PepsiCo Surges to 62nd in Trading Volume Amid Institutional Buying and Analyst Divergence

On August 4, 2025, PepsiCo (PEP) closed at $139.47, rising 0.20% with a trading volume of $1.17 billion, ranking 62nd in market activity. The stock’s 50-day moving average stands at $134.63, while its 200-day average is $140.83, reflecting modest short-term volatility against a broader 12-month range of $127.60 to $180.91.

Institutional investors have shown renewed interest in PepsiCo. IQ EQ Fund Management Ireland increased its stake by 3.2% in Q1, holding 89,158 shares valued at $13.37 million. Additional purchases by Elite Financial, Measured Risk Portfolios, and others in Q1 and Q4 added $146,000 to the company’s institutional ownership, which now accounts for 73.07% of shares. This activity underscores confidence in the beverage giant’s long-term stability despite sector headwinds.

Recent earnings data highlighted PepsiCo’s resilience. The company reported Q2 earnings of $2.12 per share, exceeding estimates by $0.09, with revenue reaching $22.73 billion—$450 million above forecasts. Analysts revised full-year projections upward, with Zacks Research raising its FY2025 EPS estimate to $8.02 from $7.89. However, mixed sentiment persists: Bank of America cut its price target to $145 from $150, while UBS raised its objective to $169, reflecting divergent views on pricing power and growth potential.

PepsiCo’s dividend strategy remains a draw for income-focused investors. The company announced a quarterly dividend of $1.4225 per share, payable on September 30, yielding 4.1%. With a payout ratio of 103.64%, the dividend’s sustainability hinges on consistent cash flow generation. Institutional ownership and a 53-year dividend growth streak position the stock as a defensive play in volatile markets.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to 2025, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile environments where high-volume stocks experience amplified price swings. Institutional and algorithmic activity further exacerbate these movements, as seen in PepsiCo’s recent institutional buying and analyst-driven price target adjustments.