PepsiCo, Inc. $PEP Shares Bought by Sumitomo Mitsui DS Asset Management Company Ltd

Key Points

• Sumitomo Mitsui DS Asset Management increased its PepsiCo stake by 7.3% in the second quarter, adding 14,448 shares for a total holding of 211,745 shares valued at approximately $28.67 million. Institutional investors collectively own 73.07% of the company.
• Analyst sentiment remains cautious, with seven Buy ratings, 12 Holds and one Sell; the consensus rating is Hold, with an average price target of $157.90. Recent target cuts included Morgan Stanley to $160 and Citigroup to $145.
• PepsiCo reported quarterly revenue of $24.18 billion and EPS of $2.20, slightly exceeding estimates, while revenue rose 6.4% year over year. The company declared a quarterly dividend of $1.48, equivalent to a 4.2% annualized yield.

Sumitomo Mitsui DS Asset Management Company Ltd increased its position in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 7.3% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 211,745 shares of the company's stock after purchasing an additional 14,448 shares during the quarter. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in PepsiCo were worth $28,670,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently bought and sold shares of PEP. Evergreen Advisors LLC purchased a new stake in shares of PepsiCo in the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of PepsiCo during the 4th quarter worth about $26,000. Swiss RE Ltd. purchased a new stake in shares of PepsiCo in the 4th quarter valued at approximately $28,000. Imprint Wealth LLC purchased a new stake in PepsiCo in the third quarter valued at approximately $31,000. Finally, Networth Advisors LLC increased its stake in PepsiCo by 2,857.1% during the 1st quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after buying an additional 200 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analyst Weigh In

PEP has been the topic of several analyst reports. Morgan Stanley reduced their price objective on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a research note on Friday, July 10th. Piper Sandler set a $176.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Citigroup downgraded PepsiCo from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $170.00 to $145.00 in a research note on Friday, July 10th. Sanford C. Bernstein set a $134.00 price objective on shares of PepsiCo in a research note on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft set a $155.00 price objective on shares of PepsiCo in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $157.90.

Insider Activity

In related news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, the executive vice president owned 74,825 shares of the company's stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 0.12% of the company's stock.

PepsiCo Trading Up 0.1%

Shares of PEP stock opened at $140.79 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 cap of $192.16 billion, a P/E ratio of 18.45, a P/E/G ratio of 3.09 and a beta of 0.35. The business has a fifty day simple moving average of $140.20 and a 200-day simple moving average of $150.57. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly 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 for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the prior year, the firm earned $0.92 earnings per share. The company's revenue for the quarter was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts forecast that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

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

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s 4% dividend increase and 54 consecutive years of dividend growth reinforce its appeal to income-focused investors. With shares trading at a valuation below that of rival Coca-Cola, analysts and financial commentators see potential for the valuation gap to narrow. 54 Straight Years: Why PepsiCo Remains a Dividend Investor’s Anchor
• Positive Sentiment: PepsiCo’s decade-low valuation is attracting attention from investors seeking a potential recovery in a large, established consumer-staples company. The thesis provides support for the stock despite recent pressure on its share price. PepsiCo: A Behemoth Trading At A Decade-Low Valuation
• Positive Sentiment: PepsiCo reported progress toward its pep+ sustainability goals, including efforts involving agriculture, emissions, packaging and healthier product formulations. Its reported increase in recycled content for plastic packaging may strengthen brand reputation and help address environmental concerns, although the near-term earnings impact is likely limited. PepsiCo Reports on Latest ESG Performance Towards pep+ Goals PepsiCo reports 2025 increase in recycled content for plastic packaging
• Neutral Sentiment: Gatorade added three-time Ballon d’Or winner Aitana Bonmatí to its athlete roster ahead of the football season. The partnership could support brand visibility and sports-drink sales, but its financial effect is not quantified. Gatorade Welcomes Aitana Bonmatí to Team Gatorade
• Neutral Sentiment: Hudson Valley Farms plans to acquire a former PepsiCo property. The transaction may streamline PepsiCo’s real-estate holdings, but no purchase price or material earnings impact was provided. Hudson Valley Farms to acquire former PepsiCo property

PepsiCo Company 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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