PepsiCo (NASDAQ:PEP) Stock Falls 2.2% – Here’s What Happened

Shares of PepsiCo, Inc. (NASDAQ:PEP) fell 2.2% on Tuesday. The stock traded as low as $137.09 and last traded at $137.27. Approximately 8,377,886 shares were traded during mid-day trading, an increase of 2% from the average daily volume of 8,187,028 shares. The stock had previously closed at $140.42.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed and expanded its long-term beverage partnership with Taco Bell, retaining exclusive beverage-partner status and widening distribution in the U.S. and internationally. Plans include new functional and energy drink offerings, which could provide additional reach for its brands. What Is PepsiCo (PEP) Gaining From Its Expanded Beverage Partnership?
• Positive Sentiment: PepsiCo ranked among hedge funds’ most undervalued dividend-growth stocks, placing 10th on the cited list; 68 tracked funds held bullish positions. That investor interest may support sentiment toward PEP as an income-oriented stock. PepsiCo Remains a Popular Choice for Dividend Investors
• Neutral Sentiment: Coverage of PepsiCo’s functional-food strategy points to a potential area of strategic development, but the headline provides no details on expected sales, investments, or financial impact. Inside PepsiCo’s functional food strategy
• Neutral Sentiment: Costco has brought back a rare seasonal PepsiCo soda that fans reportedly stockpile. The return could help seasonal demand and product visibility, though the article gives no indication of a material effect on companywide results. Costco just brought back the rare PepsiCo seasonal soda fans stockpile for emergencies
• Negative Sentiment: A comparison asks how Coca-Cola’s stock moved ahead of PepsiCo’s, putting PEP’s relative performance in focus. Continued underperformance versus its main beverage rival could weigh on investor sentiment. How Did Coca-Cola Stock Leave PepsiCo Behind?

Analysts Set New Price Targets

PEP has been the subject of a number of research reports. Royal Bank Of Canada reduced their target price on shares of PepsiCo from $161.00 to $150.00 and set a “sector perform” rating for the company in a report on Tuesday, October 6th. Citigroup restated a “buy” rating on shares of PepsiCo in a research report on Friday, October 9th. UBS Group reduced their price objective on PepsiCo from $159.00 to $145.00 and set a “buy” rating for the company in a research note on Friday, October 2nd. Weiss Ratings cut PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, September 24th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $165.00 target price on shares of PepsiCo in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, PepsiCo presently has a consensus rating of “Hold” and a consensus price target of $143.28.

PepsiCo Price Performance

The company has a market cap of $187.06 billion, a price-to-earnings ratio of 17.24, a PEG ratio of 3.96 and a beta of 0.35. The company’s 50 day moving average price is $133.43 and its 200 day moving average price is $145.86. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, beating analysts’ consensus estimates of $2.29 by $0.05. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The company had revenue of $25.27 billion for the quarter, compared to analyst estimates of $24.95 billion. During the same quarter in the previous year, the company earned $2.29 EPS. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. Equities research analysts forecast that PepsiCo, Inc. will post 8.39 earnings per share for the current year.

Insider Transactions at PepsiCo

In related news, Director Robert C. Pohlad acquired 184,646 shares of the firm’s stock in a transaction that occurred on Wednesday, October 14th. The shares were purchased at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the acquisition, the director owned 433,009 shares in the company, valued at approximately $55,546,394.52. This represents a 74.35% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Ramon Laguarta sold 30,000 shares of the company’s stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the transaction, the chief executive officer owned 491,645 shares in the company, valued at $66,435,988.85. The trade was a 5.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On PepsiCo

Institutional investors have recently modified their holdings of the company. Core Capital Management & Research inc. bought a new stake in PepsiCo during the second quarter valued at about $932,000. State Street Corp increased its stake in shares of PepsiCo by 1.7% in the second quarter. State Street Corp now owns 60,406,932 shares of the company’s stock worth $8,179,099,000 after purchasing an additional 987,582 shares during the period. First Nebraska Trust Co bought a new position in shares of PepsiCo in the first quarter worth about $10,782,000. The Manufacturers Life Insurance Company lifted its position in shares of PepsiCo by 19.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,110,852 shares of the company’s stock worth $150,409,000 after purchasing an additional 177,468 shares during the last quarter. Finally, Jennison Associates LLC lifted its position in shares of PepsiCo by 157.0% during the 1st quarter. Jennison Associates LLC now owns 529,129 shares of the company’s stock worth $82,168,000 after purchasing an additional 323,278 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.