PepsiCo (NASDAQ:PEP) Sets New 52-Week Low Following Analyst Downgrade

Key Points

• PepsiCo shares hit a new 52-week low near $127.96 after Citigroup cut its price target to $142 from $145 while maintaining a Neutral rating.
• Analyst sentiment remains cautious, with an overall Hold rating and an average price target of $156.65; several firms have recently reduced their targets.
• Weak demand and restructuring are key concerns as PepsiCo plans price increases on some products and is closing a Maryland plant with 143 job cuts. Investors are also awaiting third-quarter results on October 8, while the company maintains a $1.48 quarterly dividend.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) reached a new 52-week low during trading on Friday after Citigroup lowered their price target on the stock from $145.00 to $142.00. Citigroup currently has a neutral rating on the stock. PepsiCo traded as low as $127.96 and last traded at $127.5910, with a volume of 88765 shares traded. The stock had previously closed at $128.15.

Other equities analysts have also recently issued reports about the company. Morgan Stanley cut their price target on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating for the company in a report on Friday, July 10th. TD Cowen restated a "hold" rating on shares of PepsiCo in a research report on Friday, August 28th. BNP Paribas Exane dropped their price target on shares of PepsiCo from $183.00 to $161.00 and set an "outperform" rating for the company in a research report on Wednesday. Jefferies Financial Group decreased their target price on PepsiCo from $162.00 to $152.00 and set a "hold" rating for the company in a research report on Friday, July 10th. Finally, Bank of America cut their price objective on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a research report on Thursday, June 25th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $156.65.

Insider Activity at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the firm's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the transaction, 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.12% of the stock is currently owned by company insiders.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusually high call-option activity indicates that some traders are positioning for a rebound, with reported call volume well above typical levels. Investors Buy High Volume of Call Options on PepsiCo
• Neutral Sentiment: PepsiCo is scheduled to report third-quarter results on October 8. Analysts expect approximately $2.30 in earnings per share and $25 billion in revenue, making the report an important near-term catalyst. The company previously exceeded quarterly earnings and revenue estimates and reported 6.4% year-over-year revenue growth. PepsiCo Earnings Are Imminent
• Neutral Sentiment: Citigroup lowered its PepsiCo price target to $142 from $145 while maintaining a Neutral rating. The revised target still implies potential upside from current levels, but the reduction reflects greater uncertainty around sales and pricing. Citigroup Adjusts Price Target on PepsiCo
• Negative Sentiment: PepsiCo plans to raise prices on certain chips, dips, soda, and other snacks after earlier price cuts failed to stimulate sales. The reversal suggests that demand remains weak and could risk further volume declines or lost shelf space, while higher input costs are pressuring margins. PepsiCo to Lift Prices on Some Snacks
• Negative Sentiment: The company is also closing a Maryland plant and eliminating 143 jobs amid weakening soda demand, adding to reports of PepsiCo facility closures and workforce reductions. The developments reinforce concerns about slowing consumer demand and operational restructuring. PepsiCo Shutters Maryland Plant

Hedge Funds Weigh In On PepsiCo

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

PepsiCo Price Performance

The company's 50-day moving average is $138.02 and its 200-day moving average is $145.31. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The firm has a market capitalization of $173.71 billion, a price-to-earnings ratio of 16.64, a PEG ratio of 2.76 and a beta of 0.35.

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

PepsiCo Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be paid a $1.48 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.7%. PepsiCo's payout ratio is 77.59%.

About PepsiCo

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.

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