PepsiCo, Inc. (NASDAQ:PEP) Stock Rated "Hold" by Wall Street Brokerages

Key Points

• PepsiCo has a consensus “Hold” rating from 20 analysts, with 14 holds, five buys and one sell; the average 12-month price target is $145.50, though several brokerages recently reduced their targets.
• The company beat quarterly expectations, reporting adjusted EPS of $2.34 versus a $2.29 estimate and revenue of $25.27 billion, up 5.6% year over year. Analysts project about $8.40 in full-year EPS.
• PepsiCo pays a quarterly dividend of $1.48, equivalent to a 4.7% yield, but shares have declined near their 52-week low amid pressure in North American beverages, inflation, higher costs and margin concerns.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) has been given a consensus rating of "Hold" by the twenty research firms that are currently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation and five have given a buy recommendation to the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is $145.50.

Several equities analysts have weighed in on the company. TD Cowen dropped their price objective on PepsiCo from $145.00 to $133.00 and set a "hold" rating on the stock in a research note on Monday, September 28th. Weiss Ratings downgraded shares of PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, September 24th. JPMorgan Chase & Co. reduced their target price on shares of PepsiCo from $138.00 to $137.00 and set a "neutral" rating for the company in a research note on Friday. Citigroup reiterated a "buy" rating on shares of PepsiCo in a report on Friday. Finally, Wells Fargo & Company dropped their price target on shares of PepsiCo from $140.00 to $135.00 and set an "equal weight" rating on the stock in a research report on Monday, October 5th.

PepsiCo Price Performance

PEP stock opened at $126.68 on Tuesday. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. The business has a 50-day simple moving average of $135.22 and a two-hundred day simple moving average of $142.83. The company has a market capitalization of $172.63 billion, a P/E ratio of 15.91, a price-to-earnings-growth ratio of 2.92 and a beta of 0.35. PepsiCo has a 52-week low of $123.47 and a 52-week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, October 8th. The company reported $2.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.05. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The company had revenue of $25.27 billion for the quarter, compared to analysts' expectations of $24.95 billion. During the same quarter in the previous year, the firm earned $2.29 earnings per share. PepsiCo's quarterly revenue was up 5.6% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. Research analysts expect that PepsiCo will post 8.40 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were given a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend was Friday, September 4th. PepsiCo's dividend payout ratio is presently 74.37%.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s third-quarter revenue increased 5.6% year over year to approximately $25.3 billion, while adjusted EPS exceeded analyst expectations. The company also raised prices on some products, which could help offset inflation and cost pressures. PepsiCo Q3 revenue and outlook
• Positive Sentiment: PepsiCo is expanding functional beverages, protein-rich snacks and zero-sugar products to capture demand for healthier and wellness-oriented offerings. Its Poppi acquisition is also being positioned as part of a soft-drink turnaround strategy. PepsiCo functional portfolio
• Positive Sentiment: Some investors view PEP as inexpensive after its prolonged decline, citing a dividend yield near 4.7%, strong brands and potentially attractive long-term cash-flow value. PepsiCo also received an A+ profitability grade in one screening report. PepsiCo dividend valuation
• Neutral Sentiment: PepsiCo raised roughly €999 million through euro-denominated senior notes. The financing improves liquidity but increases debt and interest obligations as the company faces pressure to improve margins. PepsiCo euro bond offering
• Neutral Sentiment: CEO Ramon Laguarta said PepsiCo does not plan to separate its snacks and beverage businesses, maintaining the company’s integrated strategy despite activist investor pressure.
• Negative Sentiment: Barclays lowered its PEP price target from $133 to $126 and assigned an “equal weight” rating, implying limited near-term upside. Goldman Sachs and other analysts also reduced their targets amid inflation, cost pressures and concerns about the earnings outlook. Goldman lowers PepsiCo target
• Negative Sentiment: PepsiCo’s reduced forecast and ongoing pressure in North American beverages have weakened investor confidence. Cautious consumers, higher costs and the need to improve margins remain key risks.
• Negative Sentiment: An Indian court refused relief in a labeling dispute involving Sting, preventing PepsiCo from labeling new bottles as an “energy drink,” creating a regulatory and branding headwind in that market. PepsiCo Sting labeling case

Insider Transactions at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the 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 completion of the sale, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On PepsiCo

Several institutional investors have recently modified their holdings of PEP. Onyx Bridge Wealth Group LLC increased its stake in PepsiCo by 2.5% during the 1st quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company's stock valued at $415,000 after purchasing an additional 66 shares in the last quarter. Wilkerson Advisory Group LLC raised its holdings in PepsiCo by 3.3% in the first quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock worth $317,000 after buying an additional 66 shares during the last quarter. Richards Merrill & Peterson Inc. lifted its stake in shares of PepsiCo by 3.6% in the first quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock worth $301,000 after buying an additional 67 shares in the last quarter. Partners Wealth Management LLC lifted its stake in shares of PepsiCo by 3.5% in the first quarter. Partners Wealth Management LLC now owns 1,998 shares of the company's stock worth $310,000 after buying an additional 68 shares in the last quarter. Finally, Pittenger & Anderson Inc. grew its holdings in shares of PepsiCo by 0.3% during the first quarter. Pittenger & Anderson Inc. now owns 24,895 shares of the company's stock valued at $3,866,000 after buying an additional 69 shares during the last quarter. 73.07% of the stock is owned by institutional investors.

About PepsiCo

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.

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