Gamco Investors INC. ET AL Cuts Stake in PepsiCo, Inc. $PEP

Key Points

• Gamco Investors reduced its PepsiCo stake by 16.5% in the first quarter, selling 10,923 shares and retaining 55,266 shares valued at approximately $8.6 million. Institutional investors collectively own 73.07% of PEP.
• PepsiCo reported quarterly revenue of $24.18 billion and EPS of $2.20, slightly exceeding analyst expectations, while revenue rose 6.4% year over year. The company also declared a quarterly dividend of $1.48 per share, representing a 4.3% annualized yield.
• PEP shares opened at $136.64, near their 52-week low, amid mixed sentiment: several analysts lowered ratings or price targets, although increased call-option activity and a planned Quaker Oats facility expansion provided potentially positive signals.

Gamco Investors INC. ET AL decreased its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 16.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 55,266 shares of the company's stock after selling 10,923 shares during the quarter. Gamco Investors INC. ET AL's holdings in PepsiCo were worth $8,582,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of PEP. Evergreen Advisors LLC acquired a new position in PepsiCo in the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of PepsiCo during the 4th quarter worth about $26,000. Swiss RE Ltd. acquired a new stake in shares of PepsiCo during the fourth quarter worth about $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo during the 4th quarter worth $29,000. Finally, Imprint Wealth LLC acquired a new stake in PepsiCo in the third quarter valued at about $31,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investors bought an unusually large number of PepsiCo call options, with call volume running about 70% above average, signaling bullish trading activity and expectations for upside.
• Positive Sentiment: News that Quaker Oats plans a major expansion at PepsiCo’s North Texas facility could be viewed as a long-term growth and capacity positive. PepsiCo's Quaker Oats plans major expansion at its North Texas facility
• Neutral Sentiment: PepsiCo is still trading near the lower end of its 52-week range, which reflects recent weakness, but also leaves room for a rebound if sentiment improves.
• Negative Sentiment: Zacks Research trimmed multiple PepsiCo earnings estimates, including FY2026, FY2027, FY2028 and several quarterly forecasts, which may pressure the stock by reinforcing concerns about earnings momentum.
• Negative Sentiment: Reports that PepsiCo will cease warehouse operations at an Oklahoma production site may raise concerns about restructuring or operational disruption. PepsiCo to cease warehouse operations at Oklahoma production site
• Negative Sentiment: One Seeking Alpha article argued PepsiCo should be downgraded to “Sell,” reflecting continued skepticism about the stock’s near-term return potential. PepsiCo: 'Upgrading' From Strong Sell To Sell, But I Still Expect Frozen Returns

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $136.64 on Monday. The firm has a market cap of $186.50 billion, a PE ratio of 17.91, a PEG ratio of 3.00 and a beta of 0.36. PepsiCo, Inc. has a 1-year low of $133.73 and a 1-year high of $171.48. The company has a fifty day moving average price of $142.11 and a 200 day moving average price of $151.01. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $23.95 billion. During the same quarter last year, the company posted $0.92 EPS. PepsiCo's quarterly revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Research analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The firm also recently announced 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. This represents a $5.92 annualized dividend and a yield of 4.3%. The ex-dividend date is Friday, September 4th. PepsiCo's payout ratio is presently 77.59%.

Analyst Ratings Changes

A number of brokerages recently weighed in on PEP. Citigroup cut PepsiCo from a "buy" rating to a "neutral" rating and reduced their target price for the company from $170.00 to $145.00 in a report on Friday, July 10th. Wall Street Zen cut PepsiCo from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Wells Fargo & Company cut their price objective on PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. 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. Finally, BNP Paribas Exane decreased their price target on PepsiCo from $195.00 to $183.00 and set an "outperform" rating for the company in a research note on Wednesday, July 8th. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $157.90.

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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