PepsiCo (NASDAQ:PEP) Stock Falls 1.4% - Here's What Happened

Key Points

• PepsiCo shares fell 1.4% to $133.50 in midday trading, with the stock trading below its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating and $143.28 price target after several firms cut their targets; recent reductions reflect concerns about slower growth and weaker performance relative to Coca-Cola.
• Despite the pressure, PepsiCo recently exceeded quarterly revenue and earnings estimates, while its roughly 4.3% dividend yield remains attractive to income investors. Risks include a reported Quaker Oats plant fire and concerns about brand momentum.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s share price fell 1.4% during mid-day trading on Tuesday. The stock traded as low as $132.50 and last traded at $133.50. Approximately 8,052,862 shares were traded during mid-day trading, a decline of 1% from the average session volume of 8,149,752 shares. The stock had previously closed at $135.46.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s dividend yield is approximately 4.3%, nearly twice Coca-Cola’s 2.2%. Both companies are Dividend Kings with more than 50 consecutive years of payout increases, making PepsiCo attractive to income-focused investors, although Coca-Cola has delivered stronger share-price performance over the past year. Coca-Cola Yields Just 2.2% Compared to 4.3% for PepsiCo
• Positive Sentiment: PepsiCo and agricultural-equipment maker Grimme are developing a virtual potato harvester intended to improve potato quality, reduce crop waste and support growers. The initiative could help strengthen the company’s supply chain and control long-term input costs. Inside the Virtual Potato Harvester
• Positive Sentiment: One valuation analysis argues that PepsiCo may be trading below fair value after a choppy year, potentially offering downside protection if earnings stabilize. The company’s most recent reported quarter also exceeded consensus estimates for revenue and earnings.
• Neutral Sentiment: Reports highlighting PepsiCo as a long-standing consumer-staples dividend payer reinforce the defensive appeal of its portfolio, but they do not directly address the company’s slower growth or valuation risks. Consumer Staples Dividend Kings
• Negative Sentiment: A fire and explosion reportedly struck a PepsiCo Quaker Oats plant. Any resulting disruption, repair costs or lost production could pressure near-term operating results, although the financial impact was not specified. Fire, explosion strike PepsiCo Quaker Oats plant
• Negative Sentiment: Commentary says PepsiCo has lost focus in the cola competition and has underperformed Coca-Cola, contributing to investor concerns about brand momentum and management strategy. A report also disclosed a PepsiCo CEO stock sale worth about $4.1 million, which may weigh modestly on sentiment.
• Negative Sentiment: A Lay’s packet-weight dispute could result in an ₹8,000 payout. The amount is immaterial financially but may add to reputational and product-labeling concerns. PepsiCo Faces Payout Over Lay’s Packet Weight Dispute
• Negative Sentiment: A PepsiCo soda flavor is reportedly being discontinued despite customer opposition, highlighting the risk of weaker product traction and possible consumer dissatisfaction.

Analyst Upgrades and Downgrades

PEP has been the subject of several research analyst reports. Royal Bank Of Canada decreased their price target on shares of PepsiCo from $161.00 to $150.00 and set a "sector perform" rating for the company in a research note on Tuesday, October 6th. BNP Paribas Exane decreased their target price on PepsiCo from $161.00 to $157.00 and set an "outperform" rating for the company in a research report on Friday, October 9th. Piper Sandler lowered their target price on PepsiCo from $176.00 to $140.00 and set an "overweight" rating for the company in a report on Friday, October 9th. TD Cowen dropped their price target on PepsiCo from $145.00 to $133.00 and set a "hold" rating on the stock in a research report on Monday, September 28th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $132.00 price target on shares of PepsiCo in a research note on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $143.28.

PepsiCo Stock Down 1.4%

The business's 50 day moving average is $134.12 and its 200 day moving average is $145.99. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. The company has a market cap of $181.93 billion, a P/E ratio of 16.77, a P/E/G ratio of 4.06 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.29 by $0.05. The business had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The business's revenue was up 5.6% compared to the same quarter last year. During the same period last year, the business posted $2.29 EPS. As a group, equities analysts anticipate that PepsiCo, Inc. will post 8.39 earnings per share for the current fiscal year.

Insider Buying and Selling at PepsiCo

In other PepsiCo news, Director Robert C. Pohlad bought 184,646 shares of the company's stock in a transaction that occurred on Wednesday, October 14th. The shares were purchased at an average cost of $128.28 per share, for a total transaction of $23,686,388.88. Following the purchase, the director directly owned 433,009 shares in the company, valued at $55,546,394.52. This represents a 74.35% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Ramon Laguarta sold 30,000 shares of the company's stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $135.13, for a total value of $4,053,900.00. Following the transaction, the chief executive officer directly owned 491,645 shares in the company, valued at $66,435,988.85. This represents a 5.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PepsiCo

A number of large investors have recently modified their holdings of the business. Core Capital Management & Research inc. acquired a new position in shares of PepsiCo in the 2nd quarter valued at about $932,000. State Street Corp grew its holdings in PepsiCo by 1.7% during the second quarter. State Street Corp now owns 60,406,932 shares of the company's stock worth $8,179,099,000 after acquiring an additional 987,582 shares during the period. First Nebraska Trust Co acquired a new stake in PepsiCo during the first quarter worth about $10,782,000. The Manufacturers Life Insurance Company raised its position in PepsiCo by 19.0% during the second quarter. The Manufacturers Life Insurance Company now owns 1,110,852 shares of the company's stock valued at $150,409,000 after acquiring an additional 177,468 shares in the last quarter. Finally, IFM Investors Pty Ltd raised its position in PepsiCo by 4.8% during the first quarter. IFM Investors Pty Ltd now owns 273,135 shares of the company's stock valued at $42,415,000 after acquiring an additional 12,472 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Company Profile

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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