PepsiCo Stock: Institutional Investors Signal Confidence Amid Strategic Shifts

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While PepsiCo shares have faced headwinds in the equity markets this year, significant strategic moves are unfolding behind the scenes. As the stock price searches for a sustainable turnaround, major investors are adjusting their holdings and management is launching a high-profile marketing initiative. This raises a pivotal question for shareholders: are these developments the foundation for a lasting recovery or merely short-term measures?

For income-focused investors, Friday, December 5th, is a key date on the calendar, marking the ex-dividend day. The company offers a quarterly dividend of $1.4225 per share, which translates to an attractive yield of approximately 3.8%. However, a payout ratio exceeding 108% warrants attention, as it prompts considerations about the long-term sustainability of such distributions.

Fundamentally, PepsiCo's recent quarterly report demonstrated strength. For the third quarter, the company delivered results that surpassed market expectations for both earnings per share and revenue. Despite this operational solidity, the technical chart picture remains challenging. Since the start of the year, the stock has declined by more than 13%, with its price at €126.92 as it continues to seek a stable base from which to mount a recovery.

Major Investors Place Their Bets

Current filings reveal substantial activity among institutional players, suggesting that sophisticated capital views the current valuation as an entry opportunity. Invesco Ltd. aggressively expanded its stake in the second quarter of 2025, increasing its holding by over 11.7% to more than 12 million shares.

An even more pronounced vote of confidence comes from Norway's central bank, Norges Bank, which initiated a new position valued at approximately $2.33 billion. Although some sellers, such as Schroder, have emerged, the overall institutional ownership rate of over 73% continues to signal strong professional belief in the company's long-term fundamentals.

Strategic Moves: Marketing and Market Share

Operationally, PepsiCo is counterattacking with a global marketing offensive. A partnership with the Mercedes-AMG PETRONAS Formula One team is set to begin in 2026. The corporation aims to leverage the premier racing series' massive reach to strategically position brands like Gatorade and Doritos with younger demographics.

Simultaneously, Pepsi is mounting a direct assault on its arch-rival, Coca-Cola. Since the beginning of the year, the "Pepsi Zero Sugar" division has grown by a substantial 30.8%, significantly outpacing broader market growth. In 34 test markets, the product reportedly achieved a 100% win rate in direct comparisons against Coke Zero—an indicator that fuels optimism for further market share gains.