PepsiCo (NASDAQ:PEP) Stock Price Down 1.6% After Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP) shares traded down 1.6% during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $161.00 to $150.00. Royal Bank Of Canada currently has a sector perform rating on the stock. PepsiCo traded as low as $123.47 and last traded at $123.73. Approximately 13,242,679 shares changed hands during mid-day trading, an increase of 66% from the average daily volume of 7,984,781 shares. The stock had previously closed at $125.71.

A number of other equities research analysts also recently commented on the company. Citigroup reduced their target price on PepsiCo from $145.00 to $142.00 and set a “neutral” rating on the stock in a research report on Thursday, September 24th. Morgan Stanley cut their price objective on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. TD Cowen reduced their price objective on shares of PepsiCo from $145.00 to $133.00 and set a “hold” rating on the stock in a report on Monday, September 28th. Evercore decreased their target price on shares of PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. Finally, Barclays lowered their target price on shares of PepsiCo from $142.00 to $133.00 and set an “equal weight” rating for the company in a research note on Wednesday, September 30th. Five equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo currently has an average rating of “Hold” and an average target price of $150.20.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the transaction, the executive vice president owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.12% of the company’s stock.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s bottling partnership with Carlsberg is expanding into Georgia and Armenia, increasing PepsiCo’s distribution reach to 17 markets across Eastern Europe and Central Asia. The move could support international beverage growth with limited capital investment. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Positive Sentiment: A Delhi High Court ruling allows PepsiCo and partners to continue selling existing products labeled as “energy drinks,” providing a temporary reprieve from an Indian labeling dispute, although new production under the label remains restricted. Delhi High Court Energy Drink Ruling
• Positive Sentiment: PepsiCo is emphasizing smaller packs and affordability-focused pricing to improve volumes as consumers become more price-sensitive. Its long record of dividend increases also remains attractive to income-oriented investors, with the stock’s roughly 4.7% yield offering support. PepsiCo Price-Pack Strategy
• Neutral Sentiment: PepsiCo reports fiscal third-quarter results before the market opens on October 8. Analysts expect approximately $2.29–$2.30 in adjusted EPS and nearly $25 billion in revenue; investors will closely watch North American food volumes, pricing, margins, and management’s full-year outlook. PepsiCo Q3 Earnings Preview
• Negative Sentiment: Reports say U.S. snack sales remain weak and PepsiCo is under pressure to revive growth and meet targets established after Elliott Investment Management’s investment. Analysts and options traders see limited upside if the earnings report is soft, while RBC lowered its price target to $150 and retained a sector-perform rating. PepsiCo Growth and GLP-1 Pressure
• Negative Sentiment: The rapid adoption of GLP-1 weight-loss drugs is raising concerns that consumers may reduce purchases of salty snacks and sugary beverages, creating a longer-term threat to PepsiCo’s growth goals. PepsiCo GLP-1 Threat
• Negative Sentiment: PepsiCo also recalled approximately 122,000 cases of Gatorade over undeclared dyes, creating potential costs and reputational risk, though the recall appears limited relative to the company’s overall scale. PepsiCo Gatorade Recall

Hedge Funds Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Moody National Bank Trust Division increased its position in shares of PepsiCo by 10.5% during the third quarter. Moody National Bank Trust Division now owns 17,276 shares of the company’s stock worth $2,189,000 after acquiring an additional 1,641 shares during the period. Adelphi Trust Co increased its holdings in PepsiCo by 6.2% during the 3rd quarter. Adelphi Trust Co now owns 7,862 shares of the company’s stock worth $996,000 after purchasing an additional 457 shares during the period. Rockland Trust Co. raised its position in PepsiCo by 2.6% in the 3rd quarter. Rockland Trust Co. now owns 367,153 shares of the company’s stock valued at $46,526,000 after purchasing an additional 9,403 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised its position in PepsiCo by 10.5% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 127,986 shares of the company’s stock valued at $17,321,000 after purchasing an additional 12,193 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of PepsiCo by 1.7% in the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company’s stock valued at $8,179,099,000 after buying an additional 987,582 shares during the period. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Performance

The stock has a 50-day moving average price of $136.38 and a 200 day moving average price of $143.53. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The firm has a market capitalization of $168.88 billion, a price-to-earnings ratio of 16.22, a P/E/G ratio of 2.85 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the previous year, the firm earned $0.92 earnings per share. The firm’s quarterly revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts forecast that PepsiCo, Inc. will post 8.56 EPS for the current year.

PepsiCo Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were paid a dividend of $1.48 per share. The ex-dividend date was Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.8%. PepsiCo’s payout ratio is presently 77.59%.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay’s, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company’s operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.