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

Key Points

• PepsiCo shares hit a new 52-week low of $124.13 after RBC cut its price target from $161 to $150. The stock carries a consensus “Hold” rating, with analysts’ average target at $150.20.
• Recent analyst actions have generally been cautious, with Deutsche Bank, Barclays, Morgan Stanley and Citigroup lowering their price targets; insiders own just 0.12% of the company, and an executive recently sold shares.
• Despite the pressure, PepsiCo reported quarterly revenue growth of 6.4%, reaffirmed fiscal 2026 EPS guidance of $8.55–$8.71, and offers an annualized dividend of $5.92, yielding approximately 4.8%.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) reached a new 52-week low on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $161.00 to $150.00. Royal Bank Of Canada currently has a sector perform rating on the stock. PepsiCo traded as low as $124.13 and last traded at $124.2350, with a volume of 3507239 shares traded. The stock had previously closed at $125.71.

Several other analysts have also recently issued reports on PEP. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $138.00 price objective (down from $155.00) on shares of PepsiCo in a research note on Monday, September 28th. Barclays lowered their target price on PepsiCo from $142.00 to $133.00 and set an "equal weight" rating for the company in a report on Wednesday, September 30th. Morgan Stanley dropped their price target on shares of PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a research note on Friday, July 10th. Piper Sandler set a $176.00 price target on PepsiCo in a report on Thursday, July 9th. Finally, Citigroup lowered their target price on PepsiCo from $145.00 to $142.00 and set a "neutral" rating on the stock in a research report on Thursday, September 24th. Five investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, PepsiCo currently has a consensus rating of "Hold" and a consensus target price of $150.20.

Insider Buying and Selling

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the stock in a transaction that occurred 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 in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.12% of the company's stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s long-standing dividend growth and roughly 4.7% yield are attracting income-oriented investors, who view the depressed valuation as an opportunity if the company can stabilize operations. My Only Dividend Buy This October Has Raised Its Payout Every Year for Decades
• Positive Sentiment: Carlsberg’s planned expansion into Georgia and Armenia would extend PepsiCo’s bottling partnership to 17 Eastern European and Central Asian markets, supporting international distribution. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Positive Sentiment: A Delhi High Court ruling temporarily allows PepsiCo and partners to continue selling existing products labeled as energy drinks in India, limiting the immediate commercial impact of a labeling dispute. Delhi High Court Energy Drink Ruling

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. boosted its holdings in PepsiCo by 2.1% during the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock valued at $16,015,363,000 after acquiring an additional 2,440,377 shares during the period. State Street Corp lifted its position in shares of PepsiCo by 1.7% during the 2nd quarter. State Street Corp now owns 60,406,932 shares of the company's stock worth $8,179,099,000 after purchasing an additional 987,582 shares during the last quarter. Auto Owners Insurance Co boosted its stake 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 during the period. Bank of America Corp DE grew its holdings in PepsiCo by 0.6% in the 1st quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock valued at $3,305,146,000 after buying an additional 133,325 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in PepsiCo by 4.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company's stock worth $1,600,114,000 after buying an additional 549,336 shares during the period. Institutional investors own 73.07% of the company's stock.

PepsiCo Trading Down 1.2%

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 company has a market capitalization of $169.45 billion, a price-to-earnings ratio of 16.29, a price-to-earnings-growth ratio of 2.85 and a beta of 0.35. The business has a fifty day moving average price of $136.38 and a 200 day moving average price of $143.53.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating analysts' consensus estimates of $2.19 by $0.01. The business had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm's revenue for the quarter was up 6.4% on a year-over-year basis. 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, equities analysts expect that PepsiCo, Inc. will post 8.56 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were given a $1.48 dividend. The ex-dividend date was Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.8%. PepsiCo's payout ratio is 77.59%.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay's, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company's operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.

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