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

Key Points

• Analysts have a consensus “Hold” rating on PepsiCo, with 12 holds, seven buys and one sell among 20 firms. The average 12-month price target is $157.90, compared with shares trading near $143.50.
• PepsiCo slightly exceeded quarterly expectations, reporting $2.20 in adjusted earnings per share and $24.18 billion in revenue, up 6.4% year over year. The company also declared a $1.48 quarterly dividend, equivalent to a 4.1% annualized yield.
• Investors remain concerned about margin pressure, elevated debt and softer North American demand, as consumers resist price increases. International volume growth, innovation and productivity initiatives may help offset these challenges.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) have been assigned an average rating of "Hold" from the twenty research firms that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation and seven have assigned a buy recommendation to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $157.90.

A number of research firms recently commented on PEP. HSBC increased their target price on PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Wells Fargo & Company dropped their price target on PepsiCo from $150.00 to $140.00 and set an "equal weight" rating for the company in a research note on Friday, July 10th. Royal Bank Of Canada reduced their price objective on PepsiCo from $163.00 to $161.00 and set a "sector perform" rating on the stock in a research report on Friday, July 10th. Jefferies Financial Group decreased their price objective on PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Global volume growth, international brands and product innovation are supporting PepsiCo’s results as the company looks to offset softer North American demand. Productivity initiatives and brand investments could also help stabilize profitability. PepsiCo Rides Global Volume Growth as North American Demand Slows
• Positive Sentiment: PepsiCo’s lower valuation and dividend yield above 4% provide potential support for income-focused investors. Its recent quarterly performance also modestly exceeded estimates, with earnings of $2.20 per share and revenue of $24.18 billion. Is PepsiCo Stock Attractive After Q2 Earnings and Margin Pressure
• Neutral Sentiment: PepsiCo appointed Tanvi Swami as marketing director for Pepsi, 7UP and Mirinda. The move may support brand strategy, although no immediate financial impact was provided. PepsiCo appoints Tanvi Swami as Marketing Director
• Neutral Sentiment: An executive sold 2,900 shares worth approximately $405,000, reducing his position by 3.73%. The transaction was disclosed as required in an SEC filing but was relatively small compared with his remaining holdings. SEC insider transaction filing
• Negative Sentiment: Consumer-staples estimates are being pressured as shoppers increasingly resist price increases. Procter & Gamble’s earnings miss and cautious outlook reinforce concerns that PepsiCo may have limited pricing power, particularly in its large North American snack business. Q3 Estimates Increase for Tech and Finance, Fall for Consumer Staples
• Negative Sentiment: Analysts continue to flag margin pressure, elevated debt and weaker estimates. A lawsuit alleging workplace harassment and retaliation also creates potential reputational risk, although the report does not indicate a quantified financial impact. PepsiCo workplace harassment lawsuit report

Insider Buying and Selling at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the company'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 completion of the sale, the executive vice president owned 74,825 shares of the company's stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.12% of the company's stock.

Hedge Funds Weigh In On PepsiCo

Large investors have recently added to or reduced their stakes in the business. Evergreen Advisors LLC purchased a new position in shares of PepsiCo in the first quarter worth about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in PepsiCo during the 4th quarter valued at about $26,000. Swiss RE Ltd. bought a new position in PepsiCo during the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV purchased a new position in PepsiCo in the 4th quarter worth approximately $29,000. Finally, Atlatl Advisers LLC purchased a new position in PepsiCo in the 2nd quarter worth approximately $31,000. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Trading Up 0.4%

Shares of PEP opened at $143.50 on Thursday. The firm's 50 day simple moving average is $141.66 and its 200 day simple moving average is $151.08. The company has a market capitalization of $195.86 billion, a P/E ratio of 18.81, a P/E/G ratio of 3.14 and a beta of 0.36. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. PepsiCo has a 1-year low of $133.73 and a 1-year high of $171.48.

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

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be paid a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. PepsiCo's dividend payout ratio (DPR) is 77.59%.

About PepsiCo

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.

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