PepsiCo (NASDAQ:PEP) Shares Up 2.7% – Still a Buy?

PepsiCo, Inc. (NASDAQ:PEP)’s stock price shot up 2.7% on Friday. The stock traded as high as $138.59 and last traded at $137.34. Approximately 19,394,277 shares traded hands during mid-day trading, an increase of 137% from the average daily volume of 8,182,100 shares. The stock had previously closed at $133.79.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Quarterly results exceeded expectations. Third-quarter revenue rose 5.6% year over year to $25.27 billion, topping consensus, while core earnings per share of $2.34 also beat estimates. Organic revenue growth accelerated to 3.1%. Why PepsiCo (PEP) Stock Is Up Today
• Positive Sentiment: Operating trends showed improvement. PepsiCo reported organic volume growth across global beverages and convenient foods, broad strength in international markets, and sequential improvement in North American foods. Its updated outlook calls for approximately 6% net revenue growth and about 3% organic revenue growth in 2026. Why PepsiCo (PEP) Stock Is Up Today
• Positive Sentiment: Income appeal remains a supporting factor. Analysts and investment commentary continue to highlight PepsiCo’s dividend, which offers a yield above 4%, as well as the defensive nature of its combined beverage-and-snacks portfolio. Why Is PepsiCo Stock Falling, and Is It a Buying Opportunity?
• Neutral Sentiment: Valuation and positioning could attract buyers. PEP trades well below its 52-week high, and the median analyst price target cited is $168 versus a recent share price near $137. However, institutional ownership data showed both significant additions and reductions, indicating mixed conviction.
• Negative Sentiment: Profit guidance was reduced. PepsiCo cut its 2026 core constant-currency EPS growth forecast to 1%–2%, down from the low end of its prior 4%–6% range. The downgrade reflects continuing pressure on margins and profitability despite firmer revenue expectations. PepsiCo stock outlook cut as North American reset deepens
• Negative Sentiment: North America remains the key risk. PepsiCo has cut prices by as much as 15% to win back price-sensitive consumers, raising questions about pricing power and future margins. The stock also remains below its 200-day moving average, reflecting investors’ caution about the recovery.

Analyst Ratings Changes

Several research firms have recently issued reports on PEP. Evercore decreased their target price on PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. Sanford C. Bernstein reiterated a “market perform” rating on shares of PepsiCo in a research report on Friday, October 9th. Jefferies Financial Group reissued a “hold” rating on shares of PepsiCo in a research note on Thursday, October 8th. UBS Group decreased their price objective on shares of PepsiCo from $159.00 to $145.00 and set a “buy” rating for the company in a report on Friday, October 2nd. Finally, Citigroup reaffirmed a “buy” rating on shares of PepsiCo 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 issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $143.28.

PepsiCo Trading Up 2.7%

The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90. The firm has a market capitalization of $187.16 billion, a P/E ratio of 17.25, a PEG ratio of 4.10 and a beta of 0.35. The business has a 50 day moving average of $133.49 and a 200-day moving average of $145.87.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, beating analysts’ consensus estimates of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The firm had revenue of $25.27 billion for the quarter, compared to analyst estimates of $24.95 billion. During the same quarter in the previous year, the firm posted $2.29 earnings per share. The business’s revenue was up 5.6% on a year-over-year basis. Analysts anticipate that PepsiCo, Inc. will post 8.39 EPS for the current fiscal year.

Insider Buying and Selling at PepsiCo

In other news, Director Robert C. Pohlad bought 184,646 shares of the stock in a transaction on Wednesday, October 14th. The stock was purchased at an average price 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 approximately $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Ramon Laguarta sold 30,000 shares of the stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total value of $4,053,900.00. Following the transaction, the chief executive officer owned 491,645 shares of the company’s stock, valued at approximately $66,435,988.85. This trade represents a 5.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.12% of the company’s stock.

Institutional Trading of PepsiCo

A number of institutional investors have recently modified their holdings of PEP. Evergreen Advisors LLC acquired a new position in PepsiCo during the first quarter valued at approximately $25,000. Montgomery Financial Services LLC bought a new stake in PepsiCo during the second quarter worth $25,000. Next Level Wealth Planning LLC acquired a new stake in shares of PepsiCo in the 3rd quarter valued at $26,000. Atlatl Advisers LLC acquired a new stake in shares of PepsiCo in the 2nd quarter valued at $31,000. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of PepsiCo in the 2nd quarter valued at $31,000. 73.07% of the stock is currently owned by institutional investors.

About PepsiCo

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.