TLDR
- Morgan Dempsey Capital Management increased its PEP stake by 35.7%, adding 7,311 shares worth roughly $4.3 million.
- PepsiCo beat Q2 estimates with EPS of $2.20 and revenue of $24.18 billion, up 6.4% year over year.
- The quarterly dividend was raised to $1.48 per share, a 4% increase, supporting a 4.3% annualized yield.
- PEP opened at $137.12, near its one-year low of $134.65, with a consensus analyst rating of “Hold.”
- FY2026 EPS guidance is set at $8.55–$8.71, while some analysts have trimmed their estimates.
PepsiCo (PEP) opened at $137.12 on Friday, sitting close to its 52-week low of $134.65 and well below its one-year high of $171.48.
Despite the weak stock price, institutional investors have been adding to their positions. Morgan Dempsey Capital Management raised its PEP stake by 35.7% in Q1, purchasing 7,311 additional shares and bringing its total to 27,814 shares valued at around $4.3 million.
They weren’t alone. Jennison Associates increased its position by 157%, adding 323,278 shares for a total of 529,129. Mediolanum International Funds added 22.4% to its holding, now owning 254,688 shares.
Overall, institutional investors hold 73.07% of PepsiCo stock.
On the earnings front, PepsiCo reported Q2 EPS of $2.20, beating the consensus estimate of $2.19 by a penny. Revenue came in at $24.18 billion, topping expectations of $23.95 billion.
Revenue was up 6.4% compared to the same quarter last year. The company’s net margin was 10.78%, and return on equity stood at 54.63%.
Dividend Raised for 54th Straight Year
PepsiCo declared a quarterly dividend of $1.48 per share, up from $1.42 — a 4% increase versus the prior year period. The annualized dividend now stands at $5.92 per share, with the next payment due September 30, 2026.
This marks PepsiCo’s 54th consecutive annual dividend increase, a streak stretching back to 1965.
The current yield sits at 4.3%, with a dividend payout ratio of 77.59%. For income-focused investors, that consistency is hard to ignore.
FY2026 EPS guidance is set between $8.55 and $8.71, with the analyst consensus sitting at $8.58 for the full year.
Analysts Mostly Hold
The analyst picture is mixed. UBS set a price target of $159.00, while Deutsche Bank put theirs at $155.00. Barclays trimmed its target from $144.00 to $138.00, maintaining an “equal weight” rating.
Sanford C. Bernstein set a target of $134.00 — below the current trading price.
Across 20 analysts, seven rate PEP a Buy, twelve say Hold, and one rates it a Sell. The consensus price target is $157.70.
Erste Group Bank has trimmed FY2026 and FY2027 earnings estimates, citing concern over slower profit growth. Broader data showing U.S. grocery unit sales falling adds to the cautious outlook.
PepsiCo’s CEO said the company remains cautiously optimistic on the second half, pointing to resilient demand despite weather-related uncertainty.
PepsiCo India reported strong first-half growth and announced a new food manufacturing facility in Tamil Nadu.
As of Friday, PEP’s 50-day moving average is $143.53 and its 200-day moving average is $151.21, both well above the current price.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment