PepsiCo Stock Gets Lower EPS Estimate from Erste Group Bank

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Erste Group Bank reduced their FY2027 earnings estimates for shares of PepsiCo in a research report issued to clients and investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now forecasts that the company will post earnings of $8.97 per share for the year, down from their previous forecast of $9.02. The consensus estimate for PepsiCo’s current full-year earnings is $8.40 per share.

A number of other research analysts have also recently commented on the stock. Wells Fargo & Company cut their price target on shares of PepsiCo from $140.00 to $135.00 and set an “equal weight” rating for the company in a research note on Monday, October 5th. Citigroup reiterated a “buy” rating on shares of PepsiCo in a research note on Friday. Morgan Stanley set a $145.00 target price on PepsiCo in a report on Friday. Evercore cut their target price on PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. Finally, Weiss Ratings lowered PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 24th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $145.50.

PepsiCo Stock Performance

NASDAQ PEP opened at $126.68 on Tuesday. The stock has a market cap of $172.63 billion, a P/E ratio of 15.91, a PEG ratio of 2.92 and a beta of 0.35. The company’s 50-day simple moving average is $135.22 and its 200 day simple moving average is $142.83. PepsiCo has a twelve month low of $123.47 and a twelve month high of $171.48. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings data on Thursday, October 8th. The company reported $2.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.29 by $0.05. The company had revenue of $25.27 billion during the quarter, compared to analysts’ expectations of $24.95 billion. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business’s revenue was up 5.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.29 EPS. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th were issued 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 payout ratio is presently 74.37%.

Insider Buying and Selling

In related news, EVP David Flavell sold 2,900 shares of the stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PepsiCo

A number of institutional investors and hedge funds have recently bought and sold shares of PEP. Evergreen Advisors LLC acquired a new stake in shares of PepsiCo in the first quarter valued at approximately $25,000. Montgomery Financial Services LLC acquired a new position in PepsiCo during the 2nd quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in PepsiCo in the 4th quarter valued at $26,000. Atlatl Advisers LLC acquired a new stake in shares of PepsiCo in the 2nd quarter valued at $31,000. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of PepsiCo in the 2nd quarter valued at $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Freedom Broker upgraded PepsiCo from “hold” to “strong buy,” providing a notable near-term sentiment boost.
• Positive Sentiment: PepsiCo is expanding functional beverages, protein-rich snacks and zero-sugar products to capture wellness demand. The strategy could diversify growth beyond traditional soda and snacks. Can PepsiCo’s Functional Portfolio Capture Wellness Demand?
• Neutral Sentiment: The stock’s lower valuation and roughly 4.7% dividend yield are attracting income-oriented investors, though some analysts argue the shares are not yet inexpensive enough given the company’s growth and margin challenges. PepsiCo Stock: A 4.7% Dividend Yield Makes the Stock Look Cheap
• Neutral Sentiment: Recent quarterly results showed revenue growth and an earnings beat, while euro-denominated bond offerings strengthened liquidity. However, the new debt also adds to leverage and interest-rate exposure.
• Negative Sentiment: PepsiCo lowered estimates for its Poppi acquisition as soda sales weakened, highlighting the difficulty of turning around its North American beverage business. Management is adding functional benefits to Poppi and increasing promotional urgency. PepsiCo Cuts Estimates for Poppi Payout While Soda Sales Slump
• Negative Sentiment: Barclays reduced its price target to $126 and kept an “equal weight” rating, while Goldman Sachs also cut its target because of inflation and cost pressures. PepsiCo additionally faces an Indian court setback over labeling new Sting bottles as an “energy drink.”

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.