Martingale Asset Management L P Cuts Stake in PepsiCo, Inc. $PEP

Martingale Asset Management L P lessened its position in PepsiCo, Inc. (NASDAQ:PEP) by 2.7% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 178,316 shares of the company’s stock after selling 5,016 shares during the period. Martingale Asset Management L P’s holdings in PepsiCo were worth $25,043,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Clayton Financial Group LLC purchased a new position in shares of PepsiCo during the 3rd quarter worth approximately $872,000. Avantax Advisory Services Inc. boosted its stake in shares of PepsiCo by 2.6% in the second quarter. Avantax Advisory Services Inc. now owns 185,961 shares of the company’s stock valued at $24,554,000 after buying an additional 4,627 shares in the last quarter. Kathmere Capital Management LLC grew its holdings in PepsiCo by 122.6% during the third quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company’s stock worth $2,860,000 after acquiring an additional 11,217 shares during the period. Invesco Ltd. grew its holdings in PepsiCo by 11.7% during the second quarter. Invesco Ltd. now owns 12,659,046 shares of the company’s stock worth $1,671,500,000 after acquiring an additional 1,330,888 shares during the period. Finally, Mediolanum International Funds Ltd raised its position in PepsiCo by 19.3% in the third quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company’s stock worth $35,451,000 after acquiring an additional 40,947 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Stock Performance

Shares of PEP opened at $158.86 on Friday. PepsiCo, Inc. has a 1 year low of $127.60 and a 1 year high of $171.48. The company’s 50 day simple moving average is $156.36 and its 200 day simple moving average is $149.59. The company has a market capitalization of $217.11 billion, a price-to-earnings ratio of 26.48, a PEG ratio of 3.07 and a beta of 0.39. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.67 and a current ratio of 0.85.

PepsiCo (NASDAQ:PEP) last released its earnings results on Monday, February 2nd. The company reported $2.26 EPS for the quarter, topping the consensus estimate of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The firm had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion. During the same period in the previous year, the company earned $1.96 EPS. PepsiCo’s revenue for the quarter was up 5.6% on a year-over-year basis. On average, sell-side analysts predict that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be paid a $1.4225 dividend. This represents a $5.69 annualized dividend and a yield of 3.6%. The ex-dividend date is Friday, March 6th. PepsiCo’s dividend payout ratio is presently 94.83%.

PepsiCo announced that its board has approved a stock repurchase plan on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to reacquire up to 4.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

PEP has been the topic of several research analyst reports. Evercore boosted their target price on shares of PepsiCo from $152.00 to $165.00 in a research report on Wednesday, February 4th. Barclays raised their price objective on shares of PepsiCo from $148.00 to $160.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Citigroup boosted their price objective on shares of PepsiCo from $170.00 to $182.00 and gave the stock a “buy” rating in a report on Wednesday, February 4th. Royal Bank Of Canada upped their target price on shares of PepsiCo from $156.00 to $165.00 and gave the stock a “sector perform” rating in a research report on Monday, March 2nd. Finally, HSBC lifted their price target on shares of PepsiCo from $152.00 to $175.00 and gave the company a “hold” rating in a research report on Thursday, February 5th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $169.00.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is pushing AI across marketing, supply chain and R&D to drive efficiency and revenue growth — a technology-led productivity story that supports longer-term margin expansion. PepsiCo’s refreshing take on AI to fuel global growth
• Positive Sentiment: Industry sponsorship trends in EMEA (soccer-focused, high-value energy drink deals) create promotional and distribution opportunities for PepsiCo’s beverage brands in Europe — a demand tailwind for on-premise and event marketing. EMEA Non-Alcoholic Beverages Sponsorship in Sports Business Report 2025
• Positive Sentiment: PepsiCo is actively expanding in meat snacks with the “Good Warrior” push and broader pivot into higher-growth savory/snack niches — a diversification move that could boost faster-growing, higher-margin categories over time. PepsiCo to fight for meat snack market share with ‘Good Warrior’
• Positive Sentiment: Several analyst pieces have turned constructive — noting revenue and margin recovery, an upgrade and a valuation case that still looks appealing vs. peers — which supports upside if execution continues. PepsiCo: Headwinds Are Finally Retreating (Rating Upgrade)
• Neutral Sentiment: PepsiCo agreed to buy prebiotic soda Poppi for about $1.95B to accelerate its functional, low?sugar beverage push and expand into the UK — strategic for younger consumers but raising near-term valuation and integration questions. PepsiCo Poppi Deal Tests Functional Beverage Push And Valuation Gap
• Neutral Sentiment: Options-income trade ideas circulating in the market (sell options against PEP) reflect investor interest in collecting yield from a relatively stable consumer-staples name, but they’re more a derivative/positioning signal than a direct fundamental catalyst. Sell Options On PepsiCo For A 10%+ Yield
• Negative Sentiment: PepsiCo is closing some Frito?Lay factories in 2026, which may reflect cost cutting and rationalization but also raises near-term execution, labor and supply?chain disruption concerns that can pressure sentiment. PepsiCo is closing Frito-Lay factories in 2026 (Are more to come?)
• Negative Sentiment: Critical analysis notes that while trends are improving, some core problems — e.g., margin pressure in lower-growth categories and the need to prove sustainable organic growth — remain; that caution is likely weighing on the stock. PepsiCo: Improving, But Core Problems Remain

PepsiCo 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.