Caprock Group LLC Makes New Investment in PepsiCo, Inc. $PEP

Caprock Group LLC purchased a new stake in PepsiCo, Inc. (NASDAQ:PEP) in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 29,624 shares of the company’s stock, valued at approximately $4,404,000.

A number of other institutional investors have also added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of PepsiCo in the second quarter worth about $2,330,594,000. Laurel Wealth Advisors LLC increased its holdings in PepsiCo by 14,420.2% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 3,890,688 shares of the company’s stock worth $513,726,000 after acquiring an additional 3,863,893 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in PepsiCo by 9.7% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company’s stock valued at $3,833,406,000 after purchasing an additional 2,556,163 shares during the period. Franklin Resources Inc. grew its position in shares of PepsiCo by 19.5% during the 2nd quarter. Franklin Resources Inc. now owns 15,577,073 shares of the company’s stock valued at $2,056,797,000 after purchasing an additional 2,541,455 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of PepsiCo by 112.6% in the second quarter. First Trust Advisors LP now owns 4,040,079 shares of the company’s stock worth $533,452,000 after purchasing an additional 2,139,847 shares during the period. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Performance

NASDAQ:PEP opened at $169.15 on Thursday. 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, Inc. has a fifty-two week low of $127.60 and a fifty-two week high of $170.75. The firm has a market cap of $231.17 billion, a PE ratio of 28.19, a price-to-earnings-growth ratio of 3.18 and a beta of 0.40. The business has a 50 day moving average price of $148.78 and a 200-day moving average price of $146.79.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Monday, February 2nd. The company reported $2.26 EPS for the quarter, beating analysts’ consensus estimates of $2.24 by $0.02. The company had revenue of $29.34 billion during the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The firm’s revenue was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $1.96 EPS. Equities research analysts predict that PepsiCo, Inc. will post 8.3 earnings per share for the current year.

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be issued a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Friday, March 6th. PepsiCo’s payout ratio is currently 94.83%.

PepsiCo declared that its board has initiated a stock buyback plan on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 4.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

PEP has been the subject of several recent analyst reports. Barclays boosted their target price on PepsiCo from $148.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Wells Fargo & Company lifted their target price on shares of PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 4th. Morgan Stanley increased their price target on shares of PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 4th. UBS Group reaffirmed a “buy” rating and set a $190.00 price objective on shares of PepsiCo in a report on Wednesday, February 4th. Finally, BNP Paribas Exane set a $191.00 target price on PepsiCo in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PepsiCo currently has a consensus rating of “Hold” and a consensus price target of $167.68.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Dividend/yield interest — Market commentary argues PepsiCo’s dividend yield and steady payout make PEP attractive in uncertain markets, helping drive inflows and supporting the stock’s rally. I Predicted That PepsiCo’s Dividend Yield Peaked…
• Positive Sentiment: Analyst bull case on long-term growth — Zacks highlights PEP as a top long-term growth name based on its portfolio, cash flow and scale, which supports a buy-and-hold thesis. Why PepsiCo (PEP) is a Top Growth Stock for the Long-Term
• Positive Sentiment: Strategy = innovation + margins — A Zacks piece notes PepsiCo is funding innovation and brand building while pursuing productivity and pricing discipline, signaling management is balancing growth and margin recovery. Can PepsiCo Balance Innovation Spending and Margin Expansion?
• Neutral Sentiment: Debt/capital markets activity — PepsiCo announced a €2.5 billion euro-denominated senior notes offering (tranches), which secures funding but raises leverage; impact depends on use (refinancing vs. new spend). PepsiCo Issues €2.5 Billion Euro-Denominated Senior Notes
• Neutral Sentiment: Promotional pricing on snacks — PepsiCo cut prices (brands like Lay’s, Doritos ~15%) to drive volume; could boost share and top-line but may pressure near-term margins. Betcha can eat more than just one…
• Neutral Sentiment: Local operating focus — Management commentary emphasizes “operate locally” advantages (supply/portfolio tailoring), a strategic positive but not an immediate catalyst. PepsiCo exec on the power of operating locally
• Neutral Sentiment: Celsius board change — A PepsiCo-designate resigned from Celsius’ board; noteworthy for the JV/partnership but not material for PepsiCo’s financials. Celsius Holdings Reshapes Board and Leadership with PepsiCo
• Negative Sentiment: Bearish analyst stance persists — Rothschild & Co Redburn raised its target to $130 but kept a “sell” rating, implying meaningful downside from current levels and signaling some analysts still see valuation risk. Rothschild & Co Redburn adjusts price target…
• Negative Sentiment: Sector/peer weakness — Coca‑Cola’s weak organic-sales guidance pressured beverage peers, briefly weighing on PepsiCo’s stock despite PEP’s own solid quarter. Coca-Cola falls after organic-sales guidance disappoints…

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.