PepsiCo, Inc. (NASDAQ:PEP) Receives Average Rating of “Hold” from Analysts

Shares of PepsiCo, Inc. (NASDAQ:PEP) have been assigned a consensus recommendation of “Hold” from the twenty analysts that are covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, twelve have assigned a hold rating and seven have given a buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $157.90.

Several equities research analysts have recently issued reports on the stock. TD Cowen reissued a “hold” rating on shares of PepsiCo in a research report on Friday. Wells Fargo & Company reduced their target price on shares of PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. BNP Paribas Exane lowered their target price on PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a report on Wednesday, July 8th. Piper Sandler set a $176.00 price target on PepsiCo in a research note on Thursday, July 9th. Finally, UBS Group set a $159.00 price target on PepsiCo in a report on Thursday, July 9th.

PepsiCo Price Performance

Shares of PEP opened at $141.07 on Monday. The stock has a 50 day simple moving average of $139.86 and a 200 day simple moving average of $149.51. PepsiCo has a 52-week low of $133.73 and a 52-week high of $171.48. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The firm has a market capitalization of $192.55 billion, a PE ratio of 18.49, a P/E/G ratio of 3.07 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same period last year, the company posted $0.92 EPS. The business’s quarterly revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts predict that PepsiCo will post 8.57 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo’s dividend payout ratio is 77.59%.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds
• Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend
• Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks
• Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500
• Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims
• Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice?

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction 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 sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.12% of the stock is owned by company insiders.

Hedge Funds Weigh In On PepsiCo

A number of large investors have recently modified their holdings of the business. California State Teachers Retirement System boosted its position in PepsiCo by 13,502.8% during the second quarter. California State Teachers Retirement System now owns 285,677,210 shares of the company’s stock valued at $38,680,694,000 after purchasing an additional 283,577,075 shares during the last quarter. Auto Owners Insurance Co raised its stake in shares of 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. Norges Bank acquired a new stake in shares of PepsiCo in the 4th quarter valued at approximately $3,018,813,000. Bank of America Corp DE acquired a new stake in shares of PepsiCo in the 2nd quarter valued at approximately $2,755,509,000. Finally, Legal & General Group Plc bought a new position in shares of PepsiCo in the second quarter valued at $1,200,274,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.