PepsiCo (NASDAQ:PEP) Stock Jumps 2.4% Following Insider Buying Activity

Key Points

• PepsiCo shares rose 2.4% after director Robert Pohlad purchased 184,646 shares for approximately $23.7 million, increasing his position by 74.35%.
• Analysts maintain a generally cautious view, with PepsiCo carrying an average “Hold” rating and a $145.50 price target despite several “Buy” or “Outperform” recommendations.
• The company exceeded quarterly earnings and revenue expectations, but faces concerns including below-average moving averages, slowing North American performance, and the upcoming loss of KFC’s U.S. beverage business to Coca-Cola.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) shares were up 2.4% during mid-day trading on Friday after an insider bought additional shares in the company. The company traded as high as $131.59 and last traded at $131.49. Approximately 10,654,753 shares changed hands during mid-day trading, an increase of 31% from the average daily volume of 8,146,000 shares. The stock had previously closed at $128.38.

Specifically, Director Robert Pohlad bought 184,646 shares of PepsiCo stock in a transaction that occurred on Wednesday, October 14th. The stock was purchased at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the acquisition, the director directly owned 433,009 shares in the company, valued at approximately $55,546,394.52. This trade represents a 74.35% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analyst Upgrades and Downgrades

PEP has been the subject of a number of analyst reports. UBS Group reduced their price target on PepsiCo from $159.00 to $145.00 and set a "buy" rating for the company in a report on Friday, October 2nd. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $132.00 price objective on shares of PepsiCo in a report on Friday, October 9th. Royal Bank Of Canada cut their price objective on shares of PepsiCo from $161.00 to $150.00 and set a "sector perform" rating for the company in a research report on Tuesday, October 6th. BNP Paribas Exane lowered their price target on PepsiCo from $161.00 to $157.00 and set an "outperform" rating for the company in a report on Friday, October 9th. Finally, Jefferies Financial Group restated a "hold" rating on shares of PepsiCo in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, PepsiCo currently has an average rating of "Hold" and an average target price of $145.50.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Analysts indicate that KFC represents only a small portion of PepsiCo’s total sales, limiting the immediate earnings impact of the restaurant chain’s decision. Bank of America maintained a Hold rating but raised its price target to $145, suggesting potential upside from current levels and a balanced risk-reward profile. KFC switch to Coke puts PepsiCo's food service ties in focus
• Neutral Sentiment: PepsiCo and the PepsiCo Foundation said their partnership with Feed the Children has delivered 2 million meals through a school-based hunger-relief program. The announcement supports PepsiCo’s corporate-responsibility profile but is unlikely to materially affect near-term earnings. PepsiCo and Feed the Children mark 2 million meals
• Neutral Sentiment: The company’s latest reported quarter showed adjusted earnings and revenue above consensus, with revenue up year over year. However, the stock remains below its 50-day and 200-day moving averages, reflecting investor concerns about slowing growth and North American performance.
• Negative Sentiment: KFC will replace PepsiCo beverages with Coca-Cola products at its U.S. restaurants beginning in January 2027, with a full rollout expected by spring. Although the revenue loss is expected to be modest, the move is a high-profile setback for PepsiCo’s food-service relationships and gives Coca-Cola additional fountain-market visibility. PepsiCo just lost KFC to Coca-Cola
• Negative Sentiment: PepsiCo warned an Indian court that its Sting and Adrenaline Rush energy drinks could run out nationwide within roughly two months if a dispute over “energy drink” labeling continues. The court declined to allow new labeled inventory, while competitors such as Red Bull remain able to sell, creating a supply and market-share risk in an important growth category. PepsiCo warns India energy drinks could run out

PepsiCo Price Performance

The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94. The company's fifty day simple moving average is $134.59 and its two-hundred day simple moving average is $142.33. The stock has a market capitalization of $179.19 billion, a PE ratio of 16.52, a P/E/G ratio of 3.85 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 EPS for the quarter, topping analysts' consensus estimates of $2.29 by $0.05. The firm had revenue of $25.27 billion during the quarter, compared to analysts' expectations of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The firm's quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business posted $2.29 EPS. As a group, sell-side analysts predict that PepsiCo, Inc. will post 8.42 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Onyx Bridge Wealth Group LLC raised its holdings 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 increased its position in 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 purchasing an additional 66 shares during the period. Richards Merrill & Peterson Inc. raised its holdings in PepsiCo by 3.6% during the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company's stock worth $301,000 after purchasing an additional 67 shares during the last quarter. Partners Wealth Management LLC boosted its stake in shares of PepsiCo by 3.5% in the 1st quarter. Partners Wealth Management LLC now owns 1,998 shares of the company's stock valued at $310,000 after purchasing an additional 68 shares during the last quarter. Finally, Pittenger & Anderson Inc. grew its position 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 buying an additional 69 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

About PepsiCo

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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