Stock Traders Purchase High Volume of PepsiCo Call Options (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) was the target of some unusual options trading on Monday. Investors purchased 45,894 call options on the company. This represents an increase of 96% compared to the average volume of 23,469 call options.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusual options activity showed traders buying far more call options than usual, suggesting some investors are positioning for a rebound in PepsiCo shares.
• Positive Sentiment: PepsiCo continues to draw investor interest as a dividend and defensive large-cap stock, and one article highlighted the company among broader “best stocks to buy” lists.
• Neutral Sentiment: PepsiCo is expanding into newer growth areas, including its House of Treats beverage platform for entertainment and hospitality venues, and a regenerative farming partnership that could support longer-term brand and supply-chain strength.
• Neutral Sentiment: The stock advanced in the latest session but still lagged the broader market, reflecting a mixed near-term backdrop rather than a strong catalyst-driven move.
• Negative Sentiment: Piper Sandler cut its price target on PepsiCo, adding to concerns that growth is slowing and that near-term upside may be limited. PepsiCo (PEP) Price Target Lowered at Piper Sandler. Here is Why
• Negative Sentiment: TD Cowen also lowered its price target and kept a Hold rating, while cutting its second-quarter organic growth forecast below consensus, reinforcing worries about softer sales momentum. PepsiCo (PEP) Gets Mixed Wall Street Reviews as Growth Challenges Persist
• Negative Sentiment: Additional reports noted more analyst price-target reductions for PepsiCo, signaling that Wall Street expectations are moving lower ahead of the next results update. PepsiCo (PEP) Advances But Underperforms Market: Key Facts

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. The Goldman Sachs Group lifted their price target on PepsiCo from $180.00 to $183.00 and gave the company a “buy” rating in a report on Friday, April 17th. Rothschild & Co Redburn lifted their price target on PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. Piper Sandler cut their price target on PepsiCo from $181.00 to $178.00 and set an “overweight” rating on the stock in a report on Friday. Argus upgraded PepsiCo to a “hold” rating in a report on Tuesday, February 17th. Finally, BNP Paribas Exane lifted their price target on PepsiCo from $191.00 to $195.00 and gave the company an “outperform” rating in a report on Friday, April 17th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $167.35.

PepsiCo Stock Up 1.4%

Shares of PEP stock opened at $146.25 on Tuesday. PepsiCo has a 1-year low of $127.60 and a 1-year high of $171.48. The stock’s fifty day moving average price is $150.90 and its 200 day moving average price is $152.42. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The company has a market cap of $199.89 billion, a price-to-earnings ratio of 22.96, a price-to-earnings-growth ratio of 2.61 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to the consensus estimate of $18.89 billion. During the same period in the previous year, the business earned $1.48 EPS. The firm’s revenue for the quarter was up 8.5% on a year-over-year basis. On average, research analysts expect that PepsiCo will post 8.63 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be paid a dividend of $1.48 per share. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, June 5th. This represents a $5.92 annualized dividend and a yield of 4.0%. PepsiCo’s dividend payout ratio (DPR) is presently 92.94%.

Institutional Trading of PepsiCo

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Evergreen Advisors LLC acquired a new stake in PepsiCo during the 1st quarter worth about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo during the 4th quarter worth about $26,000. Swiss RE Ltd. acquired a new stake in PepsiCo during the 4th quarter worth about $28,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo during the 4th quarter worth about $29,000. Finally, Imprint Wealth LLC acquired a new stake in PepsiCo during the 3rd quarter worth about $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Company Profile

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.