PepsiCo, Inc. $PEP Stock Holdings Raised by Focused Investors LLC

Key Points

• Focused Investors LLC raised its stake in PepsiCo by 54% in Q4 to 1,100,750 shares (about $158 million), making PepsiCo roughly 5% of the firm's holdings and its 9th largest position while representing ~0.08% of PepsiCo outstanding shares.
• PepsiCo beat Q1 expectations with $19.44B in revenue and $1.61 EPS, citing snack price cuts that revived U.S. volumes, but set modest FY‑2026 guidance that left analysts mixed—consensus rating is "Hold" with a $170.05 price target.
• The board approved a $10 billion share buyback (up to ~4.7% of shares) and the company pays an annualized dividend of $5.69 (≈3.6% yield) with a high payout ratio near 95%.

Focused Investors LLC lifted its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 54.0% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 1,100,750 shares of the company's stock after buying an additional 386,100 shares during the quarter. PepsiCo accounts for approximately 5.0% of Focused Investors LLC's holdings, making the stock its 9th largest holding. Focused Investors LLC owned about 0.08% of PepsiCo worth $157,980,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Captrust Financial Advisors grew its stake in PepsiCo by 3.6% during the 3rd quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock valued at $77,916,000 after purchasing an additional 19,218 shares in the last quarter. Clayton Financial Group LLC acquired a new stake in PepsiCo during the 3rd quarter valued at approximately $872,000. Murphy Middleton Hinkle & Parker Inc. grew its stake in PepsiCo by 622.3% during the 4th quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock valued at $5,110,000 after purchasing an additional 30,674 shares in the last quarter. Kathmere Capital Management LLC grew its stake in PepsiCo by 122.6% during the 3rd quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company's stock valued at $2,860,000 after purchasing an additional 11,217 shares in the last quarter. Finally, Mediolanum International Funds Ltd increased its position in shares of PepsiCo by 19.3% in the 3rd quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock worth $35,451,000 after purchasing an additional 40,947 shares during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat and volume recovery — PepsiCo reported Q1 revenue of $19.44B and EPS of $1.61 (above consensus). Management said recent price cuts on snacks helped revive U.S. food volumes, supporting top-line momentum. PepsiCo tops quarterly revenue estimates as price cuts drive demand
• Positive Sentiment: Broker support rising — Several major banks raised price targets and kept bullish ratings after the quarter (examples: Goldman to $183, BNP Paribas to $195, JPMorgan to $178, Deutsche to $173), giving the stock additional analyst-driven upside. Goldman Sachs adjusts price target on PepsiCo
• Positive Sentiment: Brand and innovation initiatives — Management highlighted a Gatorade overhaul and new product push (including energy and hydration innovations) as part of a broader “hungry and thirsty for growth” strategy that could sustain the recovery. PepsiCo Q1 earnings beat: CEO talks Gatorade overhaul & more
• Neutral Sentiment: Analyst commentary mixed — While many firms raised targets, some analysts struck cautionary notes on margins and consumer trends; expect divergent views to continue driving intraday volatility. What analysts are saying about PepsiCo after its earnings report
• Negative Sentiment: Guidance and revenue outlook under the microscope — FY‑2026 EPS and revenue ranges were viewed as modest versus some consensus math (company-provided EPS range ~8.465–8.628 and revenue guidance slightly below some estimates), which trimmed some upside despite the beat. PepsiCo Analysts Boost Their Forecasts After Upbeat Q1 Earnings
• Negative Sentiment: Reputational/legal hit from Doritos controversy — Coverage notes past controversy cost the company materially; any renewed consumer backlash or litigation headlines could pressure sentiment. PepsiCo Lost Billions Amid a Doritos Controversy

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on PEP shares. Wells Fargo & Company boosted their target price on shares of PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. HSBC increased their target price on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a report on Friday. Wall Street Zen downgraded PepsiCo from a "buy" rating to a "hold" rating in a report on Saturday. Royal Bank Of Canada reduced their target price on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating on the stock in a report on Thursday, April 9th. Finally, Rothschild & Co Redburn increased their target price on PepsiCo from $120.00 to $130.00 and gave the stock a "sell" rating in a report on Tuesday, February 10th. Eight analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $170.05.

PepsiCo Stock Performance

Shares of NASDAQ PEP opened at $157.67 on Monday. The company has a market cap of $215.50 billion, a price-to-earnings ratio of 24.75, a price-to-earnings-growth ratio of 3.04 and a beta of 0.40. PepsiCo, Inc. has a 12-month low of $127.60 and a 12-month high of $171.48. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The stock's 50 day simple moving average is $159.79 and its 200 day simple moving average is $151.71.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Thursday, April 16th. The company reported $1.61 EPS for the quarter, beating the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same period last year, the firm earned $1.48 EPS. The firm's revenue was up 8.5% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. Equities research analysts expect that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo declared that its board has initiated a stock buyback plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 4.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were paid a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend was Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is presently 94.83%.

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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