PepsiCo Sees Unusually Large Options Volume (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) was the recipient of unusually large options trading activity on Tuesday. Stock investors acquired 92,829 call options on the stock. This represents an increase of approximately 296% compared to the average volume of 23,471 call options.

PepsiCo Trading Up 4.3%

Shares of PepsiCo stock opened at $141.16 on Thursday. PepsiCo has a fifty-two week low of $132.96 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The company has a market capitalization of $192.93 billion, a P/E ratio of 22.16, a P/E/G ratio of 2.73 and a beta of 0.36. The company has a fifty day moving average of $147.24 and a 200 day moving average of $151.86.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts’ consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to analysts’ expectations of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business’s quarterly revenue was up 8.5% on a year-over-year basis. During the same period last year, the firm earned $1.48 earnings per share. On average, sell-side analysts anticipate that PepsiCo will post 8.62 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 4.2%. The ex-dividend date was Friday, June 5th. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. PepsiCo’s dividend payout ratio is currently 92.94%.

Hedge Funds Weigh In On PepsiCo

Hedge funds have recently modified their holdings of the stock. Evergreen Advisors LLC bought a new stake in shares of PepsiCo in the first quarter worth about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in PepsiCo during the 4th quarter valued at approximately $26,000. Swiss RE Ltd. purchased a new position in PepsiCo during the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new stake in PepsiCo in the 4th quarter worth approximately $29,000. Finally, Networth Advisors LLC raised its holdings in shares of PepsiCo by 2,857.1% during the 1st quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after acquiring an additional 200 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on PEP shares. The Goldman Sachs Group upped their target price on shares of PepsiCo from $180.00 to $183.00 and gave the company a “buy” rating in a report on Friday, April 17th. Bank of America cut their price objective on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating for the company in a research report on Thursday, June 25th. UBS Group reduced their price objective on PepsiCo from $190.00 to $186.00 and set a “buy” rating for the company in a research note on Tuesday, April 7th. BNP Paribas Exane lifted their target price on PepsiCo from $191.00 to $195.00 and gave the company an “outperform” rating in a research report on Friday, April 17th. Finally, Jefferies Financial Group set a $162.00 price target on PepsiCo in a report on Thursday, June 25th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $166.40.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo announced progress toward its 2030 agriculture goals, highlighting gains in regenerative farming, sustainable sourcing, and livelihoods initiatives, which supports its long-term ESG and supply-chain strategy. PepsiCo Announces Progress Toward 2030 Agriculture Goals
• Positive Sentiment: JPMorgan reaffirmed an Overweight rating on PepsiCo while trimming its price target to $170 from $178, suggesting analysts still see meaningful upside from current levels. JPMorgan Adjusts Price Target on PepsiCo
• Positive Sentiment: Citi also kept a Buy rating on PepsiCo, lowering its target to $170 from $182 ahead of Q2 results, indicating the firm remains constructive on the stock despite slightly softer earnings expectations. Citi Maintains Bullish Outlook on PepsiCo
• Positive Sentiment: Unusually heavy call-option buying in PepsiCo suggests some traders are positioning for a rebound or further upside. Investors Buy Large Volume of PepsiCo Call Options
• Neutral Sentiment: Several reports focused on valuation and price-target commentary, with analysts generally still seeing upside but also acknowledging that earnings growth may be moderating.
• Negative Sentiment: Some coverage noted PepsiCo underperformed peers and highlighted continued investor concern about growth, which can pressure sentiment around the stock. PepsiCo Inc. stock underperforms Monday when compared to competitors
• Negative Sentiment: Erste Group slightly lowered its FY2027 EPS estimate for PepsiCo, reinforcing the view that profit growth could remain limited. MarketBeat PepsiCo coverage

About PepsiCo

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.