Sterling Investment Management Opens New $3 Million Pepsi (NASDAQ: PEP) Position: Should Investors Buy Too?
Key Points
Sterling bought 21,079 shares of PepsiCo; estimated trade value of approximately $2.96 million.
The position represents 1.8% of the fund’s 13F reportable assets under management.
Sterling's post-trade stake: 21,079 shares, valued at $2,960,293 as of September 30, 2025.
PepsiCo is not among the fund’s top five holdings by position size.
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PepsiCo (NASDAQ:PEP) was the subject of a new position by Sterling Investment Management, which acquired 21,079 shares for an estimated $2.96 million as of Q3 2025, according to its SEC filing dated October 20, 2025.
What happened
Sterling Investment Management disclosed a new stake in PepsiCo, acquiring approximately 21,079 shares during the third quarter of 2025, according to a U.S. Securities and Exchange Commission (SEC filing) dated October 20, 2025.
The estimated transaction value was $2.96 million.
The position accounted for 1.8% of the fund's $166.48 million in reportable U.S. equity assets.
What else to know
This new position now represents 1.8% of total 13F assets under management as of September 30, 2025.
Top holdings after the filing:
- Vanguard Mortgage-Backed Securities ETF: $15.21 million (9.1% of AUM)
- Berkshire Hathaway Class B: $15.06 million (9.0% of AUM)
- SPDR Gold Shares ETF: $12.49 million (7.5% of AUM)
- SPDR Bloomberg 1-3 Month T-Bill ETF: $6.81 million (4.1% of AUM)
- S&P Global: $5.72 million (3.4% of AUM)
As of October 20, 2025, shares were priced at $153.64, down 12.2% over one year, trailing the S&P 500 by 24 percentage points for the year.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $92.37 billion |
| Net Income (TTM) | $7.22 billion |
| Dividend Yield | 3.62% |
| Price (as of market close October 20, 2025) | $153.64 |
Company snapshot
PepsiCo:
- Offers a broad portfolio of branded beverages and convenient foods, including snacks, cereals, ready-to-drink teas, juices, and dairy products.
- Generates revenue primarily through the manufacture, marketing, and distribution of consumer packaged goods sold via wholesale, retail, and e-commerce channels worldwide.
- Serves a global customer base, including grocery and convenience stores, foodservice operators, mass merchandisers, and e-commerce retailers.
PepsiCo is a leading global provider of non-alcoholic beverages and convenient foods, operating across multiple continents with a diverse product lineup.
The company leverages its scale, brand portfolio, and integrated distribution networks to maintain a strong presence in both developed and emerging markets.
Pepsi's strategy emphasizes a broad market reach to sustain its competitive position within the consumer defensive sector.
Foolish take
Sterling Investment Management's purchase of PepsiCo is noteworthy as it is a brand-new position for the firm.
Not only that, but it immediately becomes Sterling's 19th-largest position among its 67 holdings at 1.8% of its portfolio.
While PepsiCo won't be confused for a growth stock anymore, it has matured into a $200 billion beverage and snacking behemoth that offers investors a steadily growing dividend that yields 3.6%.
Over the last five years, Pepsi stock has essentially round-tripped back to where it started, only rising 2% annually. However, after the stock sold off over 30% from its all-time high, Sterling swooped in and opened a position in the steady-Eddie investment.
While Pepsi now trades at a low share price, it still isn't outrageously "cheap," trading at 19 times forward earnings. Growing sales, net income, and dividend payments by 6% annually over the last five years, Pepsi is more of a cornerstone investment than anything resembling a stock with multibagger potential.
For investors seeking stability, capital preservation, and dividend growth -- like Sterling Investment Management -- Pepsi could be a great addition to your portfolio. However, investors shouldn't necessarily expect market-smashing returns over the long haul.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their U.S. equity holdings.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm on behalf of clients.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Trailing: Refers to a performance measure calculated over a past period, such as one year, ending at the most recent date.
Consumer defensive sector: Industry group including companies that produce essential goods, such as food and beverages, that are less affected by economic cycles.
Fund holding: A specific security or asset that makes up part of an investment fund's portfolio.
Position size: The value or proportion of a particular investment relative to the total assets in a portfolio.
Stake: The amount of ownership or shares an investor or fund holds in a company.
TTM: The 12-month period ending with the most recent quarterly report.
Distribution network: The system a company uses to deliver products from manufacturing to end customers, including logistics and sales channels.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and S&P Global. The Motley Fool has a disclosure policy.
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