PepsiCo (NASDAQ:PEP) Stock Lifted to “Strong-Buy” by Freedom Broker

Freedom Broker upgraded shares of PepsiCo (NASDAQ:PEP) from a hold rating to a strong-buy rating in a research report sent to investors on Saturday,Zacks reports.

Several other research analysts have also recently weighed in on PEP. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of PepsiCo in a research note on Friday. UBS Group reduced their price objective on shares of PepsiCo from $159.00 to $145.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. Piper Sandler lowered their price objective on shares of PepsiCo from $176.00 to $140.00 and set an “overweight” rating on the stock in a research note on Friday. The Goldman Sachs Group reiterated a “buy” rating and issued a $165.00 target price on shares of PepsiCo in a report on Thursday. Finally, Evercore cut their target price on shares of PepsiCo from $150.00 to $135.00 in a research note on Wednesday, September 30th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $145.50.

PepsiCo Price Performance

Shares of PEP opened at $126.68 on Friday. The firm has a market capitalization of $172.63 billion, a price-to-earnings ratio of 15.91, a price-to-earnings-growth ratio of 2.92 and a beta of 0.35. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. PepsiCo has a one year low of $123.47 and a one year high of $171.48. The stock’s fifty day moving average is $135.22 and its 200-day moving average is $142.83.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Thursday, October 8th. The company reported $2.34 EPS for the quarter, topping analysts’ consensus estimates of $2.29 by $0.05. The company had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. PepsiCo’s revenue was up 5.6% on a year-over-year basis. During the same period in the previous year, the firm earned $2.29 EPS. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. Equities analysts anticipate that PepsiCo will post 8.40 EPS for the current year.

PepsiCo Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th were given a $1.48 dividend. This represents a $5.92 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend was Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is 74.37%.

Insider Buying and Selling at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the business’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 transaction of $404,666.00. Following the sale, the executive vice president owned 74,825 shares in the company, valued at $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PepsiCo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. Moody National Bank Trust Division raised its stake in PepsiCo by 10.5% during the 3rd quarter. Moody National Bank Trust Division now owns 17,276 shares of the company’s stock valued at $2,189,000 after purchasing an additional 1,641 shares during the period. Adelphi Trust Co lifted its holdings in shares of PepsiCo by 6.2% in the third quarter. Adelphi Trust Co now owns 7,862 shares of the company’s stock valued at $996,000 after purchasing an additional 457 shares in the last quarter. Rockland Trust Co. lifted its holdings in shares of PepsiCo by 2.6% in the third 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. boosted its position in shares of PepsiCo by 10.5% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 127,986 shares of the company’s stock worth $17,321,000 after buying an additional 12,193 shares during the period. Finally, State Street Corp boosted its position 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 buying an additional 987,582 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s third-quarter revenue increased 5.6% year over year to approximately $25.3 billion, while adjusted EPS exceeded analyst expectations. The company also raised prices on some products, which could help offset inflation and cost pressures. PepsiCo Q3 revenue and outlook
• Positive Sentiment: PepsiCo is expanding functional beverages, protein-rich snacks and zero-sugar products to capture demand for healthier and wellness-oriented offerings. Its Poppi acquisition is also being positioned as part of a soft-drink turnaround strategy. PepsiCo functional portfolio
• Positive Sentiment: Some investors view PEP as inexpensive after its prolonged decline, citing a dividend yield near 4.7%, strong brands and potentially attractive long-term cash-flow value. PepsiCo also received an A+ profitability grade in one screening report. PepsiCo dividend valuation
• Neutral Sentiment: PepsiCo raised roughly €999 million through euro-denominated senior notes. The financing improves liquidity but increases debt and interest obligations as the company faces pressure to improve margins. PepsiCo euro bond offering
• Neutral Sentiment: CEO Ramon Laguarta said PepsiCo does not plan to separate its snacks and beverage businesses, maintaining the company’s integrated strategy despite activist investor pressure.
• Negative Sentiment: Barclays lowered its PEP price target from $133 to $126 and assigned an “equal weight” rating, implying limited near-term upside. Goldman Sachs and other analysts also reduced their targets amid inflation, cost pressures and concerns about the earnings outlook. Goldman lowers PepsiCo target
• Negative Sentiment: PepsiCo’s reduced forecast and ongoing pressure in North American beverages have weakened investor confidence. Cautious consumers, higher costs and the need to improve margins remain key risks.
• Negative Sentiment: An Indian court refused relief in a labeling dispute involving Sting, preventing PepsiCo from labeling new bottles as an “energy drink,” creating a regulatory and branding headwind in that market. PepsiCo Sting labeling case

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.