PepsiCo (NASDAQ:PEP) Sets New 52-Week Low - Here's Why

Key Points

• PepsiCo shares hit a new 52-week low of $133.36, reflecting concerns over softer North American demand, higher costs, margin pressure and the stock trading below its 50-day moving average.
• The company is closing its Cheverly, Maryland, bottling facility and eliminating roughly 143 jobs, reinforcing concerns about restructuring and weaker consumer demand despite potential long-term cost savings.
• PepsiCo’s quarterly results modestly exceeded estimates, while its 4.4% dividend yield and valuation of about 17.5 times earnings may appeal to income and value investors; however, analysts maintain a consensus “Hold” rating with an average price target of $157.90.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) shares hit a new 52-week low on Thursday . The stock traded as low as $133.36 and last traded at $132.9550, with a volume of 1969767 shares trading hands. The stock had previously closed at $134.34.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s participation in the PaperFlex Consortium, alongside Nestlé, Colgate-Palmolive, Mars, Procter & Gamble and Unilever, could support its packaging and sustainability goals. The initiative may improve the company’s environmental profile and help address regulatory and consumer pressure on plastic packaging. Nestlé, PepsiCo join forces on paper packaging push
• Positive Sentiment: PepsiCo continues promoting ESG programs focused on water conservation and more sustainable farming. Management is positioning these efforts as contributors to long-term business growth, although the near-term financial impact is unclear. PepsiCo advances ESG ambitions with efforts across water and farming contributing to business growth
• Positive Sentiment: At roughly 17–18 times earnings, PepsiCo is trading below the broader market’s valuation, which may attract value and income investors. Its long record of dividend growth remains a supporting factor, though the discount reflects concerns about slower earnings growth. Is PepsiCo Stock Cheap Enough To Live With Slow Growth?
• Neutral Sentiment: PepsiCo may be considering a brand rebranding, based on a social media video. No concrete details or financial implications have been announced, so the development is unlikely to materially affect valuation yet. PepsiCo hints at possible rebranding in a social media video
• Neutral Sentiment: A PepsiCo supply-chain executive is leaving to lead operations at McCain Foods. The move could create a management transition, but there is no indication of a material impact on PepsiCo’s operations. McCain Foods taps PepsiCo supply chain executive to head operations
• Negative Sentiment: PepsiCo is ending manufacturing and warehouse operations at its Cheverly, Maryland, bottling facility and plans to eliminate 143 jobs, including 98 workers identified in some reports. The company cited changing consumer preferences and technology. While the closure could reduce costs over time, the layoffs reinforce concerns about restructuring and weaker demand. PepsiCo to end manufacturing operations at Maryland bottling plant
• Negative Sentiment: Analyst commentary remains cautious because of softer North American demand, higher costs and margin pressure. PEP’s position below its 50-day average suggests investors are demanding evidence that growth and profitability can reaccelerate. PepsiCo Trades Below 50-Day SMA: Opportunity or Warning Sign?

Wall Street Analysts Forecast Growth

PEP has been the topic of a number of research analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of PepsiCo in a report on Monday, July 6th. Jefferies Financial Group dropped their target price on shares of PepsiCo from $162.00 to $152.00 and set a "hold" rating on the stock in a research note on Friday, July 10th. Evercore set a $150.00 price target on shares of PepsiCo in a research note on Thursday, July 9th. UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Finally, Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a research report on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $157.90.

PepsiCo Stock Performance

The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The company has a market capitalization of $182.53 billion, a PE ratio of 17.52, a PEG ratio of 2.85 and a beta of 0.35. The business has a 50 day simple moving average of $138.85 and a 200 day simple moving average of $146.75.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued 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. The business had revenue of $24.18 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Equities research analysts predict that PepsiCo, Inc. will post 8.57 EPS 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 given a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.4%. PepsiCo's dividend payout ratio (DPR) is currently 77.59%.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the business'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 completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On PepsiCo

Several hedge funds have recently modified their holdings of the company. Cypress Capital Management LLC WY raised its position in PepsiCo by 8.3% in the 4th quarter. Cypress Capital Management LLC WY now owns 838 shares of the company's stock valued at $121,000 after purchasing an additional 64 shares during the last quarter. Onyx Bridge Wealth Group LLC grew its holdings in PepsiCo by 2.5% during the 1st quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company's stock worth $415,000 after acquiring an additional 66 shares during the last quarter. Wilkerson Advisory Group LLC increased its position in PepsiCo by 3.3% in the 1st quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company's stock valued at $317,000 after acquiring an additional 66 shares in the last quarter. Richards Merrill & Peterson Inc. raised its stake in shares of PepsiCo by 3.6% in the first quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock worth $301,000 after acquiring an additional 67 shares during the last quarter. Finally, Partners Wealth Management LLC lifted its position 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 worth $310,000 after purchasing an additional 68 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Company Profile

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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