Magnetar Financial LLC Decreases Stock Holdings in PepsiCo, Inc. $PEP

Key Points

• Magnetar Financial LLC reduced its PepsiCo stake by 86.7% in Q3, selling 58,542 shares and retaining 8,968 shares worth about $1.259 million per its latest 13F filing.
• PepsiCo approved a $10 billion buyback (about 4.7% of shares), pays a $1.4225 quarterly dividend (annual $5.69, yield ~3.6%), and posted a slight quarterly EPS beat ($2.26 vs. $2.24) while analysts’ consensus remains a "Hold" with an average $169 price target.

Magnetar Financial LLC reduced its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 86.7% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 8,968 shares of the company's stock after selling 58,542 shares during the quarter. Magnetar Financial LLC's holdings in PepsiCo were worth $1,259,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of the business. Clayton Financial Group LLC bought a new position in shares of PepsiCo during the third quarter valued at approximately $872,000. Avantax Advisory Services Inc. increased its position in PepsiCo by 2.6% during the 2nd quarter. Avantax Advisory Services Inc. now owns 185,961 shares of the company's stock valued at $24,554,000 after purchasing an additional 4,627 shares during the period. Kathmere Capital Management LLC increased its position in PepsiCo by 122.6% during the 3rd quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company's stock valued at $2,860,000 after purchasing an additional 11,217 shares during the period. Invesco Ltd. raised its holdings in PepsiCo by 11.7% in the 2nd quarter. Invesco Ltd. now owns 12,659,046 shares of the company's stock worth $1,671,500,000 after purchasing an additional 1,330,888 shares in the last quarter. Finally, Mediolanum International Funds Ltd boosted its stake in shares of PepsiCo by 19.3% during the 3rd quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock valued at $35,451,000 after purchasing an additional 40,947 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

PEP stock opened at $158.86 on Friday. The stock's 50 day simple moving average is $156.36 and its 200 day simple moving average is $149.59. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The stock has a market capitalization of $217.11 billion, a PE ratio of 26.48, a price-to-earnings-growth ratio of 3.07 and a beta of 0.39.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Monday, February 2nd. The company reported $2.26 EPS for the quarter, topping analysts' consensus estimates of $2.24 by $0.02. The business had revenue of $29.34 billion during the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The company's quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.96 EPS. As a group, research analysts forecast that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo announced that its Board of Directors has approved a share repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be given a $1.4225 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a yield of 3.6%. PepsiCo's payout ratio is 94.83%.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is pushing AI across marketing, supply chain and R&D to drive efficiency and revenue growth — a technology-led productivity story that supports longer-term margin expansion. PepsiCo’s refreshing take on AI to fuel global growth
• Positive Sentiment: Industry sponsorship trends in EMEA (soccer-focused, high-value energy drink deals) create promotional and distribution opportunities for PepsiCo’s beverage brands in Europe — a demand tailwind for on-premise and event marketing. EMEA Non-Alcoholic Beverages Sponsorship in Sports Business Report 2025
• Positive Sentiment: PepsiCo is actively expanding in meat snacks with the "Good Warrior" push and broader pivot into higher-growth savory/snack niches — a diversification move that could boost faster-growing, higher-margin categories over time. PepsiCo to fight for meat snack market share with ‘Good Warrior’
• Positive Sentiment: Several analyst pieces have turned constructive — noting revenue and margin recovery, an upgrade and a valuation case that still looks appealing vs. peers — which supports upside if execution continues. PepsiCo: Headwinds Are Finally Retreating (Rating Upgrade)
• Neutral Sentiment: PepsiCo agreed to buy prebiotic soda Poppi for about $1.95B to accelerate its functional, low‑sugar beverage push and expand into the UK — strategic for younger consumers but raising near-term valuation and integration questions. PepsiCo Poppi Deal Tests Functional Beverage Push And Valuation Gap
• Neutral Sentiment: Options-income trade ideas circulating in the market (sell options against PEP) reflect investor interest in collecting yield from a relatively stable consumer-staples name, but they’re more a derivative/positioning signal than a direct fundamental catalyst. Sell Options On PepsiCo For A 10%+ Yield
• Negative Sentiment: PepsiCo is closing some Frito‑Lay factories in 2026, which may reflect cost cutting and rationalization but also raises near-term execution, labor and supply‑chain disruption concerns that can pressure sentiment. PepsiCo is closing Frito-Lay factories in 2026 (Are more to come?)
• Negative Sentiment: Critical analysis notes that while trends are improving, some core problems — e.g., margin pressure in lower-growth categories and the need to prove sustainable organic growth — remain; that caution is likely weighing on the stock. PepsiCo: Improving, But Core Problems Remain

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on PEP shares. JPMorgan Chase & Co. increased their price target on shares of PepsiCo from $164.00 to $176.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 4th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research report on Friday, January 9th. Morgan Stanley increased their target price on PepsiCo from $165.00 to $180.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. Citigroup raised their target price on PepsiCo from $170.00 to $182.00 and gave the company a "buy" rating in a research note on Wednesday, February 4th. Finally, UBS Group restated a "buy" rating and set a $190.00 price target on shares of PepsiCo in a research report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, PepsiCo presently has a consensus rating of "Hold" and an average price target of $169.00.

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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