PepsiCo, Inc. $PEP Position Boosted by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates Ltd. increased its PepsiCo stake by 8.2% in the fourth quarter, adding 14,333 shares to bring its total to 188,641 shares valued at about $27.1 million.
• PepsiCo reported better-than-expected Q1 results, with EPS of $1.61 versus the $1.55 consensus and revenue of $19.44 billion versus expectations of $18.89 billion. Revenue rose 8.5% year over year.
• The company raised its quarterly dividend to $1.48 per share, boosting the annualized payout to $5.92 and the yield to about 4.0%. PepsiCo also has a $10 billion share buyback authorization in place.

Pinnacle Associates Ltd. grew its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 8.2% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 188,641 shares of the company's stock after purchasing an additional 14,333 shares during the period. Pinnacle Associates Ltd.'s holdings in PepsiCo were worth $27,074,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of PepsiCo by 1.2% in 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 in the last quarter. State Street Corp boosted its position in shares of PepsiCo by 1.8% in the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after purchasing an additional 1,079,970 shares during the period. Invesco Ltd. boosted its position in shares of PepsiCo by 7.6% in the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock valued at $1,912,476,000 after purchasing an additional 958,701 shares during the period. Legal & General Group Plc boosted its position in shares of PepsiCo by 1.3% in the 3rd quarter. Legal & General Group Plc now owns 8,902,664 shares of the company's stock valued at $1,250,290,000 after purchasing an additional 118,286 shares during the period. Finally, Amundi boosted its position in shares of PepsiCo by 30.0% in the 3rd quarter. Amundi now owns 8,641,588 shares of the company's stock valued at $1,207,230,000 after purchasing an additional 1,995,362 shares during the period. Institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

Shares of PEP stock opened at $149.27 on Thursday. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. PepsiCo, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The stock's 50-day moving average is $155.88 and its two-hundred day moving average is $152.46. The firm has a market cap of $204.02 billion, a P/E ratio of 23.43, a PEG ratio of 2.78 and a beta of 0.38.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The firm had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The company's revenue was up 8.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.48 earnings per share. Analysts predict that PepsiCo, Inc. will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.0%. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. PepsiCo's dividend payout ratio is presently 89.32%.

PepsiCo declared that its board has approved a stock buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 4.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. HSBC increased their price target on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research report on Friday, April 17th. Royal Bank Of Canada cut their price target on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating on the stock in a report on Thursday, April 9th. JPMorgan Chase & Co. boosted their price target on shares of PepsiCo from $172.00 to $178.00 and gave the company an "overweight" rating in a report on Friday, April 17th. TD Cowen boosted their price target on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a report on Friday, February 20th. Finally, Piper Sandler boosted their price target on shares of PepsiCo from $172.00 to $181.00 and gave the company an "overweight" rating in a report on Thursday, March 12th. Eight research analysts have rated the stock with a Buy rating, ten 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 an average target price of $170.37.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Rothschild & Co Redburn reportedly issued a positive forecast for PepsiCo, which can support sentiment around the stock. Rothschild & Co Redburn Issues Positive Forecast for PepsiCo NASDAQ: PEP Stock Price
• Positive Sentiment: PepsiCo is being recognized for using retailer data to improve product launch execution, a sign it may be becoming more efficient at bringing new products to market. How PepsiCo Used Walmart's Data to Rethink Launch Playbook
• Neutral Sentiment: PepsiCo executive Eugene Willemsen discussed meeting Chinese consumers’ demand for more experiential beverage offerings, highlighting ongoing international product strategy. PepsiCo's Eugene Willemsen on meeting Chinese consumers' demand for experiential beverage experience
• Neutral Sentiment: PepsiCo is featured in a sustainability summit speaker lineup, which is more of a corporate profile item than a direct stock catalyst. Major Global Brands Join Sustainability LIVE at London Climate Action Week 2026
• Negative Sentiment: Elliott Investment Management has built a reported $4 billion stake in PepsiCo and is pushing for operational changes, with North American snack and beverage margins in focus. That activist pressure can increase uncertainty around management strategy and signal the market sees room for improvement. Elliott’s US$4b PepsiCo Stake Puts North American Margins In Focus
• Negative Sentiment: Coverage around PepsiCo’s brand makeover and efforts to escape the “cola orbit” suggests the company is still working to reaccelerate growth, which may keep investors focused on execution risk. Pepsico’s brand makeover designed to escape the cola orbit

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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