M1 Capital Management LLC Makes New Investment in PepsiCo, Inc. $PEP

M1 Capital Management LLC bought a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP) in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 6,837 shares of the company’s stock, valued at approximately $926,000.

Other large investors also recently modified their holdings of the company. Evergreen Advisors LLC bought a new stake in shares of PepsiCo during the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in PepsiCo in the fourth quarter worth about $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the fourth quarter valued at approximately $28,000. Atlatl Advisers LLC bought a new position in shares of PepsiCo during the second quarter valued at approximately $31,000. Finally, Imprint Wealth LLC acquired a new stake in shares of PepsiCo during the 3rd quarter worth approximately $31,000. 73.07% of the stock is currently owned by institutional investors.

PepsiCo Trading Up 1.0%

Shares of PEP stock opened at $141.07 on Friday. The firm has a market capitalization of $192.55 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 3.07 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. PepsiCo, Inc. has a 1 year low of $133.73 and a 1 year high of $171.48. The stock has a fifty day moving average of $139.86 and a two-hundred day moving average of $149.51.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. The business had revenue of $24.18 billion for the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company’s revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, research analysts expect that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be paid a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is currently 77.59%.

Analyst Ratings Changes

Several brokerages recently issued reports on PEP. Wells Fargo & Company cut their price target on PepsiCo from $150.00 to $140.00 and set an “equal weight” rating on the stock in a report on Friday, July 10th. UBS Group set a $159.00 target price on PepsiCo in a research report on Thursday, July 9th. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a report on Monday, July 6th. JPMorgan Chase & Co. lowered their price target on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating for the company in a research report on Wednesday, July 1st. Finally, Piper Sandler set a $176.00 price objective on shares of PepsiCo in a report on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $157.90.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds
• Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend
• Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks
• Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500
• Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims
• Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice?

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the business’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 transaction of $404,666.00. Following the sale, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.12% of the stock is owned by corporate insiders.

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.