PepsiCo, Inc. (NASDAQ:PEP) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts rate PepsiCo “Hold” on average: Of 20 firms, 12 recommend holding, seven recommend buying and one recommends selling. The average 12-month price target is $157.90, compared with a recent share price of $143.48.
• PepsiCo exceeded quarterly expectations: The company reported $2.20 in earnings per share and $24.18 billion in revenue, up 6.4% year over year. Full-year 2026 guidance is 8.55–8.71 EPS.
• The company declared a $1.48 quarterly dividend: That equates to $5.92 annually and a 4.1% yield, with a 77.59% payout ratio; institutional investors own 73.07% of the stock.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) have been given an average recommendation of "Hold" by the twenty research firms that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, twelve have issued a hold recommendation and seven have given a buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $157.90.

PEP has been the topic of several recent research reports. Barclays lifted their target price on shares of PepsiCo from $138.00 to $142.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 21st. Jefferies Financial Group dropped their price target on shares of PepsiCo from $162.00 to $152.00 and set a "hold" rating for the company in a research report on Friday, July 10th. Piper Sandler set a $176.00 price target on shares of PepsiCo in a research note on Thursday, July 9th. Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a report on Friday, July 10th. Finally, JPMorgan Chase & Co. lowered their price objective on PepsiCo from $178.00 to $170.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 1st.

PepsiCo Stock Performance

Shares of NASDAQ PEP opened at $143.48 on Monday. The business has a fifty day simple moving average of $140.02 and a 200 day simple moving average of $150.26. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The firm has a market capitalization of $195.83 billion, a price-to-earnings ratio of 18.80, a PEG ratio of 3.15 and a beta of 0.35. PepsiCo has a one year low of $133.73 and a one year 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 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 firm had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter in the previous year, the company earned $0.92 earnings per share. The business's 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 expect that PepsiCo will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date is Friday, September 4th. PepsiCo's dividend payout ratio is 77.59%.

Insider Transactions at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the 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 transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.12% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PepsiCo

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of PepsiCo by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after buying an additional 1,612,652 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of PepsiCo by 2.1% in the 2nd quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock worth $16,015,363,000 after acquiring an additional 2,440,377 shares in the last quarter. State Street Corp grew its position in PepsiCo by 1.8% during the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares during the last quarter. Auto Owners Insurance Co increased its holdings 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 valued at $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in PepsiCo by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock valued at $4,814,835,000 after purchasing an additional 360,936 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

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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