PepsiCo, Inc. (NASDAQ:PEP) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts broadly rate PepsiCo “Hold”: Of 20 covering firms, 12 recommend holding, seven recommend buying and one recommends selling. The average 12-month price target is $157.90, versus a recent price of $133.66.
• Operating performance remains solid, but concerns persist: PepsiCo modestly beat quarterly EPS and revenue estimates, with revenue up 6.4% year over year, while analysts cite softer North American demand, higher costs and margin pressure. The stock is near its 52-week low and below both its 50-day and 200-day moving averages.
• The 4.4% dividend supports PepsiCo’s defensive appeal: The company declared a quarterly dividend of $1.48 per share, or $5.92 annualized. Institutional investors own 73.07% of the stock, although longer-term risks include changing consumer preferences, potential GLP-1-related snack demand pressure and a Maryland facility closure affecting 143 jobs.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) have been given a consensus recommendation of "Hold" by the twenty ratings firms that are presently covering the stock, 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 twelve-month price target among brokers that have issued a report on the stock in the last year is $157.90.

PEP has been the subject of several recent analyst reports. Citigroup downgraded shares of PepsiCo from a "buy" rating to a "neutral" rating and cut their target price for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on PepsiCo in a research note on Friday, July 10th. TD Cowen reiterated a "hold" rating on shares of PepsiCo in a research note on Friday, August 28th. Wells Fargo & Company decreased their target price on PepsiCo from $150.00 to $140.00 and set an "equal weight" rating on the stock in a report on Friday, July 10th. Finally, Royal Bank Of Canada cut their price target on PepsiCo from $163.00 to $161.00 and set a "sector perform" rating for the company in a report on Friday, July 10th.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo appointed Johnson & Johnson Chairman and CEO Joaquin Duato as an independent director effective December 1. His experience in global healthcare and consumer-facing businesses could strengthen PepsiCo’s board and oversight. PepsiCo Elects Joaquin Duato to Board of Directors
• Positive Sentiment: A new nationwide partnership with The Great Greek Mediterranean Grill makes PepsiCo the restaurant chain’s official soft-drink provider through 2026, expanding distribution and foodservice visibility. The Great Greek Mediterranean Grill Announces Partnership with PepsiCo
• Positive Sentiment: PepsiCo inaugurated a roughly ₹778-crore foods manufacturing facility in Assam, supporting long-term production capacity and growth in India. PepsiCo India inaugurates foods manufacturing plant in Assam
• Positive Sentiment: Analysts continue to highlight PepsiCo as a defensive dividend payer with a discounted valuation, recurring cash generation and potential appeal during inflation and interest-rate uncertainty. Defensive Dividend Stocks
• Neutral Sentiment: PepsiCo launched its first corporate brand campaign to connect its corporate identity with brands such as Lay’s, Doritos and Pepsi. The company clarified that it is not changing its name; the campaign is primarily a marketing and brand-awareness effort. PepsiCo’s First Corporate Brand Campaign
• Negative Sentiment: PepsiCo will end manufacturing and warehouse operations at its Maryland bottling facility, eliminating 143 jobs. Management cited changing consumer preferences and technology, reinforcing concerns about portfolio and operating adjustments. PepsiCo to End Maryland Manufacturing Operations
• Negative Sentiment: A Brand Finance report estimates GLP-1 weight-loss drugs could put $73 billion in global food value at risk, with PepsiCo’s Lay’s identified as the most exposed brand. This raises longer-term demand concerns for snack foods. GLP-1 Drugs Put Food Value at Risk
• Negative Sentiment: Recent analysis flags softer North American demand, higher costs and margin pressure. PepsiCo’s low valuation may reflect investor skepticism that earnings growth will accelerate. PepsiCo Trades Below 50-Day SMA

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the company's stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the transaction, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On PepsiCo

A number of institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its holdings in shares of PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock worth $16,015,363,000 after buying an additional 2,440,377 shares during the period. Auto Owners Insurance Co grew its position 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 acquiring an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC grew its position in PepsiCo by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares during the last quarter. Bank of America Corp DE increased its stake 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 purchasing an additional 133,325 shares during the period. Finally, Norges Bank bought a new stake in PepsiCo in the fourth quarter valued at approximately $3,018,813,000. Institutional investors own 73.07% of the company's stock.

PepsiCo Stock Performance

PEP opened at $133.66 on Friday. 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 business's 50-day simple moving average is $138.77 and its 200 day simple moving average is $146.49. The firm has a market capitalization of $182.43 billion, a PE ratio of 17.52, a PEG ratio of 2.83 and a beta of 0.35. PepsiCo has a 52-week low of $132.93 and a 52-week high of $171.48.

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

PepsiCo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be paid a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date is Friday, September 4th. PepsiCo's dividend payout ratio (DPR) is currently 77.59%.

About PepsiCo

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

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