PepsiCo Sees Unusually Large Options Volume (NASDAQ:PEP)

Key Points

• PepsiCo saw unusually heavy options activity: Investors purchased 55,189 call options, 71% above the typical daily volume of 32,328 contracts.
• Shares faced operational and income concerns: The stock fell to $135.01 as soft North American beverage volumes, a Tennessee bottling-plant closure, lower analyst estimates and questions about dividend coverage weighed on sentiment.
• There are some offsetting growth signals: PepsiCo extended its Taco Bell beverage partnership through 2036, reported quarterly revenue and earnings above expectations, and is pursuing product initiatives in snacks, protein bars and international Quaker products.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) was the target of unusually large options trading activity on Friday. Stock investors bought 55,189 call options on the company. This represents an increase of 71% compared to the typical daily volume of 32,328 call options.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Taco Bell partnership extended through 2036. PepsiCo will remain Taco Bell’s beverage partner in the U.S. and several international markets, preserving distribution for brands including Mountain Dew Baja Blast and creating opportunities for new crafted, functional and energy drinks. The agreement is especially supportive after KFC, another Yum Brands chain, selected Coca-Cola in the U.S. Pepsi renews contract with Taco Bell
• Positive Sentiment: New snack and beverage initiatives could support longer-term growth. PepsiCo is expanding Quaker products in India and launching Good Warrior protein bars, while its multipack snack business and product innovation may help improve North American volumes despite current margin pressure. Can PepsiCo's Multipack Business Support Snack Growth?
• Neutral Sentiment: Analyst estimates moved lower but remain near consensus. Erste Group reduced its FY2026 EPS forecast to $8.39 from $8.55 and its FY2027 estimate to $8.60 from $8.97. The FY2026 projection is broadly aligned with the $8.41 consensus, suggesting limited near-term earnings momentum but no major consensus reset. PepsiCo analyst estimates
• Negative Sentiment: Soft beverage volumes and restructuring concerns are weighing on sentiment. PepsiCo is closing its Knoxville, Tennessee bottling plant, affecting more than 120 roles, as it responds to pressure in North American beverages. The closure highlights efforts to adjust capacity amid weaker demand.
• Negative Sentiment: Dividend safety is under scrutiny. With PepsiCo’s stock well below its peak and its earnings outlook reduced, investors are examining whether free cash flow sufficiently covers the company’s multibillion-dollar dividend commitment. A thin cash payout cushion could limit the appeal of the roughly 4% yield and increase concerns about future dividend growth. Is PepsiCo's Dividend Still Safe?

PepsiCo Price Performance

Shares of PEP traded down $3.82 during midday trading on Friday, hitting $135.01. The company's stock had a trading volume of 2,564,203 shares, compared to its average volume of 8,144,974. PepsiCo has a one year low of $123.47 and a one year high of $171.48. The stock has a market capitalization of $183.99 billion, a price-to-earnings ratio of 16.96, a price-to-earnings-growth ratio of 4.01 and a beta of 0.35. 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's fifty day simple moving average is $134.15 and its two-hundred day simple moving average is $141.57.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 EPS for the quarter, beating analysts' consensus estimates of $2.29 by $0.05. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. 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 company posted $2.29 EPS. The business's revenue was up 5.6% on a year-over-year basis. As a group, equities analysts expect that PepsiCo will post 8.41 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

PEP has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $132.00 price objective on shares of PepsiCo in a research report on Friday, October 9th. Sanford C. Bernstein reiterated a "market perform" rating on shares of PepsiCo in a research note on Friday, October 9th. Weiss Ratings downgraded PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, September 24th. Evercore cut their price target on PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Finally, TD Cowen reduced their price target on shares of PepsiCo from $145.00 to $133.00 and set a "hold" rating on the stock in a research report on Monday, September 28th. 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $143.28.

Insiders Place Their Bets

In other news, Director Robert C. Pohlad bought 184,646 shares of PepsiCo stock in a transaction on Wednesday, October 14th. The stock was acquired at an average cost of $128.28 per share, for a total transaction of $23,686,388.88. Following the completion of the acquisition, the director owned 433,009 shares of the company's stock, valued at $55,546,394.52. This trade represents a 74.35% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP David Flavell sold 2,900 shares of PepsiCo stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.12% of the company's stock.

Institutional Trading of PepsiCo

Several large investors have recently added to or reduced their stakes in PEP. Strengthening Families & Communities LLC lifted its stake in shares of PepsiCo by 15.5% in the third quarter. Strengthening Families & Communities LLC now owns 10,893 shares of the company's stock worth $1,380,000 after buying an additional 1,461 shares in the last quarter. Stillwater Wealth Management Group acquired a new position in shares of PepsiCo in the third quarter valued at about $201,000. Sawyer & Company Inc purchased a new position in PepsiCo during the third quarter valued at approximately $188,000. Bell Bank lifted its position in shares of PepsiCo by 23.3% during the 3rd quarter. Bell Bank now owns 83,997 shares of the company's stock valued at $10,644,000 after buying an additional 15,858 shares in the last quarter. Finally, Bank Pictet & Cie Europe AG lifted its position in shares of PepsiCo by 12.7% during the 3rd quarter. Bank Pictet & Cie Europe AG now owns 59,333 shares of the company's stock worth $7,519,000 after purchasing an additional 6,676 shares during the last quarter. Institutional investors own 73.07% of the company's stock.

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.

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