HighTower Advisors LLC Boosts Stake in PepsiCo, Inc. $PEP

Key Points

• HighTower Advisors increased its PepsiCo stake by 1.6% in the second quarter, adding 60,075 shares to hold 3.76 million shares valued at approximately $508.6 million. Institutional investors collectively own 73.07% of PEP.
• PepsiCo reported quarterly revenue of $24.18 billion, up 6.4% year over year, and earnings of $2.20 per share, narrowly beating estimates. The company declared a quarterly dividend of $1.48 per share, equivalent to a 4.3% yield.
• Analysts maintain a broadly cautious view, with the stock carrying a consensus “Hold” rating and an average price target of $157.90 versus its recent price of $137.63. Concerns include softer North American demand and operational risks, though investors cite international growth, buybacks and portfolio changes as potential longer-term catalysts.

HighTower Advisors LLC lifted its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 1.6% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 3,756,348 shares of the company's stock after purchasing an additional 60,075 shares during the quarter. HighTower Advisors LLC owned approximately 0.28% of PepsiCo worth $508,610,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in PEP. Brighton Jones LLC grew its position in shares of PepsiCo by 12.4% during the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP purchased a new stake in PepsiCo in the 1st quarter valued at $251,000. Sivia Capital Partners LLC boosted its stake in PepsiCo by 138.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock worth $862,000 after purchasing an additional 3,790 shares during the period. Schnieders Capital Management LLC. grew its position in PepsiCo by 10.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock worth $5,039,000 after purchasing an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. increased its stake in PepsiCo by 45.5% in the second quarter. Sei Investments Co. now owns 536,133 shares of the company's stock valued at $70,789,000 after purchasing an additional 167,707 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Insider Buying and Selling at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, the executive vice president directly owned 74,825 shares of the company's stock, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.12% of the stock is currently owned by company insiders.

PepsiCo Price Performance

Shares of PEP opened at $137.63 on Monday. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The stock's 50 day moving average is $139.70 and its two-hundred day moving average is $148.43. PepsiCo, Inc. has a twelve month low of $133.73 and a twelve month high of $171.48. The firm has a market capitalization of $187.85 billion, a PE ratio of 18.04, a P/E/G ratio of 2.90 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business had revenue of $24.18 billion during the quarter, compared to analysts' expectations of $23.95 billion. During the same period last year, the firm earned $0.92 EPS. The company'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 anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on PEP shares. Morgan Stanley decreased their target price on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on PepsiCo in a research note on Friday, July 10th. BNP Paribas Exane decreased their price objective on PepsiCo from $195.00 to $183.00 and set an "outperform" rating for the company in a research report on Wednesday, July 8th. TD Cowen reiterated a "hold" rating on shares of PepsiCo in a research note on Friday, August 28th. Finally, Barclays upped their price target on PepsiCo from $138.00 to $142.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $157.90.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo plans to build a Frito-Lay distribution warehouse near California’s Sonoma County airport. The facility could expand regional distribution capacity and support future sales growth. PepsiCo plans Frito-Lay distribution warehouse near Sonoma County airport
• Positive Sentiment: Publicis Groupe won PepsiCo’s global media account from Omnicom. The change may help PepsiCo modernize marketing, improve digital capabilities and respond more effectively to changing consumer preferences. PepsiCo hands global media to Publicis amid transformation at CPG giant
• Positive Sentiment: Analysts and financial commentators see potential for a longer-term recovery, citing international momentum, a large buyback program and a portfolio overhaul. The thesis is more relevant to future valuation than to near-term earnings. Prediction: Pepsi Stock Could Surprise Wall Street in 2027
• Neutral Sentiment: PepsiCo’s dividend remains a major attraction for income investors, although reaching $25,000 in annual dividends would require a substantial investment and many shares. How many shares of PepsiCo are needed for $25,000 in yearly dividends
• Neutral Sentiment: Recent coverage compares PepsiCo with Coca-Cola as defensive consumer-staples investments. The comparison highlights PEP’s dividend history and business resilience but does not provide a clear new catalyst. PepsiCo versus Coca-Cola
• Negative Sentiment: Reports point to damage at a Ukrainian production facility and softer North American demand, raising concerns about near-term sales, costs and execution. PepsiCo faces Ukraine damage and soft demand
• Negative Sentiment: PepsiCo is emphasizing fresh-food innovation as consumers move away from processed snacks, signaling a need for investment and potential portfolio-transition risk. The global media-account switch may also create near-term execution costs. PepsiCo puts fresh foods in focus

PepsiCo Company 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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