Mediolanum International Funds Ltd Increases Stake in PepsiCo, Inc. $PEP

Key Points

• Mediolanum International Funds Ltd increased its PepsiCo stake by 22.4% in the first quarter, buying 46,549 more shares and bringing its total holding to 254,688 shares worth about $39.94 million.
• PepsiCo reported better-than-expected quarterly results, with EPS of $2.20 and revenue of $24.18 billion, while also raising its full-year FY2026 EPS guidance to $8.55-$8.71.
• The company also boosted its quarterly dividend to $1.48 per share, supporting a 4.3% annualized yield, even as Wall Street remains cautious with an overall Hold rating and an average price target of $157.70.

Mediolanum International Funds Ltd raised its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 22.4% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 254,688 shares of the company's stock after purchasing an additional 46,549 shares during the quarter. Mediolanum International Funds Ltd's holdings in PepsiCo were worth $39,940,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Spartan Wealth Advisory Services LLC purchased a new position in shares of PepsiCo in the first quarter worth $2,353,000. WealthTrust Asset Management LLC boosted its position in shares of PepsiCo by 2.4% during the first quarter. WealthTrust Asset Management LLC now owns 6,183 shares of the company's stock valued at $960,000 after buying an additional 144 shares during the last quarter. Ascent Wealth Partners LLC increased its holdings in PepsiCo by 8.1% in the 1st quarter. Ascent Wealth Partners LLC now owns 3,161 shares of the company's stock worth $491,000 after buying an additional 237 shares in the last quarter. Jennison Associates LLC raised its position in PepsiCo by 157.0% in the 1st quarter. Jennison Associates LLC now owns 529,129 shares of the company's stock worth $82,168,000 after buying an additional 323,278 shares during the last quarter. Finally, Aviance Capital Partners LLC raised its position in PepsiCo by 2.4% in the 1st quarter. Aviance Capital Partners LLC now owns 18,352 shares of the company's stock worth $2,850,000 after buying an additional 438 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on PEP. Royal Bank Of Canada dropped their price target on shares of PepsiCo from $163.00 to $161.00 and set a "sector perform" rating on the stock in a report on Friday, July 10th. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Bank of America dropped their target price on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft set a $155.00 target price on shares of PepsiCo in a research note on Friday, July 10th. Finally, Wall Street Zen cut PepsiCo from a "buy" rating to a "hold" rating in a report on Saturday, April 18th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, PepsiCo has an average rating of "Hold" and an average price target of $157.70.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $137.12 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The stock has a market capitalization of $187.15 billion, a PE ratio of 17.97, a price-to-earnings-growth ratio of 3.01 and a beta of 0.36. The firm's 50 day moving average price is $143.53 and its 200-day moving average price is $151.21. PepsiCo, Inc. has a twelve month low of $134.65 and a twelve 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 (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. During the same period in the previous year, the business posted $0.92 earnings per share. The firm's quarterly revenue 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 expect that PepsiCo, Inc. will post 8.58 EPS for the current year.

PepsiCo Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th were given a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's payout ratio is presently 77.59%.

More PepsiCo News

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

PepsiCo 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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