Stock Traders Buy Large Volume of Call Options on PepsiCo (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) was the recipient of unusually large options trading activity on Friday. Stock traders bought 55,189 call options on the company. This is an increase of approximately 71% compared to the average volume of 32,328 call options.

PepsiCo Stock Down 2.8%

Shares of PEP stock traded down $3.82 during trading hours on Friday, reaching $135.01. The company had a trading volume of 2,564,203 shares, compared to its average volume of 8,144,974. The business has a fifty day simple moving average of $134.15 and a 200-day simple moving average of $141.57. The company has a market cap of $183.99 billion, a price-to-earnings ratio of 16.96, a price-to-earnings-growth ratio of 4.01 and a beta of 0.35. PepsiCo has a 12 month low of $123.47 and a 12 month high of $171.48. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.94 and a quick ratio of 0.76.

PepsiCo (NASDAQ:PEP) last issued its earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.05. The firm had revenue of $25.27 billion for the quarter, compared to analyst estimates of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The business’s revenue was up 5.6% on a year-over-year basis. During the same period in the previous year, the company posted $2.29 earnings per share. On average, research analysts expect that PepsiCo will post 8.41 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on PEP. Jefferies Financial Group reaffirmed a “hold” rating on shares of PepsiCo in a research note on Thursday, October 8th. TD Cowen dropped their price target on shares of PepsiCo from $145.00 to $133.00 and set a “hold” rating for the company in a research report on Monday, September 28th. Wells Fargo & Company lowered their target price on PepsiCo from $140.00 to $135.00 and set an “equal weight” rating for the company in a research note on Monday, October 5th. The Goldman Sachs Group restated a “buy” rating and issued a $165.00 price target on shares of PepsiCo in a report on Thursday, October 8th. Finally, Piper Sandler cut their price target on shares of PepsiCo from $176.00 to $140.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned 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 a consensus target price of $143.28.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Taco Bell partnership extended through 2036. PepsiCo will remain Taco Bell’s beverage partner in the U.S. and several international markets, preserving distribution for brands including Mountain Dew Baja Blast and creating opportunities for new crafted, functional and energy drinks. The agreement is especially supportive after KFC, another Yum Brands chain, selected Coca-Cola in the U.S. Pepsi renews contract with Taco Bell
• Positive Sentiment: New snack and beverage initiatives could support longer-term growth. PepsiCo is expanding Quaker products in India and launching Good Warrior protein bars, while its multipack snack business and product innovation may help improve North American volumes despite current margin pressure. Can PepsiCo’s Multipack Business Support Snack Growth?
• Neutral Sentiment: Analyst estimates moved lower but remain near consensus. Erste Group reduced its FY2026 EPS forecast to $8.39 from $8.55 and its FY2027 estimate to $8.60 from $8.97. The FY2026 projection is broadly aligned with the $8.41 consensus, suggesting limited near-term earnings momentum but no major consensus reset. PepsiCo analyst estimates
• Negative Sentiment: Soft beverage volumes and restructuring concerns are weighing on sentiment. PepsiCo is closing its Knoxville, Tennessee bottling plant, affecting more than 120 roles, as it responds to pressure in North American beverages. The closure highlights efforts to adjust capacity amid weaker demand.
• Negative Sentiment: Dividend safety is under scrutiny. With PepsiCo’s stock well below its peak and its earnings outlook reduced, investors are examining whether free cash flow sufficiently covers the company’s multibillion-dollar dividend commitment. A thin cash payout cushion could limit the appeal of the roughly 4% yield and increase concerns about future dividend growth. Is PepsiCo’s Dividend Still Safe?

Insider Activity

In related news, Director Robert C. Pohlad bought 184,646 shares of the company’s stock in a transaction that occurred on Wednesday, October 14th. The shares were acquired at an average cost of $128.28 per share, for a total transaction of $23,686,388.88. Following the acquisition, the director owned 433,009 shares in the company, valued at $55,546,394.52. This represents a 74.35% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP David Flavell sold 2,900 shares of the business’s 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 completion of the sale, the executive vice president directly owned 74,825 shares of the company’s stock, valued at $10,441,080.50. The trade was a 3.73% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On PepsiCo

A number of large investors have recently modified their holdings of the stock. Evergreen Advisors LLC bought a new stake in PepsiCo during the first quarter worth about $25,000. Montgomery Financial Services LLC purchased a new position in PepsiCo during the second quarter valued at approximately $25,000. Atlatl Advisers LLC purchased a new position in PepsiCo in the 2nd quarter worth approximately $31,000. Osterweis Capital Management Inc. purchased a new stake in PepsiCo in the 2nd quarter worth $31,000. Finally, Networth Advisors LLC grew its holdings in shares of PepsiCo by 2,857.1% in the first quarter. Networth Advisors LLC now owns 207 shares of the company’s stock valued at $32,000 after purchasing an additional 200 shares in the last quarter. Institutional investors own 73.07% of the company’s stock.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.