PepsiCo (NASDAQ:PEP) Sets New 12-Month Low After Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP) shares reached a new 52-week low on Thursday after Evercore lowered their price target on the stock from $150.00 to $135.00. The company traded as low as $126.12 and last traded at $126.6390, with a volume of 457252 shares trading hands. The stock had previously closed at $126.72.

A number of other equities research analysts have also recently commented on PEP. JPMorgan Chase & Co. cut shares of PepsiCo from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $170.00 to $138.00 in a report on Tuesday. Royal Bank Of Canada reduced their price objective on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a report on Friday, July 10th. Barclays decreased their target price on PepsiCo from $142.00 to $133.00 and set an “equal weight” rating for the company in a research report on Wednesday. UBS Group set a $159.00 price target on PepsiCo in a research report on Thursday, July 9th. Finally, Jefferies Financial Group set a $138.00 price target on PepsiCo in a research note on Tuesday. 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. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $151.70.

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.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo remains potentially attractive to value and defensive investors after becoming deeply oversold, with its relative strength index near 30. The company also continues to offer income appeal after extending its dividend-growth streak to 54 consecutive years, with an annualized payout of approximately $5.92 per share. Top 3 Risk Off Stocks You’ll Regret Missing This Month
• Positive Sentiment: Management is emphasizing hydration, zero-sugar beverages, functional products and better-for-you foods, while using chefs and other innovation efforts to improve product appeal. PepsiCo also added Johnson & Johnson CEO Joaquin Duato to its board, bringing healthcare and international consumer-brand experience as the company expands its health-oriented portfolio. Can Innovation Help PepsiCo Outpace Industry Headwinds?
• Neutral Sentiment: PepsiCo is scheduled to report earnings Thursday. The report will be closely watched for evidence that pricing, innovation and cost controls are stabilizing its North American operations. PepsiCo Set to Announce Earnings on Thursday
• Neutral Sentiment: A new multiyear food-and-beverage partnership with Live Nation could support brand visibility and consumer engagement, although the near-term financial impact was not specified. PepsiCo and Live Nation Announce New Multi-Year Food and Beverage Partnership
• Negative Sentiment: JPMorgan downgraded PepsiCo to Neutral/Hold, citing persistent North American weakness, a stalled recovery, rising costs and pressure on growth estimates. This follows additional bearish analyst actions, including lower price targets from JPMorgan, Evercore and Barclays. PepsiCo’s North America Problems Aren’t Going Away Yet
• Negative Sentiment: Investors remain concerned that price increases after earlier discounts could further weaken demand for PepsiCo’s chips and beverages. Commentary has also raised questions about dividend sustainability if profits and operating cash flow continue to deteriorate. PepsiCo Walks a Tightrope

Hedge Funds Weigh In On PepsiCo

Hedge funds have recently made changes to their positions in the stock. Evergreen Advisors LLC purchased a new position in PepsiCo during the 1st quarter valued at about $25,000. Montgomery Financial Services LLC purchased a new stake in shares of PepsiCo in the second quarter worth about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of PepsiCo in the fourth quarter valued at approximately $26,000. Atlatl Advisers LLC bought a new position in shares of PepsiCo in the second quarter valued at approximately $31,000. Finally, Osterweis Capital Management Inc. purchased a new position in PepsiCo during the second quarter valued at approximately $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Up 0.4%

The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The firm has a market cap of $173.66 billion, a P/E ratio of 16.68, a price-to-earnings-growth ratio of 2.92 and a beta of 0.35. The stock’s fifty day moving average is $137.41 and its two-hundred day moving average is $144.41.

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

PepsiCo Announces Dividend

The firm also recently disclosed 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. The ex-dividend date of this dividend was Friday, September 4th. This represents a $5.92 annualized dividend and a yield of 4.7%. PepsiCo’s dividend payout ratio (DPR) 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.