Sumitomo Life Insurance Co. Takes Position in PepsiCo, Inc. $PEP

Sumitomo Life Insurance Co. bought a new stake in PepsiCo, Inc. (NASDAQ:PEP) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 12,954 shares of the company’s stock, valued at approximately $1,754,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Evergreen Advisors LLC purchased a new position in PepsiCo in the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of PepsiCo in the fourth quarter worth $26,000. Swiss RE Ltd. acquired a new stake in shares of PepsiCo in the 4th quarter valued at about $28,000. Atlatl Advisers LLC acquired a new stake in 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 valued at approximately $31,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares in the company, 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 through the SEC website. Company insiders own 0.12% of the company’s stock.

Analyst Upgrades and Downgrades

PEP has been the topic of a number of recent research reports. UBS Group set a $159.00 price target on shares of PepsiCo in a research report on Thursday, July 9th. Rothschild & Co Redburn increased their price objective on shares of PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Piper Sandler set a $176.00 target price on PepsiCo in a research note on Thursday, July 9th. Citigroup lowered PepsiCo from a “buy” rating to a “neutral” rating and lowered their target price for the company from $170.00 to $145.00 in a report on Friday, July 10th. Finally, Jefferies Financial Group cut their price target on PepsiCo from $162.00 to $152.00 and set a “hold” rating on the stock in a report on Friday, July 10th. Seven research 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’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $157.90.

Key PepsiCo News

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?

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $141.07 on Friday. The firm’s 50 day moving average is $139.86 and its two-hundred day moving average is $149.51. The firm has a market capitalization of $192.55 billion, a P/E ratio of 18.49, a PEG ratio of 3.07 and a beta of 0.35. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a 52 week low of $133.73 and a 52 week high of $171.48.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data 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 return on equity of 54.63% and a net margin of 10.78%.The business had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the previous year, the firm posted $0.92 earnings per share. The business’s revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Analysts anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement

The firm 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 $1.48 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. PepsiCo’s dividend payout ratio is presently 77.59%.

About PepsiCo

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.