Focused Investors LLC Sells 28,000 Shares of PepsiCo, Inc. $PEP

Key Points

• Focused Investors LLC trimmed its PepsiCo position by 2.5% in the first quarter, selling 28,000 shares and leaving it with 1,072,750 shares worth about $166.6 million. PepsiCo remains the fund’s 8th-largest holding, representing roughly 5.4% of its portfolio.
• PepsiCo’s latest quarterly results topped expectations, with $1.61 EPS versus the $1.55 consensus and revenue of $19.44 billion, up 8.5% year over year. Analysts now expect the company to earn 8.63 EPS for the current year.
• The company also raised its quarterly dividend to $1.48 per share, implying a 4.2% yield and $5.92 annualized payout. Meanwhile, analyst sentiment is mixed, with a consensus rating of Hold and a target price of $167.10.

Focused Investors LLC reduced its stake in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.5% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,072,750 shares of the company's stock after selling 28,000 shares during the period. PepsiCo accounts for approximately 5.4% of Focused Investors LLC's holdings, making the stock its 8th largest holding. Focused Investors LLC owned about 0.08% of PepsiCo worth $166,587,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in PEP. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of PepsiCo during the 4th quarter worth about $26,000. Swiss RE Ltd. acquired a new stake in shares of PepsiCo in the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in shares of PepsiCo in the 4th quarter valued at approximately $29,000. Imprint Wealth LLC bought a new position in PepsiCo during the 3rd quarter worth approximately $31,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new position in PepsiCo during the fourth quarter valued at approximately $33,000. Institutional investors own 73.07% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. JPMorgan Chase & Co. boosted their price target on shares of PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. Wells Fargo & Company dropped their price objective on PepsiCo from $160.00 to $150.00 and set an "equal weight" rating on the stock in a research note on Friday, June 5th. HSBC boosted their target price on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Royal Bank Of Canada lowered their price target on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a report on Thursday, April 9th. Finally, BNP Paribas Exane raised their price target on PepsiCo from $191.00 to $195.00 and gave the stock an "outperform" rating in a research report on Friday, April 17th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $167.10.

PepsiCo Stock Performance

Shares of PEP stock opened at $142.02 on Monday. The company has a fifty day moving average price of $149.90 and a two-hundred day moving average price of $152.26. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The stock has a market cap of $194.11 billion, a P/E ratio of 22.30, a P/E/G ratio of 2.83 and a beta of 0.35. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The company had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. During the same period in the previous year, the company posted $1.48 EPS. The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. As a group, equities analysts predict that PepsiCo, Inc. will post 8.63 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be paid a $1.48 dividend. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio is currently 92.94%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s management is being spotlighted for using AI and digital tools to improve operations, strengthen food-system resilience, and support a broader global transformation strategy, which could bolster long-term efficiency and growth. Building a Lighthouse Company: Athina Kanioura on Leading PepsiCo’s Global Transformation
• Positive Sentiment: PepsiCo is also being discussed as a beneficiary of AI adoption across food and beverage companies, which may support productivity and growth initiatives over time. PepsiCo, Danone & Nestlé: how AI is powering F&B growth
• Positive Sentiment: A new Doritos Loaded commercial featuring Gordon Ramsay and Formula 1 driver George Russell underscores PepsiCo’s willingness to spend on high-profile marketing to support snack brand visibility and demand. PepsiCo: Doritos Loaded Unveils High-Octane Commercial Starring Chef Gordon Ramsay And Mercedes-AMG Petronas F1 Driver George Russell
• Neutral Sentiment: Several recent commentary pieces focus on PepsiCo’s valuation and dividend appeal, with one suggesting the shares may trade below fair value while another argues for caution and calls the stock a possible sell, leaving investor sentiment mixed. PepsiCo (PEP) Stock Could Be 46.9% Below Fair Value as Views Split
• Neutral Sentiment: PepsiCo remains a frequent feature in dividend-investing discussions, reinforcing its reputation as a defensive income stock rather than signaling a new catalyst. PepsiCo: Scoop Up This Dividend Growth Legend Now
• Negative Sentiment: Bearish market commentary argues PepsiCo has lagged the broader market since late 2025, which may weigh on sentiment if investors continue to favor faster-growing alternatives. 3 Reasons to Sell PEP and 1 Stock to Buy Instead

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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