Northwestern Mutual Wealth Management Co. Trims Stake in PepsiCo, Inc. $PEP

Key Points

• Northwestern Mutual Wealth Management cut its PepsiCo stake by 4.9% in the fourth quarter, selling 11,435 shares and ending with 223,334 shares worth about $32.1 million.
• Institutional ownership in PepsiCo remains high, with hedge funds and other investors holding 73.07% of the company. Several large firms, including Vanguard, State Street, and Geode Capital, also increased their positions.
• PepsiCo recently raised its quarterly dividend by 4% to $1.48 per share and reported stronger-than-expected quarterly results, while analysts remain mixed overall with a consensus rating of Hold and an average price target of $170.11.

Northwestern Mutual Wealth Management Co. lowered its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 4.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 223,334 shares of the company's stock after selling 11,435 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in PepsiCo were worth $32,053,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of PepsiCo by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares during the period. State Street Corp grew its holdings in PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after purchasing an additional 1,079,970 shares during the period. Geode Capital Management LLC grew its holdings in PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after purchasing an additional 360,936 shares during the period. Invesco Ltd. grew its holdings in PepsiCo by 7.6% in the third quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock worth $1,912,476,000 after purchasing an additional 958,701 shares during the period. Finally, Legal & General Group Plc grew its holdings in PepsiCo by 1.2% in the fourth quarter. Legal & General Group Plc now owns 9,005,569 shares of the company's stock worth $1,292,479,000 after purchasing an additional 102,905 shares during the period. Hedge funds and other institutional investors own 73.07% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on PEP. Piper Sandler upped their price objective on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a report on Thursday, March 12th. Citigroup upped their price objective on shares of PepsiCo from $170.00 to $182.00 and gave the stock a "buy" rating in a report on Wednesday, February 4th. JPMorgan Chase & Co. upped their price objective on shares of PepsiCo from $172.00 to $178.00 and gave the stock an "overweight" rating in a report on Friday, April 17th. HSBC upped their price objective on shares of PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday, April 17th. Finally, Wells Fargo & Company cut their price objective on shares of PepsiCo from $165.00 to $160.00 and set an "equal weight" rating on the stock in a report on Monday, May 18th. Eight research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $170.11.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to appeal to income investors after raising its quarterly dividend by 4% to $1.48 per share, reinforcing its reputation as a reliable dividend payer. Here is Why PepsiCo (PEP) is Among the Best Dividend-Paying Beverage Stocks to Buy Now
• Positive Sentiment: New sustainability and agricultural partnerships, including work with EIT Food and Fertiberia, support PepsiCo’s long-term supply chain resilience and lower-carbon goals. PepsiCo Foundation and EIT Food back young European farmers with new programme
• Positive Sentiment: The company is also being highlighted for brand and product strategy, including packaging and smaller-portion changes aimed at matching shifting consumer preferences and competing more effectively with rivals like Coca-Cola. Pepsi makes big change to counter Coca-Cola
• Neutral Sentiment: Several articles frame PepsiCo as a strong brand and sponsorship player in global beverage markets, which is supportive of the long-term story but not a direct catalyst for the stock right now. APAC Non-Alcoholic Beverages Industry Sport Sponsorship Analysis Report 2025
• Neutral Sentiment: Coverage of PepsiCo’s marketing leadership and “people and planet” branding reinforces the company’s positioning, but it appears more like thought leadership than a near-term earnings driver. How PepsiCo’s CMO Is Building Brands That Perform For People And Planet
• Negative Sentiment: The stock has been sliding alongside a stronger market, suggesting investors remain cautious despite PepsiCo’s defensive profile and dividend support. PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

PepsiCo Stock Performance

Shares of NASDAQ PEP opened at $144.19 on Monday. The firm's 50 day moving average price is $153.13 and its 200-day moving average price is $152.67. The company has a market cap of $197.07 billion, a PE ratio of 22.64, a P/E/G ratio of 2.61 and a beta of 0.35. PepsiCo, Inc. has a 52-week low of $127.60 and a 52-week high of $171.48. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.06. The firm had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business's revenue was up 8.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.48 earnings per share. On average, equities research analysts expect that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, June 5th will be paid a $1.48 dividend. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. The ex-dividend date is Friday, June 5th. PepsiCo's payout ratio is currently 89.32%.

PepsiCo declared that its Board of Directors has authorized a share buyback plan on Tuesday, February 3rd that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 4.7% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

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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