Diversified Management Inc. Lowers Stake in PepsiCo, Inc. $PEP

Key Points

• Diversified Management Inc. cut its PepsiCo stake by 74.7% in the second quarter, selling 12,818 shares and retaining 4,336 shares worth approximately $587,000. Institutional investors collectively own 73.07% of PEP.
• PepsiCo reported quarterly earnings of $2.20 per share and revenue of $24.18 billion, modestly exceeding analyst expectations, while revenue increased 6.4% year over year. The company reaffirmed fiscal 2026 EPS guidance of $8.55–$8.71 and declared a quarterly dividend of $1.48 per share, representing a 4.3% yield.
• Analyst sentiment remains cautious: PEP has an average “Hold” rating and a $157.90 consensus price target, as analysts cite weak North American demand, softer volumes and margin pressure despite the company’s strong brands and diversification.

Diversified Management Inc. reduced its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 74.7% in the second quarter, according to its most recent filing with the SEC. The fund owned 4,336 shares of the company's stock after selling 12,818 shares during the period. Diversified Management Inc.'s holdings in PepsiCo were worth $587,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in PEP. Vanguard Group Inc. boosted its holdings in shares of PepsiCo by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after purchasing an additional 1,612,652 shares in the last quarter. State Street Corp raised its holdings in shares of PepsiCo by 1.8% during the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co lifted its position in PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after buying an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC boosted its stake in PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after buying an additional 360,936 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in PepsiCo by 1.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock valued at $4,031,646,000 after acquiring an additional 295,955 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

Insider Buying and Selling at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the stock in a transaction 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 completion of the transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.12% of the company's stock.

PepsiCo Stock Performance

NASDAQ:PEP opened at $138.41 on Wednesday. The firm has a market cap of $188.91 billion, a PE ratio of 18.14, a price-to-earnings-growth ratio of 3.03 and a beta of 0.35. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The business has a 50 day moving average price of $140.33 and a 200-day moving average price of $150.71.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the previous year, the firm earned $0.92 earnings per share. The firm's revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Announces Dividend

The business 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 is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.3%. PepsiCo's payout ratio is currently 77.59%.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is using digital twins, Siemens software and Nvidia’s Omniverse platform to simulate factory expansions before committing capital. The approach could reduce construction risk, improve plant layouts and support productivity gains. PepsiCo Tests Its Factories in Software Before Steel
• Positive Sentiment: PepsiCo’s U.S. foods business is showing signs of volume recovery as consumers respond to affordability initiatives and portfolio changes. Sustained improvement could help stabilize the company’s largest operating pressure point. PepsiCo's Foods Segment: Sustainable Recovery or Temporary Relief?
• Positive Sentiment: PepsiCo continues adapting its portfolio toward lower-sugar, higher-protein and higher-fiber products, which may support longer-term consumer relevance and growth. The company’s equity stake in Celsius also provides a potential strategic opportunity if consolidation occurs in the energy-drink market. Changing Consumption Habits Transform PepsiCo's Portfolio
• Neutral Sentiment: PepsiCo’s latest quarterly results modestly exceeded expectations, with earnings of $2.20 per share and revenue of $24.18 billion. Management’s fiscal 2026 EPS guidance of $8.55–$8.71 provides a valuation framework, but investors remain focused on whether growth can accelerate.
• Negative Sentiment: Analysts continue to cite weak North American demand, softer volumes, rising costs and margin pressure. These concerns help explain why the stock has declined over the past three months despite PepsiCo’s strong brands and global diversification. PepsiCo Stock Drops 9.3% in 3 Months
• Negative Sentiment: A post-earnings comparison with Coca-Cola suggests a widening near-term operating gap, with Coca-Cola benefiting from stronger volume trends and a more favorable outlook. This may limit PepsiCo’s relative appeal among consumer-staples investors. Coca-Cola vs. PepsiCo After Q2 Earnings

Analysts Set New Price Targets

Several research firms have commented on PEP. Wall Street Zen downgraded shares of PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. JPMorgan Chase & Co. cut their price objective on shares of PepsiCo from $178.00 to $170.00 and set an "overweight" rating for the company in a research note on Wednesday, July 1st. Morgan Stanley decreased their target price on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a research report on Friday, July 10th. Evercore set a $150.00 price target on shares of PepsiCo in a research note on Thursday, July 9th. Finally, Wells Fargo & Company cut their price target on shares of PepsiCo from $150.00 to $140.00 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 given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $157.90.

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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