PepsiCo (NASDAQ:PEP) Shares Down 2.2% on Insider Selling

Key Points

• PepsiCo shares fell 2.2% to $135.77 after CEO Ramon Laguarta sold 30,000 shares for approximately $4.05 million, reducing his direct stake by 5.75%.
• Analysts remain cautious, with the stock carrying an average “Hold” rating and a $143.28 target price; recent forecasts also cited lower EPS expectations and concerns about dividend coverage.
• PepsiCo faces mixed business signals: its long-term Taco Bell beverage partnership supports distribution, while declining North American beverage volumes and the closure of a Tennessee bottling plant highlight ongoing demand pressure.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s stock price dropped 2.2% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $134.66 and last traded at $135.77. Approximately 7,471,948 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 8,159,289 shares. The stock had previously closed at $138.83.

Specifically, CEO Ramon Laguarta sold 30,000 shares of the company's stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the transaction, the chief executive officer directly owned 491,645 shares of the company's stock, valued at approximately $66,435,988.85. This represents a 5.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities research analysts have recently commented on PEP shares. Jefferies Financial Group restated a "hold" rating on shares of PepsiCo in a report on Thursday, October 8th. Sanford C. Bernstein restated a "market perform" rating on shares of PepsiCo in a report on Friday, October 9th. Bank of America reduced their price objective on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating for the company in a report on Thursday, June 25th. The Goldman Sachs Group reissued a "buy" rating and set a $165.00 target price on shares of PepsiCo in a research report on Thursday, October 8th. Finally, Freedom Broker upgraded shares of PepsiCo from a "hold" rating to a "strong-buy" rating in a report on Saturday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $143.28.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed its beverage partnership with Taco Bell through 2036, preserving an important distribution channel for Pepsi, Mountain Dew Baja Blast and future crafted, functional and energy drinks. The agreement is particularly supportive after Taco Bell’s sister chain, KFC, selected Coca-Cola in the U.S. Pepsi renews contract with Taco Bell
• Positive Sentiment: Increased options activity included more than 55,000 purchased call contracts, roughly 71% above typical volume. This may indicate speculative bullish interest, although options activity alone does not establish a durable change in investor sentiment. Unusual Options Volume Report
• Neutral Sentiment: PepsiCo is expanding beyond traditional soda and snacks with protein-focused Good Warrior bars, new Quaker snack products in India and other product-innovation initiatives. These efforts could support longer-term growth, but their near-term financial contribution is uncertain. PepsiCo’s Good Warrior enters protein bar space
• Negative Sentiment: PepsiCo is closing its Knoxville, Tennessee, bottling plant, affecting more than 100 jobs, amid sliding soft-drink volumes. The shutdown may reduce costs, but it also highlights pressure on North American beverage demand. PepsiCo shuts Tennessee bottling plant
• Negative Sentiment: Erste Group lowered its FY2026 and FY2027 EPS forecasts to $8.39 and $8.60, respectively. Separate commentary also questioned whether PepsiCo’s roughly 4% dividend yield is adequately covered by cash flow after the company reduced its earnings outlook, increasing concern about payout sustainability. PepsiCo dividend coverage concerns

PepsiCo Stock Performance

The company's 50 day moving average price is $134.15 and its 200-day moving average price is $141.57. The stock has a market cap of $185.02 billion, a P/E ratio of 17.06, a price-to-earnings-growth ratio of 4.01 and a beta of 0.35. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business had revenue of $25.27 billion for the quarter, compared to analysts' expectations of $24.95 billion. During the same period in the previous year, the company earned $2.29 earnings per share. The firm's revenue for the quarter was up 5.6% compared to the same quarter last year. Equities analysts forecast that PepsiCo, Inc. will post 8.41 EPS for the current fiscal year.

Institutional Trading of PepsiCo

A number of hedge funds have recently bought and sold shares of the business. Evergreen Advisors LLC bought a new stake in shares of PepsiCo during the 1st quarter worth $25,000. Montgomery Financial Services LLC bought a new position in PepsiCo during the second quarter valued at about $25,000. Networth Advisors LLC increased its holdings in PepsiCo by 2,857.1% during the first quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after buying an additional 200 shares during the last quarter. MBM Wealth Consultants LLC purchased a new stake in PepsiCo during the first quarter worth about $35,000. Finally, Atlatl Advisers LLC bought a new stake in PepsiCo in the second quarter worth about $31,000. 73.07% of the stock is currently owned by institutional investors.

About PepsiCo

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

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