PepsiCo (NASDAQ:PEP) Given New $150.00 Price Target at Royal Bank Of Canada

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

Several other research analysts have also recently issued reports on the company. Wells Fargo & Company cut their target price on PepsiCo from $140.00 to $135.00 and set an “equal weight” rating on the stock in a research report on Monday. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $138.00 price objective (down from $155.00) on shares of PepsiCo in a research note on Monday, September 28th. Bank of America cut their price objective on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a report on Thursday, June 25th. Morgan Stanley reduced their target price on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. Finally, Weiss Ratings downgraded shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, September 24th. Five equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $150.20.

PepsiCo Trading Up 0.0%

PEP opened at $125.71 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. PepsiCo has a fifty-two week low of $124.21 and a fifty-two week high of $171.48. The firm has a market capitalization of $171.58 billion, a PE ratio of 16.48, a P/E/G ratio of 2.85 and a beta of 0.35. The company’s 50-day moving average is $136.38 and its 200 day moving average is $143.53.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. The business had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company’s quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, research analysts predict that PepsiCo will post 8.56 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were paid a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date was Friday, September 4th. PepsiCo’s dividend payout ratio is presently 77.59%.

Insider Buying and Selling

In related news, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.12% of the company’s stock.

Hedge Funds Weigh In On PepsiCo

Several hedge funds have recently made changes to their positions in the stock. 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 worth $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Bank of America Corp DE purchased a new position in PepsiCo during the 2nd quarter valued at about $2,755,509,000. Legal & General Group Plc bought a new stake in shares of PepsiCo during the second quarter valued at about $1,200,274,000. Corient Private Wealth LP bought a new stake in shares of PepsiCo during the second quarter valued at about $297,116,000. Finally, Canada Pension Plan Investment Board purchased a new stake in shares of PepsiCo in the second quarter worth about $487,558,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is refining its price-pack strategy to offer more affordable products and support sales volumes as consumers become more price-sensitive. The approach could help stabilize North American demand, although its success will depend on whether volume gains offset lower pricing. PepsiCo Sharpens Price-Pack Strategy: Can Affordability Pay Off?
• Positive Sentiment: A Delhi High Court ruling reportedly allows PepsiCo and partners to sell existing beverage inventory using the “energy drink” label in India, providing a partial commercial reprieve. However, the companies reportedly cannot manufacture additional products under that designation. Delhi High Court Energy Drink Label Ruling
• Neutral Sentiment: PepsiCo’s earnings release is the main near-term catalyst. Options traders are pricing in an approximately 3.75% post-earnings move, while analysts remain divided on whether the low valuation reflects an attractive turnaround opportunity or continuing fundamental deterioration. PepsiCo Q3 Earnings Options Outlook
• Negative Sentiment: RBC lowered its price target to $150 from $161 and maintained a sector-perform rating, citing limited top-line upside, persistent consumer and macroeconomic pressure, and rising freight and logistics costs that could weigh on margins into 2027. RBC PepsiCo Q3 Preview
• Negative Sentiment: Commentary ahead of earnings highlights pressure at Frito-Lay and PepsiCo’s broader snack and beverage businesses, including competition from newer brands, changing consumer preferences and the potential impact of GLP-1 weight-loss drugs. This has widened the perceived performance gap with Coca-Cola. Jim Cramer Discusses PepsiCo and Coca-Cola
• Negative Sentiment: PepsiCo recalled roughly 122,000 cases of Gatorade sold across multiple states because of undeclared dyes. The financial impact may be limited, but the recall creates added regulatory, brand and execution risk. PepsiCo 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.