PepsiCo (NASDAQ:PEP) Stock Price Down 1.8% on Analyst Downgrade

Key Points

• PepsiCo shares fell 1.8% after Citigroup cut its price target from $142 to $135 and maintained a neutral rating. Other analysts also lowered targets, and the consensus rating remains “Hold” with an average target of $145.85.
• PepsiCo beat quarterly expectations with adjusted EPS of $2.34 and revenue of $25.27 billion, up 5.6% year over year, but reduced its 2026 earnings outlook below analyst consensus due to higher costs and continued North American weakness.
• The company continues to offer a substantial dividend, with a quarterly payout of $1.48 per share, equal to a 4.7% annualized yield. However, declining U.S. beverage volumes, pricing pressure and concerns about market-share losses remain key risks.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) was down 1.8% on Friday after Citigroup lowered their price target on the stock from $142.00 to $135.00. Citigroup currently has a neutral rating on the stock. PepsiCo traded as low as $125.29 and last traded at $125.97. 9,847,018 shares changed hands during mid-day trading, an increase of 22% from the average daily volume of 8,090,233 shares. The stock had previously closed at $128.34.

PEP has been the subject of several other research reports. Piper Sandler decreased their price target on PepsiCo from $176.00 to $140.00 and set an "overweight" rating for the company in a research note on Friday. Royal Bank Of Canada reduced their price objective on PepsiCo from $161.00 to $150.00 and set a "sector perform" rating for the company in a report on Tuesday. JPMorgan Chase & Co. decreased their target price on PepsiCo from $138.00 to $137.00 and set a "neutral" rating for the company in a research report on Friday. Morgan Stanley set a $145.00 target price on shares of PepsiCo in a research note on Friday. Finally, Weiss Ratings lowered shares of PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, September 24th. Five research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $145.85.

Insider Transactions at PepsiCo

In other news, EVP David Flavell sold 2,900 shares of the stock in a transaction 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 directly owned 74,825 shares of the company's stock, valued at $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.12% of the company's stock.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded third-quarter expectations, reporting adjusted EPS of $2.34 versus a $2.29 consensus and revenue of $25.27 billion, up 5.6% year over year. International growth, pricing and healthier snack products helped offset domestic weakness. PepsiCo beats third-quarter expectations but cuts profit outlook
• Positive Sentiment: The company plans additional cost reductions and investments to support its North American turnaround. It also completed a $746.24 million repurchase of 5 million shares, providing support through capital returns. Is PepsiCo a Bargain Following Its Buyback?
• Positive Sentiment: UBS said the valuation discount appears excessive relative to PepsiCo’s recovery potential, while maintaining an attractive risk-reward view. BNP Paribas Exane retained an “outperform” rating despite lowering its price target to $157. UBS says Pepsi offers attractive risk-reward
• Neutral Sentiment: PepsiCo is raising prices on Doritos, Ruffles, SunChips and some beverages by single-digit percentages. The move may help offset inflation and input costs, but could further pressure volumes as consumers seek cheaper options. PepsiCo raising prices on snacks and sodas
• Negative Sentiment: PepsiCo reduced its 2026 earnings outlook to $8.344–$8.425 per share, below the roughly $8.55 analyst consensus, citing higher costs and persistent North American weakness. Management also warned that North American margins may remain pressured into the fourth quarter. North America weakness drives guidance cut
• Negative Sentiment: U.S. soda volumes declined, and analysts warn PepsiCo is losing beverage momentum and potentially market share to Coca-Cola. The slower turnaround, changing consumer preferences and higher prices are raising concerns about volume recovery and 2027 growth. Pepsi soda sales decline amid consumer shift

Hedge Funds Weigh In On PepsiCo

Several large investors have recently made changes to their positions in the business. Moody National Bank Trust Division lifted its holdings in PepsiCo by 10.5% in the 3rd quarter. Moody National Bank Trust Division now owns 17,276 shares of the company's stock worth $2,189,000 after purchasing an additional 1,641 shares in the last quarter. Adelphi Trust Co grew its holdings in PepsiCo by 6.2% during the 3rd quarter. Adelphi Trust Co now owns 7,862 shares of the company's stock valued at $996,000 after buying an additional 457 shares in the last quarter. Rockland Trust Co. raised its position in shares of PepsiCo by 2.6% during the third quarter. Rockland Trust Co. now owns 367,153 shares of the company's stock valued at $46,526,000 after buying an additional 9,403 shares during the last quarter. Envestnet Portfolio Solutions Inc. raised its position in shares of PepsiCo by 10.5% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 127,986 shares of the company's stock valued at $17,321,000 after buying an additional 12,193 shares during the last quarter. Finally, State Street Corp lifted its holdings in shares of PepsiCo by 1.7% in the second quarter. State Street Corp now owns 60,406,932 shares of the company's stock worth $8,179,099,000 after buying an additional 987,582 shares in the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Down 1.8%

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 $171.94 billion, a PE ratio of 16.51, a PEG ratio of 2.81 and a beta of 0.35. The company's 50 day moving average is $135.75 and its two-hundred day moving average is $143.17.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings results on Thursday, October 8th. The company reported $2.34 EPS for the quarter, topping the consensus estimate of $2.29 by $0.05. The business had revenue of $25.27 billion for the quarter, compared to analysts' expectations of $24.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business's quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.29 EPS. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS. On average, analysts anticipate that PepsiCo, Inc. will post 8.56 earnings per share for the current year.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were issued a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a yield of 4.7%. The ex-dividend date was Friday, September 4th. PepsiCo's dividend payout ratio (DPR) is currently 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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