Illinois Municipal Retirement Fund Trims Stock Position in PepsiCo, Inc. $PEP

Key Points

• Illinois Municipal Retirement Fund reduced its PepsiCo stake by 18.3% in the first quarter, selling 38,627 shares and leaving it with 172,456 shares valued at about $26.8 million.
• PepsiCo continues to face mixed analyst and market sentiment: RBC trimmed its price target to $161 while several other firms also lowered targets, and the stock currently carries an overall “Hold” rating with an average target of $157.70.
• Operational results and shareholder returns remain a bright spot, as PepsiCo beat quarterly EPS and revenue expectations, raised its dividend to $1.48 per share, and maintained full-year guidance despite higher input and logistics costs.

Illinois Municipal Retirement Fund cut its holdings in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 18.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 172,456 shares of the company's stock after selling 38,627 shares during the quarter. Illinois Municipal Retirement Fund's holdings in PepsiCo were worth $26,781,000 at the end of the most recent quarter.

Several other institutional investors have also recently modified their holdings of PEP. Brighton Jones LLC raised its holdings in shares of PepsiCo by 12.4% in 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 acquired a new stake in shares of PepsiCo during the first quarter valued at $251,000. Sivia Capital Partners LLC increased its position 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 in the last quarter. Schnieders Capital Management LLC. raised its stake in PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after purchasing an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. lifted its holdings in PepsiCo by 45.5% in the 2nd 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 in the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s CEO said the company is maintaining its full-year guidance even as higher gas prices raise input and logistics costs, suggesting management still sees the business on track. PepsiCo CEO maintains full-year guidance amid higher gas prices
• Positive Sentiment: Some coverage continues to highlight PepsiCo as a quality dividend stock, which can support investor interest in the name during periods of market volatility. Wall Street Is Sleeping on These 5 Quality Dividend Stocks: Grab Them Now Before It’s Too Late
• Neutral Sentiment: RBC Capital kept a Sector Perform rating but trimmed its price target to $161 from $163 after calling the latest quarter mixed, signaling a cautious but not outright bearish stance. RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)
• Neutral Sentiment: Articles on PepsiCo’s digital-twin efforts and local resilience point to operational improvements and supply-chain flexibility, but these themes are longer-term and less likely to move the stock immediately. Inside PepsiCo’s digital twin revolution PepsiCo doubles down on local resilience
• Neutral Sentiment: Commentary from Jim Cramer and other market-watch pieces suggests PepsiCo can do better, but these are opinion-driven and do not add a clear new catalyst. Jim Cramer Believes PepsiCo, Inc. (PEP) Can Do Better
• Negative Sentiment: Several reports say PepsiCo’s turnaround is stalling as consumers rethink snacking, with analysts pushing back on the company’s growth narrative and questioning its North American strategy. PepsiCo's turnaround stutters as Americans rethink snacking Where Analysts Pushed Back On PEP Stock's Latest Earnings Call
• Negative Sentiment: Broader commentary on consumer staples warns that food company dividends may be at risk, reinforcing concerns about a tougher operating environment for PepsiCo and similar names. Conagra and 6 More Food Stock Dividends That Are at Risk

Analyst Ratings Changes

PEP has been the subject of a number of recent research reports. Bank of America lowered their price target on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a report on Thursday, June 25th. Jefferies Financial Group reduced their price objective 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. JPMorgan Chase & Co. lowered their target price 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. The Goldman Sachs Group boosted their price target on PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a report on Friday, April 17th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a research note on Monday, July 6th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $157.70.

PepsiCo Stock Performance

Shares of PEP stock opened at $135.40 on Thursday. 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 firm has a market capitalization of $184.81 billion, a price-to-earnings ratio of 17.75, a price-to-earnings-growth ratio of 2.97 and a beta of 0.36. PepsiCo, Inc. has a one year low of $133.75 and a one year high of $171.48. The company has a 50 day moving average price of $144.21 and a 200 day moving average price of $151.34.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to analysts' expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business's quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts anticipate that PepsiCo, Inc. will post 8.58 EPS for the current year.

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a dividend of $1.48 per share. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a yield of 4.4%. The ex-dividend date was Friday, June 5th. PepsiCo's payout ratio is currently 77.59%.

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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