Chesley Taft & Associates LLC Trims Holdings in PepsiCo, Inc. $PEP

Chesley Taft & Associates LLC reduced its stake in PepsiCo, Inc. (NASDAQ:PEP) by 2.9% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 162,052 shares of the company’s stock after selling 4,917 shares during the quarter. PepsiCo accounts for 0.9% of Chesley Taft & Associates LLC’s investment portfolio, making the stock its 29th largest position. Chesley Taft & Associates LLC’s holdings in PepsiCo were worth $21,942,000 as of its most recent filing with the SEC.

Other institutional investors have also recently added to or reduced their stakes in the company. Auto Owners Insurance Co boosted its holdings in PepsiCo by 14,857.8% during the 4th 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 period. Norges Bank purchased a new position in shares of PepsiCo in the fourth quarter valued at approximately $3,018,813,000. Diamant Asset Management Inc. boosted its stake in shares of PepsiCo by 16,146.5% in the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock valued at $556,936,000 after purchasing an additional 3,564,348 shares during the period. Assenagon Asset Management S.A. grew its holdings in shares of PepsiCo by 952.6% in the second quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company’s stock valued at $503,121,000 after purchasing an additional 3,362,794 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in PepsiCo by 120.7% during the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after buying an additional 3,235,726 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Valuation-focused analysis suggests PEP may be trading below its estimated intrinsic value based on discounted cash flow and traditional market multiples. The decline may have already lowered investor expectations, creating potential upside if execution improves. PepsiCo Stock Looks Reasonable As Shares Fell 16% In 3 Years
• Positive Sentiment: PepsiCo’s price-pack strategy is reportedly helping revive U.S. salty-snack volumes. Sustained volume improvement through late 2026 and into 2027 could support revenue growth and earnings momentum. Can PepsiCo’s Price-Pack Strategy Successfully Boost Volumes in 2026?
• Positive Sentiment: Wall Street analysts remain moderately optimistic despite PEP’s underperformance versus the broader market. Its dividend yield above 4% and relatively modest valuation also make the shares appealing to income-oriented investors. Are Wall Street Analysts Predicting PepsiCo Stock Will Climb or Sink?
• Neutral Sentiment: PepsiCo is launching its Alvalle gazpacho brand in the United States, adding another product opportunity, although the near-term financial impact is likely limited. PepsiCo Launching Alvalle Gazpacho in U.S.
• Negative Sentiment: Commentary highlights PepsiCo’s weaker domestic sales and its lagging performance relative to Coca-Cola, reinforcing concerns that U.S. consumers may be resisting price increases or shifting spending. PepsiCo Lags Coca-Cola as Domestic Sales Stumble
• Negative Sentiment: PepsiCo’s dividend payout has approached 90% of free cash flow, raising questions about long-term dividend flexibility despite recent earnings acceleration. PepsiCo’s 90% Payout Ratio Looks Unsustainable
• Negative Sentiment: India’s food regulator will not extend the deadline for energy-drink labeling requirements affecting PepsiCo and other beverage makers, potentially increasing compliance costs or limiting marketing flexibility. FSSAI Won’t Ease Energy Drink Label Deadline

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Wall Street Zen downgraded PepsiCo from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. The Goldman Sachs Group raised their price target on PepsiCo from $180.00 to $183.00 and gave the stock a “buy” rating in a research note on Friday, April 17th. Barclays boosted their price objective on PepsiCo from $138.00 to $142.00 and gave the company an “equal weight” rating in a research note on Tuesday, July 21st. Morgan Stanley reduced their price target on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. Finally, 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. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $157.90.

PepsiCo Price Performance

PepsiCo stock opened at $139.02 on Friday. 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 business has a 50 day simple moving average of $140.48 and a 200-day simple moving average of $150.80. PepsiCo, Inc. has a 12 month low of $133.73 and a 12 month high of $171.48. The stock has a market capitalization of $189.75 billion, a PE ratio of 18.22, a price-to-earnings-growth ratio of 3.04 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping 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 analysts’ expectations of $23.95 billion. During the same period in the prior year, the company posted $0.92 earnings per share. The firm’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. Equities analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be paid a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.3%. PepsiCo’s dividend payout ratio is 77.59%.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.12% of the stock is owned by company insiders.

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.