PepsiCo (NASDAQ:PEP) Sets New 1-Year Low on Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP) shares hit a new 52-week low during trading on Thursday after Evercore lowered their price target on the stock from $150.00 to $135.00. The stock traded as low as $126.12 and last traded at $126.6390, with a volume of 457252 shares trading hands. The stock had previously closed at $126.72.

Several other research analysts have also issued reports on PEP. Barclays cut their price target on PepsiCo from $142.00 to $133.00 and set an “equal weight” rating on the stock in a report on Wednesday. Jefferies Financial Group set a $138.00 price objective on PepsiCo in a report on Tuesday. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Weiss Ratings downgraded shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, September 24th. Finally, Wells Fargo & Company decreased their price target on shares of PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $151.70.

Insider Buying and Selling at PepsiCo

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 stock was sold at an average price of $139.54, for a total value of $404,666.00. Following the transaction, the executive vice president owned 74,825 shares in the company, valued at $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 Securities & Exchange Commission, which is available through this hyperlink. 0.12% of the stock is owned by corporate insiders.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo remains potentially attractive to value and defensive investors after becoming deeply oversold, with its relative strength index near 30. The company also continues to offer income appeal after extending its dividend-growth streak to 54 consecutive years, with an annualized payout of approximately $5.92 per share. Top 3 Risk Off Stocks You’ll Regret Missing This Month
• Positive Sentiment: Management is emphasizing hydration, zero-sugar beverages, functional products and better-for-you foods, while using chefs and other innovation efforts to improve product appeal. PepsiCo also added Johnson & Johnson CEO Joaquin Duato to its board, bringing healthcare and international consumer-brand experience as the company expands its health-oriented portfolio. Can Innovation Help PepsiCo Outpace Industry Headwinds?
• Neutral Sentiment: PepsiCo is scheduled to report earnings Thursday. The report will be closely watched for evidence that pricing, innovation and cost controls are stabilizing its North American operations. PepsiCo Set to Announce Earnings on Thursday
• Neutral Sentiment: A new multiyear food-and-beverage partnership with Live Nation could support brand visibility and consumer engagement, although the near-term financial impact was not specified. PepsiCo and Live Nation Announce New Multi-Year Food and Beverage Partnership
• Negative Sentiment: JPMorgan downgraded PepsiCo to Neutral/Hold, citing persistent North American weakness, a stalled recovery, rising costs and pressure on growth estimates. This follows additional bearish analyst actions, including lower price targets from JPMorgan, Evercore and Barclays. PepsiCo’s North America Problems Aren’t Going Away Yet
• Negative Sentiment: Investors remain concerned that price increases after earlier discounts could further weaken demand for PepsiCo’s chips and beverages. Commentary has also raised questions about dividend sustainability if profits and operating cash flow continue to deteriorate. PepsiCo Walks a Tightrope

Hedge Funds Weigh In On PepsiCo

A number of hedge funds have recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. boosted its holdings in PepsiCo by 10.5% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 127,986 shares of the company’s stock worth $17,321,000 after purchasing an additional 12,193 shares during the last quarter. State Street Corp lifted its position in shares of PepsiCo by 1.7% during the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company’s stock worth $8,179,099,000 after buying an additional 987,582 shares in the last quarter. Security National Bank of Sioux City Iowa IA lifted its position in shares of PepsiCo by 24.4% during the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 11,448 shares of the company’s stock worth $1,550,000 after buying an additional 2,248 shares in the last quarter. Anchor Investment Management LLC boosted its stake in shares of PepsiCo by 3.6% in the 2nd quarter. Anchor Investment Management LLC now owns 23,781 shares of the company’s stock worth $3,220,000 after buying an additional 826 shares during the last quarter. Finally, Bullseye Investment Management LLC bought a new position in shares of PepsiCo in the second quarter valued at approximately $114,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Trading Up 0.4%

The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company has a market capitalization of $173.66 billion, a P/E ratio of 16.68, a price-to-earnings-growth ratio of 2.92 and a beta of 0.35. The firm has a fifty day moving average price of $137.41 and a 200-day moving average price of $144.41.

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

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were issued a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend was Friday, September 4th. PepsiCo’s payout ratio is 77.59%.

About PepsiCo

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.