Royal Bank Of Canada Cuts PepsiCo (NASDAQ:PEP) Price Target to $150.00

PepsiCo (NASDAQ:PEP) had its price target decreased by Royal Bank Of Canada from $161.00 to $150.00 in a report published on Tuesday, MarketBeat.com reports. Royal Bank Of Canada currently has a sector perform rating on the stock.

Several other brokerages have also weighed in on PEP. Bank of America lowered their price objective on PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research report on Thursday, June 25th. JPMorgan Chase & Co. cut PepsiCo from an “overweight” rating to a “neutral” rating and reduced their target price for the stock from $170.00 to $138.00 in a research report on Tuesday, September 29th. UBS Group lowered their price target on shares of PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a report on Friday, October 2nd. Jefferies Financial Group set a $138.00 price objective on shares of PepsiCo in a research note on Tuesday, September 29th. Finally, Piper Sandler set a $176.00 target price on shares of PepsiCo in a research note on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $149.30.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $128.34 on Tuesday. The company has a market cap of $175.17 billion, a price-to-earnings ratio of 16.82, a PEG ratio of 2.81 and a beta of 0.35. The business has a 50 day moving average price of $135.75 and a 200 day moving average price of $143.17. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. PepsiCo has a twelve month low of $123.47 and a twelve month high of $171.48.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings results on Thursday, October 8th. The company reported $2.34 EPS for the quarter, topping the consensus estimate of $2.29 by $0.05. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. During the same period in the previous year, the business posted $2.29 EPS. The company’s revenue for the quarter was up 5.6% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. Research analysts predict that PepsiCo will post 8.56 earnings per share for the current year.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were given a dividend of $1.48 per share. The ex-dividend date was Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.6%. PepsiCo’s dividend payout ratio (DPR) is 77.59%.

Insider Buying and Selling

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction dated 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 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.12% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PepsiCo

A number of large investors have recently bought and sold shares of PEP. BlackRock Inc. increased its stake 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 buying an additional 2,440,377 shares in the last quarter. State Street Corp lifted its position in PepsiCo by 1.7% during the 2nd 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 in the last quarter. Auto Owners Insurance Co grew its holdings in PepsiCo by 14,857.8% during the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after acquiring an additional 48,923,629 shares during the last quarter. Bank of America Corp DE increased its position in PepsiCo by 0.6% in the 1st quarter. Bank of America Corp DE now owns 21,283,701 shares of the company’s stock valued at $3,305,146,000 after acquiring an additional 133,325 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of PepsiCo by 4.9% in the second 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 acquiring an additional 549,336 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo reported adjusted earnings of $2.34 per share, above the $2.29 analyst consensus, while revenue rose 5.6% year over year to $25.27 billion, exceeding expectations. International growth, pricing and stronger healthier snack offerings helped support the results. PepsiCo earnings top estimates, but company lowers full-year forecast
• Positive Sentiment: Operating profit increased sharply, and management plans additional cost reductions and investments to improve the North American business. The company also expects to return approximately $8.9 billion to shareholders through dividends and repurchases, supporting the stock’s income appeal. PepsiCo to cut costs as weak North America business hurts annual core profit forecast
• Positive Sentiment: PepsiCo plans to raise prices on selected Doritos, Ruffles, SunChips and beverage products. The move could help offset inflation and other input costs if consumers accept the increases. PepsiCo is raising prices on Doritos and more after a weak quarter in North America
• Neutral Sentiment: The stock trades near its yearly low with a roughly 4.7% dividend yield and a relatively modest earnings multiple, attracting value and income investors. However, analysts have made modest fair-value reductions and become more cautious about the turnaround. PepsiCo stock sees modest fair value cut
• Negative Sentiment: PepsiCo lowered its fiscal 2026 core EPS-growth outlook to approximately 1%–2%, with projected EPS of $8.344–$8.425 versus an $8.55 consensus. North American food and beverage volumes remain weak, and margins are expected to face further pressure in the fourth quarter. PepsiCo running out of time to meet growth targets
• Negative Sentiment: U.S. consumers are reducing purchases of Pepsi soda and some salty snacks because of affordability concerns, shifting eating habits and growing interest in lower-calorie products. Analysts warn that Coca-Cola may be gaining beverage market share. PepsiCo has a North America problem

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.