Sterling Investment Management LLC Raises Position in PepsiCo, Inc. $PEP

Key Points

• Sterling Investment Management boosted its PepsiCo stake by 59.9% in Q4 to 33,705 shares (worth about $4.84M), making PEP roughly 2.7% of the firm's portfolio and its 10th-largest holding.
• PepsiCo beat quarterly estimates (EPS $1.61 vs $1.55; revenue $19.44B vs $18.89B, +8.5% y/y), set FY2026 EPS guidance of 8.465–8.628, authorized a $10B buyback (~4.7% of shares), and pays a $1.4225 quarterly dividend (annual $5.69, ~3.7% yield).

Sterling Investment Management LLC lifted its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 59.9% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 33,705 shares of the company's stock after purchasing an additional 12,626 shares during the period. PepsiCo comprises about 2.7% of Sterling Investment Management LLC's investment portfolio, making the stock its 10th biggest holding. Sterling Investment Management LLC's holdings in PepsiCo were worth $4,837,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. JCIC Asset Management Inc. bought a new position in PepsiCo in the third quarter worth about $27,000. MH & Associates Securities Management Corp ADV bought a new position in PepsiCo in the fourth quarter worth about $29,000. Imprint Wealth LLC bought a new position in PepsiCo in the third quarter worth about $31,000. Mowery & Schoenfeld Wealth Management LLC bought a new position in PepsiCo in the fourth quarter worth about $33,000. Finally, Strategic Advocates LLC bought a new position in PepsiCo in the third quarter worth about $33,000. Institutional investors own 73.07% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on PEP shares. Piper Sandler raised their target price on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a report on Thursday, March 12th. Argus raised shares of PepsiCo to a "hold" rating in a report on Tuesday, February 17th. UBS Group cut their target price on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Morgan Stanley raised their price target on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research note on Wednesday, February 4th. Finally, TD Cowen raised their price target on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a research note on Friday, February 20th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $170.26.

PepsiCo Price Performance

NASDAQ PEP opened at $154.59 on Tuesday. The firm has a market capitalization of $211.29 billion, a PE ratio of 24.27, a P/E/G ratio of 2.88 and a beta of 0.38. PepsiCo, Inc. has a 12 month low of $127.60 and a 12 month high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company's 50 day simple moving average is $157.96 and its 200 day simple moving average is $152.43.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Thursday, April 16th. The company reported $1.61 earnings per share for the quarter, topping 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 firm's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period last year, the firm posted $1.48 earnings per share. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. As a group, equities research analysts forecast that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 6th were issued a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date was Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is presently 89.32%.

PepsiCo announced that its Board of Directors has authorized a share buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the company to purchase up to 4.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: UBS reiterated a Buy on PEP and highlighted strong earnings momentum, backing a $186 price target — a bullish signal that supports the stock’s medium-term valuation and could limit downside from short-term noise. UBS Highlights Strong Earnings Momentum for PepsiCo (PEP)
• Positive Sentiment: Management’s productivity and cost-savings initiatives are being emphasized as a key buffer against inflationary pressure — this reduces earnings risk and supports margin resilience if input costs rise. Can Productivity Savings Shield PepsiCo From Inflation Pressures?
• Positive Sentiment: Product innovation and portfolio expansion (Tostitos refrigerated dips, Pure Leaf Mental Focus sparkling teas, MUG/Quaker collaborations) broaden growth levers and help drive incremental revenue in higher-margin formats. Investors view new SKUs and cross-brand bundles as supportive for top-line momentum. PepsiCo Balances Human Rights Scrutiny With Health Focused Product Expansion
• Positive Sentiment: Gatorade’s “Body of Science” multi-year research commitment targets women’s hydration needs — a meaningful brand and R&D investment that can deepen category leadership and support future product commercialization. Gatorade Unveils "Body of Science"
• Neutral Sentiment: Dividend-focused write-ups continue to include PepsiCo as a reliable dividend compounder, which supports long-term investor demand but has limited immediate impact on intraday moves. 10 Years, Zero Regrets: The Dividend Stocks I Keep Buying
• Negative Sentiment: A shareholder proposal seeks more detailed reporting on human-rights policy effectiveness and due diligence; governance scrutiny ahead of the annual meeting can create uncertainty and headline risk that depresses sentiment. PepsiCo Balances Human Rights Scrutiny With Health Focused Product Expansion
• Negative Sentiment: One roundup included PEP among “unpopular” names receiving downbeat forecasts, which can prompt tactical selling by momentum or quant funds and add selling pressure even if fundamentals remain intact. 3 Unpopular Stocks We Keep Off Our Radar

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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