PepsiCo (NASDAQ:PEP) Stock Price Target Cut by Royal Bank Of Canada

PepsiCo (NASDAQ:PEP) had its target price reduced by equities researchers at Royal Bank Of Canada from $161.00 to $150.00 in a research note issued to investors on Tuesday, Marketbeat reports. The firm presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price target would suggest a potential upside of 21.23% from the company’s previous close.

Several other equities research analysts also recently weighed in on the stock. Weiss Ratings downgraded shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 24th. Bank of America dropped their price target on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating for the company in a research note on Thursday, June 25th. Wells Fargo & Company cut their price objective on PepsiCo from $140.00 to $135.00 and set an “equal weight” rating on the stock in a research report on Monday. TD Cowen reduced their price objective on PepsiCo from $145.00 to $133.00 and set a “hold” rating on the stock in a research note on Monday, September 28th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $138.00 target price (down from $155.00) on shares of PepsiCo in a report on Monday, September 28th. Five equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, PepsiCo currently has a consensus rating of “Hold” and a consensus price target of $150.20.

PepsiCo Stock Performance

NASDAQ PEP opened at $123.73 on Tuesday. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company has a market cap of $168.88 billion, a P/E ratio of 16.22, a P/E/G ratio of 2.85 and a beta of 0.35. The stock has a 50-day moving average of $135.99 and a two-hundred day moving average of $143.32. PepsiCo has a 1-year low of $123.47 and a 1-year high of $171.48.

PepsiCo (NASDAQ:PEP) last posted 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 business had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.92 earnings per share. As a group, analysts anticipate that PepsiCo will post 8.56 EPS for the current year.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction dated 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 owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The transaction 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 large investors have recently made changes to their positions in the company. BlackRock Inc. increased its position in PepsiCo by 2.1% during the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock worth $16,015,363,000 after buying an additional 2,440,377 shares during the period. State Street Corp boosted its holdings in shares of 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 acquiring an additional 987,582 shares during the period. Auto Owners Insurance Co grew its position in shares of PepsiCo by 14,857.8% during the fourth 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 grew its position in shares of PepsiCo by 0.6% during the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company’s stock worth $3,305,146,000 after acquiring an additional 133,325 shares during the last quarter. Finally, Amundi increased its holdings in shares of PepsiCo by 16.8% in the 1st quarter. Amundi now owns 11,444,671 shares of the company’s stock valued at $1,777,243,000 after acquiring an additional 1,647,506 shares during the period. 73.07% of the stock is owned by institutional investors and hedge funds.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: A Delhi High Court interim ruling allows PepsiCo to continue using the “energy drink” label on existing Indian inventory, providing temporary relief from a proposed FSSAI labeling restriction. India energy drink labeling ruling
• Positive Sentiment: Carlsberg’s expansion into Georgia and Armenia increases PepsiCo’s bottling footprint to 17 markets across Eastern Europe and Central Asia, supporting international distribution through regional partners. PepsiCo bottling expansion
• Positive Sentiment: Some analysts and options-market data point to potential upside if PepsiCo delivers an earnings beat, while the company’s sizeable dividend yield and long record of annual payout increases may attract income-focused investors. PEP earnings options outlook
• Neutral Sentiment: Analysts expect roughly $2.29–$2.30 in adjusted EPS on approximately $25 billion of revenue, with investors focused on North American snack volumes, pricing, margins, international growth and management’s outlook. PepsiCo Q3 earnings preview
• Negative Sentiment: Pre-earnings commentary is cautious: RBC described the quarter as potentially soft and lowered its price target to $150, citing limited top-line upside, persistent consumer pressure and rising freight and logistics costs. RBC PepsiCo price target cut
• Negative Sentiment: Weak U.S. snack demand, affordability concerns and the need to revive volumes are central investor worries. Analysts also question whether PepsiCo can meet growth and margin targets associated with activist investor Elliott Investment Management.
• Negative Sentiment: The growing use of GLP-1 weight-loss drugs is viewed as a longer-term risk to demand for salty snacks and sugary beverages, increasing pressure on PepsiCo to diversify and demonstrate sustainable growth. GLP-1 pressure on PepsiCo
• Negative Sentiment: PepsiCo is also managing a voluntary recall of approximately 122,000 cases of Gatorade over undeclared dyes, creating potential costs and reputational risk, although the financial impact is not yet clear. Gatorade recall

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.