Meiji Yasuda Asset Management Co Ltd. Invests $14.14 Million in PepsiCo, Inc. $PEP

Key Points

• Meiji Yasuda Asset Management purchased 104,454 PepsiCo shares worth approximately $14.14 million, while institutional investors collectively own 73.07% of the stock.
• PepsiCo exceeded quarterly earnings and revenue expectations, reporting $2.20 EPS and $24.18 billion in revenue, up 6.4% year over year. The company declared a quarterly dividend of $1.48 per share, representing a 4.2% annualized yield.
• Analyst sentiment remains cautious, with PepsiCo holding a consensus “Hold” rating and an average price target of $157.90 versus its $141.07 share price. Investors are weighing its strong dividend history against slower growth, North American weakness and regulatory scrutiny over avocado-oil claims.

Meiji Yasuda Asset Management Co Ltd. purchased a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 104,454 shares of the company's stock, valued at approximately $14,143,000.

A number of other hedge funds also recently added to or reduced their stakes in PEP. Brighton Jones LLC increased its holdings in shares of PepsiCo by 12.4% in 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 in the last quarter. Caxton Associates LLP bought a new position in shares of PepsiCo during the first quarter valued at $251,000. Sivia Capital Partners LLC boosted its position in shares of PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock valued at $862,000 after buying an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. increased 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 worth $5,039,000 after buying an additional 3,502 shares in the last quarter. Finally, Sei Investments Co. raised its position in PepsiCo by 45.5% in the 2nd quarter. Sei Investments Co. now owns 536,133 shares of the company's stock worth $70,789,000 after buying an additional 167,707 shares during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Price Performance

NASDAQ PEP opened at $141.07 on Friday. The company has a 50-day moving average price of $139.86 and a 200-day moving average price of $149.51. 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. The firm has a market capitalization of $192.55 billion, a P/E ratio of 18.49, a PEG ratio of 3.10 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter last year, the firm posted $0.92 earnings per share. The firm's 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 anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Announces Dividend

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

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds
• Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend
• Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks
• Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500
• Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims
• Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice?

Analyst Ratings Changes

A number of brokerages have recently issued reports on PEP. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a report on Monday, July 6th. BNP Paribas Exane lowered their price objective on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 8th. UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Citigroup downgraded shares of PepsiCo from a "buy" rating to a "neutral" rating and cut their target price for the stock from $170.00 to $145.00 in a research report on Friday, July 10th. Finally, Barclays boosted their target price on shares of PepsiCo from $138.00 to $142.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 21st. Seven 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. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $157.90.

Insider Activity at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.12% of the stock is owned by company insiders.

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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