Strs Ohio Cuts Stock Position in PepsiCo, Inc. $PEP

Key Points

• STRS Ohio trimmed its PepsiCo stake by 1.9% in Q4, selling 12,506 shares and ending the quarter with 640,063 shares worth about $91.86 million.
• Shareholder returns: PepsiCo launched a $10.0 billion repurchase program (up to ~4.7% of shares) and pays an annualized dividend of $5.69, a yield of roughly 3.6%.
• Financials & outlook: PepsiCo beat quarterly estimates with $1.61 EPS and $19.44B revenue, set FY2026 guidance of $8.465–$8.628 EPS (analysts' consensus ~8.63), while newsflow includes sustainability deals but also a damaging product recall in South Africa.

Strs Ohio lessened its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 1.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 640,063 shares of the company's stock after selling 12,506 shares during the quarter. Strs Ohio's holdings in PepsiCo were worth $91,862,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the stock. Sandro Wealth Management LLC purchased a new stake in shares of PepsiCo during the fourth quarter worth approximately $529,000. Cornerstone Planning Group LLC raised its stake in shares of PepsiCo by 71.6% during the fourth quarter. Cornerstone Planning Group LLC now owns 544 shares of the company's stock worth $81,000 after purchasing an additional 227 shares during the last quarter. Composition Wealth LLC raised its stake in shares of PepsiCo by 14.0% during the fourth quarter. Composition Wealth LLC now owns 57,455 shares of the company's stock worth $8,246,000 after purchasing an additional 7,064 shares during the last quarter. Capital Investment Counsel LLC raised its stake in shares of PepsiCo by 0.8% during the fourth quarter. Capital Investment Counsel LLC now owns 34,843 shares of the company's stock worth $5,001,000 after purchasing an additional 291 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new position in PepsiCo in the fourth quarter worth $118,334,000. 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: PepsiCo signed a 10‑year virtual power purchase agreement with Statkraft to cut ~32,000 metric tons of CO2 annually across Europe — supports sustainability targets and may lower long‑term energy costs. PepsiCo inks 10-year renewable energy deal to cut emissions across Europe
• Positive Sentiment: Zacks Research raised multiple near‑ and medium‑term EPS estimates (including FY2027 and FY2028), signaling improved analyst expectations for profitability. PepsiCo (PEP) analyst note (MarketBeat summary)
• Positive Sentiment: PepsiCo is expanding electrification of distribution with a 50 electric delivery truck rollout in Fresno — incremental cost and emissions benefits and supports supply‑chain decarbonization narrative. Fresno PepsiCo rolls out 50 electric delivery trucks, aims to reduce emissions
• Positive Sentiment: Company announced a 2026 growth plan focused on cost cuts and product innovation — potential margin improvement and revenue growth tailwinds if execution holds. PepsiCo sets 2026 growth plan with cost cuts, innovation push
• Neutral Sentiment: Analyst and media pieces comparing Coca‑Cola vs. PepsiCo provide context for relative valuation and may drive short‑term trading but contain no new company‑specific catalysts. Coca-Cola vs. PepsiCo: Which Stock Is the Better Buy?
• Neutral Sentiment: PepsiCo plans to end its bottling/distribution partnership with Royal Unibrew in parts of Northern Europe by 2028 — strategic operational change that will require new local arrangements (potential short‑term costs, long‑term control). PepsiCo Bottling Shift In Northern Europe And What It Means For Valuation
• Negative Sentiment: PepsiCo apologised to South African consumers and pulled its ProNutro formula from shelves after a backlash — immediate reputational damage, potential regulatory scrutiny and lost sales in the market; this appears to be the most direct near‑term negative catalyst. PepsiCo apologises to South Africans and pulls ProNutro from shelves over formula backlash
• Negative Sentiment: PepsiCo is named in a consumer lawsuit alleging ultraprocessed foods can be addictive — legal risk and reputational headlines that could pressure longer‑term consumer perception and marketing costs. Food giants hit with consumer lawsuit calling ultraprocessed ingredients addictive
• Negative Sentiment: Erste Group trimmed FY2026/27 EPS estimates slightly — a small downward analyst revision that marginally reduces near‑term analyst sentiment. Erste Group Bank analyst note (MarketBeat summary)

PepsiCo Stock Down 0.7%

PEP opened at $157.39 on Friday. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The firm has a market cap of $215.11 billion, a P/E ratio of 24.71, a PEG ratio of 2.90 and a beta of 0.38. PepsiCo, Inc. has a 52 week low of $127.60 and a 52 week high of $171.48. The business's fifty day simple moving average is $157.96 and its 200 day simple moving average is $152.40.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.48 earnings per share. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. As a group, equities research analysts anticipate that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo announced that its Board of Directors has initiated a share repurchase program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

PepsiCo Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were paid a $1.4225 dividend. 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 89.32%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on PEP shares. Argus upgraded PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Rothschild & Co Redburn increased their price objective on PepsiCo from $120.00 to $130.00 and gave the stock a "sell" rating in a research report on Tuesday, February 10th. Wells Fargo & Company increased their price objective on PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. Royal Bank Of Canada cut their price objective on PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research report on Thursday, April 9th. Finally, TD Cowen upped their target price on PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a report on Friday, February 20th. Eight equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo has a consensus rating of "Hold" and an average target price of $170.26.

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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