The Manufacturers Life Insurance Company Acquires 177,468 Shares of PepsiCo, Inc. $PEP

Key Points

• The Manufacturers Life Insurance Company increased its PepsiCo stake by 19% in the second quarter, purchasing 177,468 shares to bring its holdings to 1.11 million shares valued at approximately $150.4 million.
• PepsiCo reported quarterly revenue of $24.18 billion, up 6.4% year over year, and EPS of $2.20, narrowly exceeding analyst expectations. The company also declared a quarterly dividend of $1.48 per share, representing a 4.3% annualized yield.
• PepsiCo is investing in growth through a new $90 million chip facility in India and a focus on automation, cost reduction and marketing. Analysts remain cautious, with the stock carrying a consensus “Hold” rating and an average price target of $157.90.

The Manufacturers Life Insurance Company lifted its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 19.0% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,110,852 shares of the company's stock after purchasing an additional 177,468 shares during the period. The Manufacturers Life Insurance Company owned 0.08% of PepsiCo worth $150,409,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Evergreen Advisors LLC acquired a new position in shares of PepsiCo during the 1st quarter valued at $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in PepsiCo in the fourth quarter valued at $26,000. Montgomery Financial Services LLC bought a new stake in PepsiCo in the second quarter valued at $25,000. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the fourth quarter valued at about $28,000. Finally, Networth Advisors LLC boosted its position in shares of 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 purchasing an additional 200 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Expansion in India: PepsiCo India opened a potato-chip manufacturing facility in Assam backed by approximately ₹778 crore ($90 million) of investment. The plant is expected to support local sourcing, expand production capacity and strengthen PepsiCo’s position in one of its key growth markets. PepsiCo India opens first food factory in Assam
• Positive Sentiment: India growth ambitions: Management reportedly views India as an increasingly important market and is targeting a place among PepsiCo’s 10 largest global markets. This could offer a longer-term growth avenue as the company expands local manufacturing and distribution. PepsiCo bullish on India
• Positive Sentiment: Efficiency and marketing focus: PepsiCo’s growth plan emphasizes automation, cost reduction and increased advertising. Successful execution could help offset input-cost pressures and improve margins, while recent beverage partnerships, product launches and sports marketing may support demand. PepsiCo’s plan to accelerate growth
• Neutral Sentiment: Income appeal: Commentary highlighting PepsiCo’s dividend yield and long record of annual increases may attract value and income investors, although it is opinion-based rather than a new company announcement. PepsiCo’s latest reported quarter showed revenue growth and slightly better-than-expected earnings.
• Neutral Sentiment: Limited near-term catalysts: New seasonal flavors, restaurant distribution partnerships and a Flamin’ Hot food collaboration add brand visibility but are unlikely to materially change near-term financial results. The reported short-interest data showed zero shares and appears unreliable.

PepsiCo Stock Down 0.0%

PEP opened at $136.65 on Friday. PepsiCo, Inc. has a fifty-two week low of $133.73 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company's 50-day moving average is $139.50 and its 200 day moving average is $147.68. The firm has a market capitalization of $186.51 billion, a P/E ratio of 17.91, a PEG ratio of 2.88 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Thursday, July 9th. The company reported $2.20 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 firm had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. During the same quarter last year, the business posted $0.92 EPS. The company's revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Research analysts expect that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors 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 dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's dividend payout ratio (DPR) is presently 77.59%.

Analyst Ratings Changes

PEP has been the subject of a number of research analyst reports. Barclays boosted their target price on PepsiCo from $138.00 to $142.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 21st. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Wells Fargo & Company decreased their price target on shares of PepsiCo from $150.00 to $140.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Piper Sandler set a $176.00 price objective on shares of PepsiCo in a research note on Thursday, July 9th. Finally, Deutsche Bank Aktiengesellschaft set a $155.00 target price on shares of PepsiCo in a report on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $157.90.

Insider Buying and Selling

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the business's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value 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. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.12% of the company's stock.

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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