Key Points
- PepsiCo EVP David Flavell sold 2,900 shares for approximately $404,666, reducing his holdings by 3.73% to 74,825 shares.
- PepsiCo exceeded quarterly expectations with $2.20 in EPS and $24.18 billion in revenue, while revenue grew 6.4% year over year. The company also declared a quarterly dividend of $1.48 per share, representing a 4.1% annualized yield.
- Despite support from international growth and product innovation, the company faces softer North American demand, margin pressure and elevated debt. Analysts maintain a consensus “Hold” rating with an average price target of $157.90.
PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) EVP David Flavell sold 2,900 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the executive vice president owned 74,825 shares of the company's stock, valued at $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 can be accessed through the SEC website.
PepsiCo Trading Up 0.4%
Shares of PEP opened at $143.50 on Thursday. The firm has a market cap of $195.86 billion, a P/E ratio of 18.81, a price-to-earnings-growth ratio of 3.14 and a beta of 0.36. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. PepsiCo, Inc. has a 1 year low of $133.73 and a 1 year high of $171.48. The company has a 50 day simple moving average of $141.66 and a two-hundred day simple moving average of $151.08.
PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. The firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company's quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities analysts expect that PepsiCo, Inc. will post 8.57 earnings per share for the current fiscal year.
PepsiCo Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be issued a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo's dividend payout ratio is 77.59%.
Hedge Funds Weigh In On PepsiCo
A number of institutional investors and hedge funds have recently modified their holdings of PEP. Vanguard Group Inc. raised its holdings in PepsiCo by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after buying an additional 1,612,652 shares during the period. State Street Corp boosted its stake in PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after buying an additional 1,079,970 shares during the period. Auto Owners Insurance Co increased its position in PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after acquiring an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of PepsiCo by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock valued at $4,814,835,000 after acquiring an additional 360,936 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of PepsiCo by 1.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after acquiring an additional 295,955 shares during 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: Global volume growth, international brands and product innovation are supporting PepsiCo’s results as the company looks to offset softer North American demand. Productivity initiatives and brand investments could also help stabilize profitability. PepsiCo Rides Global Volume Growth as North American Demand Slows
- Positive Sentiment: PepsiCo’s lower valuation and dividend yield above 4% provide potential support for income-focused investors. Its recent quarterly performance also modestly exceeded estimates, with earnings of $2.20 per share and revenue of $24.18 billion. Is PepsiCo Stock Attractive After Q2 Earnings and Margin Pressure
- Neutral Sentiment: PepsiCo appointed Tanvi Swami as marketing director for Pepsi, 7UP and Mirinda. The move may support brand strategy, although no immediate financial impact was provided. PepsiCo appoints Tanvi Swami as Marketing Director
- Neutral Sentiment: An executive sold 2,900 shares worth approximately $405,000, reducing his position by 3.73%. The transaction was disclosed as required in an SEC filing but was relatively small compared with his remaining holdings. SEC insider transaction filing
- Negative Sentiment: Consumer-staples estimates are being pressured as shoppers increasingly resist price increases. Procter & Gamble’s earnings miss and cautious outlook reinforce concerns that PepsiCo may have limited pricing power, particularly in its large North American snack business. Q3 Estimates Increase for Tech and Finance, Fall for Consumer Staples
- Negative Sentiment: Analysts continue to flag margin pressure, elevated debt and weaker estimates. A lawsuit alleging workplace harassment and retaliation also creates potential reputational risk, although the report does not indicate a quantified financial impact. PepsiCo workplace harassment lawsuit report
Wall Street Analysts Forecast Growth
A number of equities analysts recently commented on PEP shares. Rothschild & Co Redburn increased their price target on PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. UBS Group set a $159.00 price objective on PepsiCo in a report on Thursday, July 9th. Barclays increased 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. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Finally, HSBC upped their price target on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $157.90.
View Our Latest Stock Report on PEP
About PepsiCo
(
Get Free Report)
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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