Jennison Associates LLC Increases Stock Position in PepsiCo, Inc. $PEP

Key Points

• Jennison Associates LLC increased its PepsiCo stake by 157% in Q1, buying 323,278 additional shares and bringing its total holding to 529,129 shares worth about $82.2 million.
• PepsiCo recently reported better-than-expected quarterly results, with EPS of $2.20 and revenue of $24.18 billion, while also maintaining full-year guidance and showing 6.4% year-over-year revenue growth.
• The company declared a quarterly dividend of $1.48 per share, equal to an annualized yield of about 4.3%, underscoring its appeal as an income stock even as analysts remain broadly cautious with a consensus Hold rating.

Jennison Associates LLC lifted its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 157.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 529,129 shares of the company's stock after purchasing an additional 323,278 shares during the period. Jennison Associates LLC's holdings in PepsiCo were worth $82,168,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the stock. Brighton Jones LLC boosted its stake in shares of PepsiCo by 12.4% during the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after purchasing an additional 6,574 shares during the last quarter. Caxton Associates LLP acquired a new stake in PepsiCo during the first quarter worth approximately $251,000. Sivia Capital Partners LLC grew its stake in PepsiCo by 138.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock worth $862,000 after acquiring an additional 3,790 shares during the period. Schnieders Capital Management LLC. raised its holdings 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 acquiring an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. lifted its stake in shares of PepsiCo by 45.5% during the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company's stock worth $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.

PepsiCo Stock Performance

Shares of PEP opened at $137.12 on Monday. PepsiCo, Inc. has a twelve month low of $134.65 and a twelve month high of $171.48. The firm has a market capitalization of $187.15 billion, a P/E ratio of 17.97, a price-to-earnings-growth ratio of 3.01 and a beta of 0.36. 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 fifty day simple moving average is $143.53 and its 200 day simple moving average is $151.26.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly 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 company had revenue of $24.18 billion during the quarter, compared to analyst estimates 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 prior year, the firm posted $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities research analysts forecast that PepsiCo, Inc. will post 8.58 earnings per share for the current 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 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's dividend payout ratio is 77.59%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo declared a quarterly dividend of $1.48 per share, a 4% increase from a year ago, which reinforces its appeal as a steady income stock. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: PepsiCo India reported robust first-half growth and said it will set up a new food manufacturing facility in Tamil Nadu, signaling continued international expansion. PepsiCo India sees robust growth in H1
• Positive Sentiment: PepsiCo’s CEO said the company remains cautiously optimistic about the second half, citing resilient demand in the face of weather-related uncertainty. PepsiCo cautiously optimistic on H2 amid robust demand
• Neutral Sentiment: PepsiCo is drawing more investor attention, but the Zacks items are mostly watchlist-style coverage rather than new fundamental news. PepsiCo, Inc. (PEP) is Attracting Investor Attention
• Neutral Sentiment: PepsiCo is pushing sustainable sourcing further, saying 70% of ingredients now come from sustainable sources and targeting 90% by 2030, which supports long-term ESG goals but is unlikely to move the stock near term. PepsiCo (PEP) Pushes Sustainable Sourcing
• Negative Sentiment: Erste Group Bank trimmed PepsiCo’s FY2026 and FY2027 earnings estimates, adding to concern that profit growth may be slower than previously expected. PepsiCo estimate cuts
• Negative Sentiment: Broader commentary that U.S. grocery unit sales are falling suggests a tougher demand backdrop for PepsiCo and other packaged-food companies. U.S. grocery unit sales falling
• Negative Sentiment: Coverage noting that PepsiCo stock is near a one-year low highlights ongoing investor concern about the company’s growth and margin outlook. Why PepsiCo's stock is at a 1-year low

Wall Street Analyst Weigh In

A number of brokerages have recently commented on PEP. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Rothschild & Co Redburn increased their target price on PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. The Goldman Sachs Group raised their price target on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Wells Fargo & Company dropped their price objective on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Finally, Barclays cut their price objective on shares of PepsiCo from $144.00 to $138.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $157.70.

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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