PepsiCo (NASDAQ:PEP) Hits New 12-Month Low After Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP) shares reached a new 52-week low during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $161.00 to $150.00. Royal Bank Of Canada currently has a sector perform rating on the stock. PepsiCo traded as low as $124.13 and last traded at $124.2350, with a volume of 3507239 shares changing hands. The stock had previously closed at $125.71.

Several other equities analysts have also weighed in on PEP. Weiss Ratings lowered shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, September 24th. UBS Group cut their price target on PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday. Evercore dropped their price objective on PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Piper Sandler set a $176.00 price target on PepsiCo in a research note on Thursday, July 9th. Finally, Jefferies Financial Group set a $138.00 price objective on shares of PepsiCo in a research note on Tuesday, September 29th. Five research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $150.20.

Insider Buying and Selling

In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction 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 transaction, the executive vice president directly 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. Corporate insiders own 0.12% of the company’s stock.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s long-standing dividend growth and roughly 4.7% yield are attracting income-oriented investors, who view the depressed valuation as an opportunity if the company can stabilize operations. My Only Dividend Buy This October Has Raised Its Payout Every Year for Decades
• Positive Sentiment: Carlsberg’s planned expansion into Georgia and Armenia would extend PepsiCo’s bottling partnership to 17 Eastern European and Central Asian markets, supporting international distribution. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Positive Sentiment: A Delhi High Court ruling temporarily allows PepsiCo and partners to continue selling existing products labeled as energy drinks in India, limiting the immediate commercial impact of a labeling dispute. Delhi High Court Energy Drink Ruling

Institutional Investors Weigh In On PepsiCo

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. raised its holdings in shares of PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock valued at $16,015,363,000 after purchasing an additional 2,440,377 shares during the last quarter. State Street Corp grew its position in PepsiCo by 1.7% in the second quarter. State Street Corp now owns 60,406,932 shares of the company’s stock valued at $8,179,099,000 after purchasing an additional 987,582 shares in the last quarter. Auto Owners Insurance Co grew its position in PepsiCo by 14,857.8% in the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock valued at $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Bank of America Corp DE lifted its position in PepsiCo by 0.6% during the 1st quarter. Bank of America Corp DE now owns 21,283,701 shares of the company’s stock worth $3,305,146,000 after buying an additional 133,325 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of PepsiCo by 4.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company’s stock worth $1,600,114,000 after buying an additional 549,336 shares during the last quarter. Institutional investors own 73.07% of the company’s stock.

PepsiCo Price Performance

The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The company has a fifty day moving average price of $136.38 and a two-hundred day moving average price of $143.53. The company has a market cap of $169.45 billion, a P/E ratio of 16.29, a PEG ratio of 2.85 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.19 by $0.01. The company had revenue of $24.18 billion during 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 firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, sell-side analysts anticipate that PepsiCo, Inc. will post 8.56 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th were paid a dividend of $1.48 per share. The ex-dividend date was Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.8%. PepsiCo’s payout ratio is currently 77.59%.

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.