LP Boosts Stock Position in PepsiCo, Inc. $PEP

Key Points

• Dimensional Fund Advisors LP increased its PepsiCo stake by 1.4% in the first quarter, adding 110,346 shares and bringing its position to 8.04 million shares worth about $1.25 billion.
• PepsiCo reported better-than-expected quarterly results, with EPS of $2.20 and revenue of $24.18 billion, while also reaffirming FY2026 EPS guidance of 8.55 to 8.71.
• The company recently raised its quarterly dividend by 4% to $1.48 per share, supporting a 4.3% annualized yield, even as analysts remain cautious with a consensus rating of Hold.

Dimensional Fund Advisors LP raised its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 1.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,041,660 shares of the company's stock after buying an additional 110,346 shares during the period. Dimensional Fund Advisors LP owned about 0.59% of PepsiCo worth $1,248,853,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Evergreen Advisors LLC acquired a new position in PepsiCo in the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo during the fourth quarter worth approximately $26,000. Swiss RE Ltd. purchased a new stake in shares of PepsiCo during the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV acquired a new position in shares of PepsiCo in the 4th quarter valued at $29,000. Finally, Imprint Wealth LLC purchased a new position in shares of PepsiCo in the 3rd quarter valued at $31,000. 73.07% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo declared a quarterly dividend of $1.48 per share, a 4% increase from a year ago, which reinforces its appeal as a steady income stock. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: PepsiCo India reported robust first-half growth and said it will set up a new food manufacturing facility in Tamil Nadu, signaling continued international expansion. PepsiCo India sees robust growth in H1
• Positive Sentiment: PepsiCo’s CEO said the company remains cautiously optimistic about the second half, citing resilient demand in the face of weather-related uncertainty. PepsiCo cautiously optimistic on H2 amid robust demand
• Neutral Sentiment: PepsiCo is drawing more investor attention, but the Zacks items are mostly watchlist-style coverage rather than new fundamental news. PepsiCo, Inc. (PEP) is Attracting Investor Attention
• Neutral Sentiment: PepsiCo is pushing sustainable sourcing further, saying 70% of ingredients now come from sustainable sources and targeting 90% by 2030, which supports long-term ESG goals but is unlikely to move the stock near term. PepsiCo (PEP) Pushes Sustainable Sourcing
• Negative Sentiment: Erste Group Bank trimmed PepsiCo’s FY2026 and FY2027 earnings estimates, adding to concern that profit growth may be slower than previously expected. PepsiCo estimate cuts
• Negative Sentiment: Broader commentary that U.S. grocery unit sales are falling suggests a tougher demand backdrop for PepsiCo and other packaged-food companies. U.S. grocery unit sales falling
• Negative Sentiment: Coverage noting that PepsiCo stock is near a one-year low highlights ongoing investor concern about the company’s growth and margin outlook. Why PepsiCo's stock is at a 1-year low

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $137.12 on Monday. PepsiCo, Inc. has a one year low of $134.65 and a one year high of $171.48. The stock has a market capitalization of $187.15 billion, a price-to-earnings ratio of 17.97, a PEG ratio of 3.01 and a beta of 0.36. The company has a 50-day simple moving average of $143.53 and a 200-day simple moving average of $151.26. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results 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 firm had revenue of $24.18 billion for 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 firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts predict that PepsiCo, Inc. will post 8.58 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued 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 4.3%. PepsiCo's payout ratio is presently 77.59%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. reduced their price target on shares of PepsiCo from $178.00 to $170.00 and set an "overweight" rating for the company in a research report on Wednesday, July 1st. The Goldman Sachs Group lifted their target price on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Evercore set a $150.00 target price on PepsiCo in a research report on Thursday, July 9th. Jefferies Financial Group dropped their price target on PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Finally, Morgan Stanley reduced their price objective on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, PepsiCo presently has an average rating of "Hold" and an average target price of $157.70.

PepsiCo 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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