Welch & Forbes LLC Lowers Stake in PepsiCo, Inc. $PEP

Key Points

• Welch & Forbes LLC cut its PepsiCo stake by 2.6% in the fourth quarter, selling 11,653 shares and ending with 429,173 shares worth about $61.6 million.
• PepsiCo reported better-than-expected Q1 results, with EPS of $1.61 versus $1.55 expected and revenue of $19.44 billion versus $18.89 billion anticipated. Revenue rose 8.5% year over year, and analysts now expect full-year EPS of $8.63.
• The company also raised its quarterly dividend to $1.48 per share, implying a 4.1% annualized yield, while authorizing a $10 billion share repurchase program. Meanwhile, Wall Street remains mixed, with a consensus rating of Hold and an average price target of $170.11.

Welch & Forbes LLC lowered its stake in shares of PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 2.6% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 429,173 shares of the company's stock after selling 11,653 shares during the quarter. Welch & Forbes LLC's holdings in PepsiCo were worth $61,595,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. MH & Associates Securities Management Corp ADV purchased a new stake in shares of PepsiCo during the 4th quarter valued at $29,000. Imprint Wealth LLC purchased a new stake in shares of PepsiCo during the 3rd quarter valued at $31,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of PepsiCo during the 4th quarter valued at $33,000. Strategic Advocates LLC purchased a new stake in shares of PepsiCo during the 3rd quarter valued at $33,000. Finally, Highline Wealth Partners LLC raised its position in shares of PepsiCo by 56.3% during the 4th quarter. Highline Wealth Partners LLC now owns 250 shares of the company's stock valued at $36,000 after buying an additional 90 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on PEP shares. The Goldman Sachs Group raised their price objective on shares of PepsiCo from $180.00 to $183.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Royal Bank Of Canada lowered their price objective on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 9th. Argus upgraded shares of PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Piper Sandler lifted their target price on shares of PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research report on Thursday, March 12th. Finally, Rothschild & Co Redburn lifted their target price on shares of PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Eight equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $170.11.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $144.19 on Friday. The stock has a market cap of $197.07 billion, a PE ratio of 22.64, a PEG ratio of 2.61 and a beta of 0.38. The company's fifty day moving average is $153.13 and its 200 day moving average is $152.60. PepsiCo, Inc. has a 52 week low of $127.60 and a 52 week high of $171.48. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. The company had revenue of $19.44 billion for 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 was up 8.5% compared to the same quarter last year. During the same quarter last year, the company earned $1.48 EPS. Research analysts anticipate that PepsiCo, Inc. will post 8.63 earnings per share for the current year.

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th will be issued a $1.48 dividend. This is a boost from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a yield of 4.1%. PepsiCo's payout ratio is 89.32%.

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

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to appeal to income investors after raising its quarterly dividend by 4% to $1.48 per share, reinforcing its reputation as a reliable dividend payer. Here is Why PepsiCo (PEP) is Among the Best Dividend-Paying Beverage Stocks to Buy Now
• Positive Sentiment: New sustainability and agricultural partnerships, including work with EIT Food and Fertiberia, support PepsiCo’s long-term supply chain resilience and lower-carbon goals. PepsiCo Foundation and EIT Food back young European farmers with new programme
• Positive Sentiment: The company is also being highlighted for brand and product strategy, including packaging and smaller-portion changes aimed at matching shifting consumer preferences and competing more effectively with rivals like Coca-Cola. Pepsi makes big change to counter Coca-Cola
• Neutral Sentiment: Several articles frame PepsiCo as a strong brand and sponsorship player in global beverage markets, which is supportive of the long-term story but not a direct catalyst for the stock right now. APAC Non-Alcoholic Beverages Industry Sport Sponsorship Analysis Report 2025
• Neutral Sentiment: Coverage of PepsiCo’s marketing leadership and “people and planet” branding reinforces the company’s positioning, but it appears more like thought leadership than a near-term earnings driver. How PepsiCo’s CMO Is Building Brands That Perform For People And Planet
• Negative Sentiment: The stock has been sliding alongside a stronger market, suggesting investors remain cautious despite PepsiCo’s defensive profile and dividend support. PepsiCo (PEP) Stock Slides as Market Rises: Facts to Know Before You Trade

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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