PepsiCo (NASDAQ:PEP) Hits New 12-Month Low – Should You Sell?

PepsiCo, Inc. (NASDAQ:PEP) hit a new 52-week low on Thursday . The stock traded as low as $133.36 and last traded at $132.9550, with a volume of 1969767 shares. The stock had previously closed at $134.34.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s high dividend yield and “Dividend King” status are attracting value-oriented investors. Commentary also points to the stock’s relatively modest valuation and potential appeal for investors seeking defensive income. This Dividend King Yielding 4X the S&P 500 Looks Like a Buy Right Now
• Positive Sentiment: A new nationwide partnership with The Great Greek Mediterranean Grill makes PepsiCo the restaurant chain’s official soft-drink provider, offering incremental distribution and sales opportunities. The Great Greek Mediterranean Grill Announces Partnership with PepsiCo
• Positive Sentiment: PepsiCo is expanding manufacturing capacity in India with a new foods plant, supporting long-term growth in an important emerging market. PepsiCo India inaugurates foods manufacturing plant in Assam
• Neutral Sentiment: PepsiCo elected Johnson & Johnson CEO Joaquin Duato as an independent director effective December 1. The appointment strengthens board experience but is unlikely to materially affect near-term earnings. PepsiCo Elects Joaquin Duato to Board of Directors
• Neutral Sentiment: A new corporate branding campaign is intended to highlight PepsiCo’s portfolio of food and beverage brands; reports clarify that the company is not changing its name. PepsiCo’s first corporate brand campaign
• Negative Sentiment: The stock’s move to a 52-week low and bearish technical signals are amplifying investor concern. Analysts and investors are weighing slower demand, margin pressure and recent price-target reductions; consensus analyst opinion remains “Hold.” PepsiCo Stock Drops to 52 Week-Low
• Negative Sentiment: Research estimates that GLP-1 weight-loss drugs could put substantial global food sales at risk, with Lay’s identified as one of the most exposed major brands. This raises a longer-term demand risk for PepsiCo’s snack portfolio. GLP-1 drugs put $73 billion in global food value at risk
• Negative Sentiment: PepsiCo is closing manufacturing and warehouse operations at a Maryland bottling facility, resulting in reported layoffs. The move may improve efficiency but signals near-term operational disruption and soft demand concerns. PepsiCo lays off 143 in Maryland

Analysts Set New Price Targets

A number of research firms recently issued reports on PEP. Evercore set a $150.00 price objective on PepsiCo in a report on Thursday, July 9th. Sanford C. Bernstein set a $134.00 target price on PepsiCo in a research note on Friday, July 10th. Jefferies Financial Group lowered their target price on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a research note on Friday, July 10th. BNP Paribas Exane cut their price target on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a report on Wednesday, July 8th. Finally, TD Cowen reaffirmed a “hold” rating on shares of PepsiCo in a research note on Friday, August 28th. Seven research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $157.90.

PepsiCo Trading Down 2.9%

The firm has a market capitalization of $177.09 billion, a P/E ratio of 17.01, a price-to-earnings-growth ratio of 2.81 and a beta of 0.35. The stock has a 50-day simple moving average of $138.62 and a two-hundred day simple moving average of $146.38. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP) last posted 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. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities research analysts anticipate that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued a $1.48 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.6%. PepsiCo’s payout ratio is currently 77.59%.

Insider Buying and Selling at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the company’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 sale, the executive vice president owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.12% of the company’s stock.

Institutional Trading of PepsiCo

A number of hedge funds have recently bought and sold shares of the stock. Security National Bank of Sioux City Iowa IA raised its holdings in PepsiCo by 24.4% in the second quarter. Security National Bank of Sioux City Iowa IA now owns 11,448 shares of the company’s stock worth $1,550,000 after purchasing an additional 2,248 shares in the last quarter. Anchor Investment Management LLC grew its position 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. Bullseye Investment Management LLC purchased a new position in shares of PepsiCo in the 2nd quarter worth approximately $114,000. Talon Private Wealth LLC bought a new position in shares of PepsiCo during the 2nd quarter worth approximately $226,000. Finally, Miramontes Capital LLC lifted its position in PepsiCo by 28.6% during the second quarter. Miramontes Capital LLC now owns 2,405 shares of the company’s stock valued at $326,000 after acquiring an additional 535 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.