PepsiCo Sees Unusually Large Options Volume (NASDAQ:PEP)

Key Points

• PepsiCo saw unusual options activity on Friday, with 45,880 call options traded — about 70% above its normal volume. That suggests elevated investor interest in the stock.
• Analyst sentiment is mixed but earnings estimates are trending slightly lower. Zacks raised its Q4 2026 EPS view, but trimmed several FY2026-FY2028 forecasts, indicating some near-term caution despite longer-term profitability expectations.
• The stock rose 0.8% to $136.03 and continues to offer a sizable dividend, with a quarterly payout of $1.48 and an annualized yield of 4.4%. PepsiCo also recently beat quarterly EPS and revenue expectations, though its shares remain below key moving averages.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) was the target of some unusual options trading on Friday. Stock investors purchased 45,880 call options on the stock. This represents an increase of 70% compared to the typical volume of 26,922 call options.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Zacks Research raised its Q4 2026 EPS estimate for PepsiCo to $2.43 from $2.35, implying slightly better near-term profitability than previously expected.
• Positive Sentiment: Despite the revisions, Zacks’ estimates for FY2027 and FY2028 still remain above the current full-year consensus of $8.58 per share, which may indicate long-term earnings potential remains intact.
• Neutral Sentiment: PepsiCo announced plans to cease warehouse operations at its Oklahoma production site, a cost/operations move that may improve efficiency but also signals restructuring. PepsiCo to cease warehouse operations at Oklahoma production site
• Neutral Sentiment: Reports that Quaker Oats is planning a major expansion at its North Texas facility could support future capacity and brand investment, but the market impact is still uncertain. PepsiCo's Quaker Oats plans major expansion at its North Texas facility
• Negative Sentiment: Zacks Research lowered PepsiCo’s FY2026 EPS estimate to $8.56 from $8.59, slightly below the current consensus, signaling near-term earnings expectations are coming down.
• Negative Sentiment: The firm also trimmed Q3 2026, Q1 2027, Q3 2027, Q4 2027, Q1 2028, Q2 2028, FY2027, and FY2028 EPS forecasts, reinforcing concerns that PepsiCo’s earnings growth may be moderating.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in PepsiCo by 12.4% in the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock valued at $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of PepsiCo during the 1st quarter worth about $251,000. Sivia Capital Partners LLC raised its holdings in shares of PepsiCo by 138.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock valued at $862,000 after purchasing an additional 3,790 shares during the period. Schnieders Capital Management LLC. lifted its stake in PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after purchasing an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. grew its holdings in PepsiCo by 45.5% during the second quarter. Sei Investments Co. now owns 536,133 shares of the company's stock worth $70,789,000 after purchasing an additional 167,707 shares during the period. 73.07% of the stock is owned by institutional investors and hedge funds.

PepsiCo Stock Up 0.8%

Shares of NASDAQ PEP traded up $1.08 during midday trading on Friday, reaching $136.03. The company's stock had a trading volume of 2,545,004 shares, compared to its average volume of 7,922,141. The stock has a 50 day simple moving average of $142.36 and a 200-day simple moving average of $151.03. 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 stock has a market capitalization of $185.67 billion, a price-to-earnings ratio of 17.83, a PEG ratio of 2.98 and a beta of 0.36. PepsiCo has a fifty-two week low of $133.73 and a fifty-two week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate 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 prior year, the company posted $0.92 earnings per share. The firm's revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts predict that PepsiCo will post 8.58 earnings per share for the current year.

PepsiCo Announces Dividend

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

Analyst Upgrades and Downgrades

PEP has been the topic of a number of research reports. BNP Paribas Exane cut their price target on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 8th. Rothschild & Co Redburn raised their price objective on shares of PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. TD Cowen cut their price objective on shares of PepsiCo from $150.00 to $145.00 and set a "hold" rating on the stock in a research report on Friday, July 10th. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Finally, Barclays lifted their price target on PepsiCo from $138.00 to $142.00 and gave the company an "equal weight" rating in a research note on Tuesday. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, PepsiCo presently has an average rating of "Hold" and a consensus price target of $157.90.

PepsiCo Company Profile

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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