Legacy CG LLC Reduces Stock Holdings in PepsiCo, Inc. $PEP

Key Points

• Legacy CG LLC cut its PepsiCo stake by 81.3% in the second quarter, selling 21,121 shares and retaining 4,854 shares valued at approximately $657,000. Institutional investors collectively own 73.07% of PEP.
• Analyst sentiment is cautious: PepsiCo has an average “Hold” rating and a consensus price target of $157.90, while several firms recently lowered their targets. Shares opened at $140.79, near the lower end of their 52-week range.
• PepsiCo reported quarterly revenue of $24.18 billion and adjusted earnings of $2.20 per share, both slightly above estimates, while revenue grew 6.4% year over year. The company also declared a quarterly dividend of $1.48 per share, representing a 4.2% annualized yield.

Legacy CG LLC lessened its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 81.3% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 4,854 shares of the company's stock after selling 21,121 shares during the quarter. Legacy CG LLC's holdings in PepsiCo were worth $657,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in PEP. Evergreen Advisors LLC purchased a new stake in shares of PepsiCo in the first quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of PepsiCo during the 4th quarter worth approximately $26,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the 4th quarter worth approximately $28,000. Imprint Wealth LLC purchased a new stake in PepsiCo in the 3rd quarter valued at approximately $31,000. Finally, Networth Advisors LLC grew its holdings in PepsiCo by 2,857.1% during the 1st quarter. Networth Advisors LLC now owns 207 shares of the company's stock valued at $32,000 after buying an additional 200 shares during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

PEP has been the subject of a number of analyst reports. Citigroup cut PepsiCo from a "buy" rating to a "neutral" rating and cut their price target for the stock from $170.00 to $145.00 in a report on Friday, July 10th. Bank of America dropped their price objective on PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a research report on Thursday, June 25th. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research note on Friday, July 10th. Wall Street Zen cut shares of PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Finally, Morgan Stanley lowered their price target on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, PepsiCo currently has an average rating of "Hold" and a consensus target price of $157.90.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s 4% dividend increase and 54 consecutive years of dividend growth reinforce its appeal to income-focused investors. With shares trading at a valuation below that of rival Coca-Cola, analysts and financial commentators see potential for the valuation gap to narrow. 54 Straight Years: Why PepsiCo Remains a Dividend Investor’s Anchor
• Positive Sentiment: PepsiCo’s decade-low valuation is attracting attention from investors seeking a potential recovery in a large, established consumer-staples company. The thesis provides support for the stock despite recent pressure on its share price. PepsiCo: A Behemoth Trading At A Decade-Low Valuation
• Positive Sentiment: PepsiCo reported progress toward its pep+ sustainability goals, including efforts involving agriculture, emissions, packaging and healthier product formulations. Its reported increase in recycled content for plastic packaging may strengthen brand reputation and help address environmental concerns, although the near-term earnings impact is likely limited. PepsiCo Reports on Latest ESG Performance Towards pep+ Goals PepsiCo reports 2025 increase in recycled content for plastic packaging
• Neutral Sentiment: Gatorade added three-time Ballon d’Or winner Aitana Bonmatí to its athlete roster ahead of the football season. The partnership could support brand visibility and sports-drink sales, but its financial effect is not quantified. Gatorade Welcomes Aitana Bonmatí to Team Gatorade
• Neutral Sentiment: Hudson Valley Farms plans to acquire a former PepsiCo property. The transaction may streamline PepsiCo’s real-estate holdings, but no purchase price or material earnings impact was provided. Hudson Valley Farms to acquire former PepsiCo property

Insider Activity

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 approximately $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.12% of the company's stock.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $140.79 on Friday. The company has a market cap of $192.16 billion, a P/E ratio of 18.45, a P/E/G ratio of 3.09 and a beta of 0.35. The business has a fifty day simple moving average of $140.20 and a 200-day simple moving average of $150.57. PepsiCo, Inc. has a 52 week low of $133.73 and a 52 week high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping 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 firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the prior year, the business posted $0.92 earnings per share. The firm's revenue for the quarter was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts forecast that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Announces Dividend

The business 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. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Friday, September 4th. PepsiCo's dividend payout ratio is presently 77.59%.

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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