Franklin Street Advisors Inc. NC Sells 11,108 Shares of PepsiCo, Inc. $PEP

Key Points

• Franklin Street Advisors reduced its PepsiCo stake by 7%, selling 11,108 shares in the second quarter and retaining 148,174 shares valued at approximately $20.1 million. Institutional investors collectively own 73.07% of PEP.
• PepsiCo exceeded quarterly expectations with $2.20 in adjusted EPS and $24.18 billion in revenue, while revenue increased 6.4% year over year. The company reaffirmed fiscal 2026 EPS guidance of $8.55–$8.71.
• PEP offers a quarterly dividend of $1.48 per share, or a 4.3% annualized yield, but faces concerns over weaker domestic sales and a high dividend payout ratio. Analysts maintain a consensus “Hold” rating with an average price target of $157.90.

Franklin Street Advisors Inc. NC lowered its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 7.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 148,174 shares of the company's stock after selling 11,108 shares during the period. Franklin Street Advisors Inc. NC's holdings in PepsiCo were worth $20,063,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the company. Auto Owners Insurance Co raised its stake in shares of PepsiCo by 14,857.8% in the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after buying an additional 48,923,629 shares during the period. Norges Bank bought a new position in shares of PepsiCo during the 4th quarter worth $3,018,813,000. Diamant Asset Management Inc. increased its holdings in PepsiCo by 16,146.5% in the 1st quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company's stock worth $556,936,000 after acquiring an additional 3,564,348 shares during the last quarter. Assenagon Asset Management S.A. increased its holdings in PepsiCo by 952.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company's stock worth $503,121,000 after acquiring an additional 3,362,794 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in PepsiCo by 120.7% in the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company's stock valued at $830,902,000 after acquiring an additional 3,235,726 shares during the period. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Valuation-focused analysis suggests PEP may be trading below its estimated intrinsic value based on discounted cash flow and traditional market multiples. The decline may have already lowered investor expectations, creating potential upside if execution improves. PepsiCo Stock Looks Reasonable As Shares Fell 16% In 3 Years
• Positive Sentiment: PepsiCo’s price-pack strategy is reportedly helping revive U.S. salty-snack volumes. Sustained volume improvement through late 2026 and into 2027 could support revenue growth and earnings momentum. Can PepsiCo's Price-Pack Strategy Successfully Boost Volumes in 2026?
• Positive Sentiment: Wall Street analysts remain moderately optimistic despite PEP’s underperformance versus the broader market. Its dividend yield above 4% and relatively modest valuation also make the shares appealing to income-oriented investors. Are Wall Street Analysts Predicting PepsiCo Stock Will Climb or Sink?
• Neutral Sentiment: PepsiCo is launching its Alvalle gazpacho brand in the United States, adding another product opportunity, although the near-term financial impact is likely limited. PepsiCo Launching Alvalle Gazpacho in U.S.
• Negative Sentiment: Commentary highlights PepsiCo’s weaker domestic sales and its lagging performance relative to Coca-Cola, reinforcing concerns that U.S. consumers may be resisting price increases or shifting spending. PepsiCo Lags Coca-Cola as Domestic Sales Stumble
• Negative Sentiment: PepsiCo’s dividend payout has approached 90% of free cash flow, raising questions about long-term dividend flexibility despite recent earnings acceleration. PepsiCo’s 90% Payout Ratio Looks Unsustainable
• Negative Sentiment: India’s food regulator will not extend the deadline for energy-drink labeling requirements affecting PepsiCo and other beverage makers, potentially increasing compliance costs or limiting marketing flexibility. FSSAI Won't Ease Energy Drink Label Deadline

PepsiCo Stock Performance

Shares of PEP stock opened at $139.02 on Monday. The company has a market capitalization of $189.75 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 3.05 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's fifty day moving average is $140.48 and its 200 day moving average is $150.83. 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 posted 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. The business 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 was up 6.4% on a year-over-year basis. During the same period 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. On average, equities research analysts anticipate that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on PEP shares. Rothschild & Co Redburn increased their target price on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Jefferies Financial Group dropped their price target on shares of PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. HSBC lifted their price objective on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Finally, Royal Bank Of Canada lowered their target price on shares of PepsiCo from $163.00 to $161.00 and set a "sector perform" rating on the stock in a report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $157.90.

Insider Buying and Selling at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the firm's stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares of the company's stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.12% of the company's stock.

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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