PepsiCo (NASDAQ:PEP) Shares Down 1.8% on Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP) traded down 1.8% during trading on Friday after Citigroup lowered their price target on the stock from $142.00 to $135.00. Citigroup currently has a neutral rating on the stock. PepsiCo traded as low as $125.29 and last traded at $125.97. Approximately 9,847,018 shares were traded during trading, an increase of 22% from the average daily volume of 8,090,233 shares. The stock had previously closed at $128.34.

A number of other equities research analysts also recently issued reports on PEP. Weiss Ratings downgraded shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 24th. Morgan Stanley set a $145.00 target price on shares of PepsiCo in a research report on Friday. Piper Sandler lowered their price target on shares of PepsiCo from $176.00 to $140.00 and set an “overweight” rating for the company in a report on Friday. UBS Group reduced their price objective on PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday, October 2nd. Finally, Bank of America decreased 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. Five equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo currently has a consensus rating of “Hold” and a consensus price target of $145.85.

Insider Transactions at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction dated 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 sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.12% of the stock is currently owned by insiders.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded third-quarter expectations, reporting adjusted EPS of $2.34 versus a $2.29 consensus and revenue of $25.27 billion, up 5.6% year over year. International growth, pricing and healthier snack products helped offset domestic weakness. PepsiCo beats third-quarter expectations but cuts profit outlook
• Positive Sentiment: The company plans additional cost reductions and investments to support its North American turnaround. It also completed a $746.24 million repurchase of 5 million shares, providing support through capital returns. Is PepsiCo a Bargain Following Its Buyback?
• Positive Sentiment: UBS said the valuation discount appears excessive relative to PepsiCo’s recovery potential, while maintaining an attractive risk-reward view. BNP Paribas Exane retained an “outperform” rating despite lowering its price target to $157. UBS says Pepsi offers attractive risk-reward
• Neutral Sentiment: PepsiCo is raising prices on Doritos, Ruffles, SunChips and some beverages by single-digit percentages. The move may help offset inflation and input costs, but could further pressure volumes as consumers seek cheaper options. PepsiCo raising prices on snacks and sodas
• Negative Sentiment: PepsiCo reduced its 2026 earnings outlook to $8.344–$8.425 per share, below the roughly $8.55 analyst consensus, citing higher costs and persistent North American weakness. Management also warned that North American margins may remain pressured into the fourth quarter. North America weakness drives guidance cut
• Negative Sentiment: U.S. soda volumes declined, and analysts warn PepsiCo is losing beverage momentum and potentially market share to Coca-Cola. The slower turnaround, changing consumer preferences and higher prices are raising concerns about volume recovery and 2027 growth. Pepsi soda sales decline amid consumer shift

Hedge Funds Weigh In On PepsiCo

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. boosted its stake in shares of PepsiCo by 2.1% during 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 period. State Street Corp lifted its holdings in PepsiCo by 1.7% during the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company’s stock valued at $8,179,099,000 after buying an additional 987,582 shares in the last quarter. Auto Owners Insurance Co lifted 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 valued at $7,068,777,000 after buying an additional 48,923,629 shares in the last quarter. Bank of America Corp DE boosted 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 buying an additional 133,325 shares during the period. Finally, Amundi grew its stake in PepsiCo by 16.8% in the 1st quarter. Amundi now owns 11,444,671 shares of the company’s stock worth $1,777,243,000 after acquiring an additional 1,647,506 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Trading Down 1.8%

The stock’s 50-day moving average price is $135.75 and its 200 day moving average price is $143.17. 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 firm has a market capitalization of $171.94 billion, a PE ratio of 16.51, a price-to-earnings-growth ratio of 2.81 and a beta of 0.35.

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

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were issued a $1.48 dividend. The ex-dividend date was Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.7%. 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.