PepsiCo (NASDAQ:PEP) Shares Climb 3.8% – Here’s What Happened

PepsiCo, Inc. (NASDAQ:PEP) shares shot up 3.8% on Wednesday. The stock traded as high as $143.96 and last traded at $142.42. Approximately 12,075,294 shares were traded during trading, an increase of 47% from the average session volume of 8,204,689 shares. The stock had previously closed at $137.27.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed its beverage partnership with KFC across eight international markets. The deal extends a longstanding relationship and could support sales and distribution as KFC expands internationally. PepsiCo Secures Renewal Across Select KFC International Markets
• Neutral Sentiment: A valuation analysis argues PEP could be undervalued, citing the KFC renewal and recent share performance. That is an analyst view, not a change to the company’s financial results. PepsiCo (PEP) Could Be 29% Undervalued Following Its KFC Deal Renewal
• Negative Sentiment: PepsiCo lowered its 2026 EPS growth outlook as North American margin pressures persist. Strong international growth and productivity savings may help offset the weakness, but the guidance cut is a potential drag on investor expectations. PepsiCo Lowers 2026 EPS Outlook as North America Pressures Margins
• Negative Sentiment: PepsiCo’s CEO reportedly sold shares after the guidance reduction, which could add to investor concerns about the weaker outlook. These 3 Underperforming Stocks Are Seeing Notable CEO Insider Trades
• Negative Sentiment: India’s food regulator has challenged PepsiCo’s energy-drink labeling, alleging the branding could mislead consumers. The dispute introduces potential regulatory and reputational risk, though the articles do not specify any financial penalty. PepsiCo, Monster face FSSAI pushback over energy drink labelling

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. TD Cowen dropped their price objective on shares of PepsiCo from $145.00 to $133.00 and set a “hold” rating on the stock in a report on Monday, September 28th. UBS Group dropped their price target on PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday, October 2nd. Jefferies Financial Group reiterated a “hold” rating on shares of PepsiCo in a report on Thursday, October 8th. Freedom Broker upgraded PepsiCo from a “hold” rating to a “strong-buy” rating in a report on Saturday, October 10th. Finally, Barclays lowered their target price on PepsiCo from $133.00 to $126.00 and set an “equal weight” rating on the stock in a research report on Monday, October 12th. One research 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 stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $143.28.

PepsiCo Stock Performance

The firm has a market cap of $192.61 billion, a PE ratio of 17.76, a PEG ratio of 4.24 and a beta of 0.31. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. The company has a 50-day simple moving average of $133.33 and a two-hundred day simple moving average of $145.75.

PepsiCo (NASDAQ:PEP) last released its 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 during the quarter, compared to the consensus estimate of $24.95 billion. During the same period in the prior year, the firm earned $2.29 EPS. The company’s revenue was up 5.6% compared to the same quarter last year. As a group, equities research analysts forecast that PepsiCo, Inc. will post 8.42 earnings per share for the current year.

Insider Transactions at PepsiCo

In other news, CEO Ramon Laguarta sold 30,000 shares of the stock in a transaction on Wednesday, October 21st. The shares were 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 $66,435,988.85. This represents a 5.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Robert Pohlad purchased 184,646 shares of the business’s stock in a transaction on Wednesday, October 14th. The shares were acquired at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the transaction, the director owned 433,009 shares of the company’s stock, valued at approximately $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.12% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. raised its holdings in PepsiCo by 2.1% during the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock valued at $16,015,363,000 after buying an additional 2,440,377 shares during the last quarter. State Street Corp increased its stake 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 purchasing an additional 987,582 shares in the last quarter. Bank of America Corp DE raised its holdings 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 worth $3,305,146,000 after acquiring an additional 133,325 shares during the last quarter. Amundi boosted its position in shares of PepsiCo by 16.8% during the first quarter. Amundi now owns 11,444,671 shares of the company’s stock valued at $1,777,243,000 after buying an additional 1,647,506 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in PepsiCo by 4.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company’s stock worth $1,600,114,000 after purchasing an additional 549,336 shares during the period. Institutional investors own 73.07% of the company’s stock.

PepsiCo Company Profile

PepsiCo, Inc is a global food and beverage company that develops, manufactures, markets and distributes a broad range of products. Its portfolio includes snacks such as Lay’s, Doritos and Cheetos, as well as beverages including Pepsi, Gatorade and Mountain Dew.

The company was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. Its products are sold in more than 200 countries and territories through retail, food-service and other distribution channels.

PepsiCo is headquartered in Purchase, New York.