Massachusetts Financial Services Co. MA Lowers Position in PepsiCo, Inc. $PEP

Key Points

• Massachusetts Financial Services reduced its PepsiCo stake by 11.2% in the second quarter, selling 812,872 shares and retaining 6.46 million shares valued at approximately $887.4 million. Institutional investors collectively own 73.07% of PepsiCo.
• PepsiCo reported quarterly revenue of $24.18 billion and adjusted earnings of $2.20 per share, slightly exceeding analyst expectations, while revenue increased 6.4% year over year. Shares recently traded near $140, well below their 52-week high of $171.48.
• The company declared a quarterly dividend of $1.48 per share, equivalent to a 4.2% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $157.90.

Massachusetts Financial Services Co. MA decreased its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 11.2% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 6,463,867 shares of the company's stock after selling 812,872 shares during the period. Massachusetts Financial Services Co. MA owned 0.47% of PepsiCo worth $887,368,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Evergreen Advisors LLC acquired a new stake in shares of PepsiCo during the 1st quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in PepsiCo in the fourth quarter valued at $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the fourth quarter valued at $28,000. Networth Advisors LLC grew its position in PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock valued at $32,000 after acquiring an additional 200 shares during the period. Finally, Vermillion Wealth Management Inc. increased its stake in PepsiCo by 99.1% during the first quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock worth $34,000 after acquiring an additional 108 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

Insider Activity

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value 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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.12% of the stock is currently owned by insiders.

PepsiCo Stock Performance

Shares of PEP stock opened at $140.13 on Wednesday. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company's fifty day moving average price is $140.10 and its two-hundred day moving average price is $150.47. The firm has a market capitalization of $191.26 billion, a P/E ratio of 18.37, a P/E/G ratio of 3.09 and a beta of 0.35. PepsiCo, Inc. has a 12 month low of $133.73 and a 12 month high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share 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 company had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same period last year, the firm earned $0.92 earnings per share. The company's revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be issued a dividend of $1.48 per share. The ex-dividend date is Friday, September 4th. This represents a $5.92 annualized dividend and a yield of 4.2%. PepsiCo's payout ratio is currently 77.59%.

Analyst Upgrades and Downgrades

PEP has been the topic of several research analyst reports. Jefferies Financial Group reduced their price objective on PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research report on Friday, July 10th. Wells Fargo & Company cut their price target on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Barclays boosted their price objective on shares of PepsiCo from $138.00 to $142.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 21st. Finally, BNP Paribas Exane cut their target price on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 8th. Seven investment 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. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $157.90.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s status as a long-standing dividend payer continues to attract income-focused investors. Its yield is described as more than four times that of the S&P 500, providing support while the stock trades well below its 52-week high. Meet the Dividend King Stock That Yields More Than Quadruple the S&P 500
• Positive Sentiment: A reported global review of PepsiCo’s marketing operations could expand the use of artificial intelligence, potentially improving advertising efficiency, consumer targeting and cost control. PepsiCo reportedly launches global AI marketing transformation review
• Positive Sentiment: PepsiCo reported increased recycled content in its plastic packaging, a development that may improve its sustainability profile and help address regulatory and consumer pressure on packaging waste. PepsiCo reports increase in recycled content for plastic packaging
• Neutral Sentiment: Brand refreshes, new products and value offerings are intended to rebuild consumer momentum, but analysts expect any recovery to be gradual because of softer North American demand. PepsiCo's Brand Refresh: Is it Enough to Win Back Consumers?
• Negative Sentiment: Ferrero’s acquisition activity is increasing competitive pressure across packaged foods and snacks, placing PepsiCo’s brands on notice and potentially raising the need for additional investment. Ferrero's M&A moves put General Mills, Post, and PepsiCo on notice
• Negative Sentiment: Reporting that PepsiCo paid $237 million to Russia last year despite previously saying it would leave the country creates reputational, geopolitical and potential regulatory concerns. PepsiCo said it would leave Russia

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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