QRG Capital Management Inc. Trims Stake in PepsiCo, Inc. $PEP

Key Points

• QRG Capital Management reduced its PepsiCo stake by 4.8% in the second quarter, selling 9,170 shares and retaining 181,140 shares valued at approximately $24.5 million. Institutional investors collectively own 73.07% of the company.
• PepsiCo shares fell 0.8% to $130.18 and remain near their 12-month low of $127.98. Analysts have an overall “Hold” rating with an average price target of $156.80.
• PepsiCo reported quarterly revenue of $24.18 billion and adjusted EPS of $2.20, slightly exceeding estimates, while reaffirming full-year 2026 EPS guidance. The company also declared a quarterly dividend of $1.48 per share, representing a 4.5% annualized yield.

QRG Capital Management Inc. lessened its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 4.8% during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 181,140 shares of the company's stock after selling 9,170 shares during the quarter. QRG Capital Management Inc.'s holdings in PepsiCo were worth $24,526,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. BlackRock Inc. increased its position in PepsiCo by 2.1% during the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock worth $16,015,363,000 after purchasing an additional 2,440,377 shares in the last quarter. State Street Corp lifted its holdings in PepsiCo by 1.7% in the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company's stock valued at $8,179,099,000 after purchasing an additional 987,582 shares in the last quarter. Auto Owners Insurance Co boosted its stake in shares of PepsiCo by 14,857.8% during the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock worth $7,068,777,000 after purchasing an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of PepsiCo by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after buying an additional 360,936 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of PepsiCo by 0.6% during the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock worth $3,305,146,000 after buying an additional 133,325 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusually heavy options activity may signal increased bullish speculation, with traders purchasing 48,807 PEP call options—about 62% above average call volume.
• Positive Sentiment: Analysts and financial commentators increasingly view PepsiCo as a value opportunity after its decline from the 52-week high. Its defensive brands, dividend income and reasonable valuation could attract long-term investors. Prediction: This Out-of-Favor Dividend Stock Could Have Significant Upside
• Positive Sentiment: PepsiCo’s expansion of zero-sugar beverages, supported by product innovation, pricing and broad distribution, offers a potential growth driver as consumer preferences change. Can Zero Sugar Drinks Fuel PepsiCo’s Next Growth Phase?
• Neutral Sentiment: The company reaffirmed its commitment to investment, local talent and partnerships in Saudi Arabia, supporting its long-term international presence. PepsiCo Saudi Arabia Commitment
• Neutral Sentiment: Former PepsiCo CFO Jamie Caulfield was elected to Kontoor Brands’ board, an appointment that does not materially change PepsiCo’s operations or outlook. Kontoor Brands Elects Jamie Caulfield
• Negative Sentiment: PepsiCo’s decision to end manufacturing at a longtime Washington-area plant, along with reported manufacturing layoffs, raises concerns about demand, costs and restructuring. PepsiCo to End Manufacturing at D.C. Area Plant
• Negative Sentiment: The discontinuation of South Africa’s ProNutro product after 64 years highlights portfolio and market-execution pressure. A separate lawsuit alleges misleading “avocado oil” labeling on Siete and Tostitos chips, adding reputational and legal risk. PepsiCo Discontinues ProNutro

PepsiCo Trading Down 0.8%

PepsiCo stock traded down $1.01 during midday trading on Wednesday, reaching $130.18. The stock had a trading volume of 8,172,757 shares, compared to its average volume of 7,949,046. The stock's 50-day simple moving average is $138.35 and its 200 day simple moving average is $145.75. PepsiCo, Inc. has a twelve month low of $127.98 and a twelve month high of $171.48. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The stock has a market capitalization of $177.68 billion, a PE ratio of 17.06, a price-to-earnings-growth ratio of 2.73 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping analysts' consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company's quarterly revenue was up 6.4% compared to the same quarter last year. During the same period last year, the business posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Analysts expect that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's payout ratio is 77.59%.

Insider Transactions at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the stock in a transaction on Monday, July 27th. The shares were 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 owned 74,825 shares of the company's stock, valued at $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.12% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently issued reports on PEP. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on shares of PepsiCo in a research note on Friday, July 10th. Evercore set a $150.00 price target on PepsiCo in a report on Thursday, July 9th. Sanford C. Bernstein set a $134.00 price target on PepsiCo in a research note on Friday, July 10th. Jefferies Financial Group decreased their price objective on PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Finally, UBS Group set a $159.00 target price on PepsiCo in a research note on Thursday, July 9th. Seven analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $156.80.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

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