Key Points
- Director Robert Pohlad bought 184,646 PepsiCo shares for approximately $23.7 million, increasing his ownership by 74.35% to 433,009 shares.
- PepsiCo’s latest quarter exceeded expectations, with adjusted earnings of $2.34 per share and revenue of $25.27 billion, up 5.6% year over year.
- Despite the insider purchase and earnings beat, PepsiCo faces challenges including elevated debt, KFC’s planned switch from Pepsi to Coca-Cola, and potential energy-drink supply disruptions in India; analysts maintain a consensus “Hold” rating with a $145.50 price target.
PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) Director Robert Pohlad acquired 184,646 shares of the business's stock in a transaction that occurred on Wednesday, October 14th. The shares were purchased at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the transaction, the director owned 433,009 shares of the company's stock, valued at $55,546,394.52. The trade was a 74.35% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.
PepsiCo Trading Up 2.4%
PEP stock traded up $3.11 during trading on Friday, reaching $131.49. 10,693,663 shares of the stock were exchanged, compared to its average volume of 10,758,042. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90. The business has a 50 day moving average price of $134.44 and a 200-day moving average price of $142.25. PepsiCo, Inc. has a 1 year low of $123.47 and a 1 year high of $171.48. The firm has a market capitalization of $179.19 billion, a price-to-earnings ratio of 16.52, a P/E/G ratio of 3.82 and a beta of 0.35.
PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, beating 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 company had revenue of $25.27 billion for the quarter, compared to analyst estimates of $24.95 billion. During the same period in the previous year, the business posted $2.29 EPS. PepsiCo's revenue was up 5.6% on a year-over-year basis. On average, research analysts predict that PepsiCo, Inc. will post 8.41 earnings per share for the current year.
More PepsiCo News
Here are the key news stories impacting PepsiCo this week:
- Positive Sentiment: Director Robert Pohlad bought 184,646 shares for approximately $23.7 million, increasing his direct ownership by 74.35%. The purchase may signal confidence that PepsiCo’s depressed valuation does not reflect its long-term prospects. SEC insider transaction filing
- Positive Sentiment: Bank of America maintained a Hold rating but raised its price target to $145, suggesting balanced risk-reward and potential upside from current levels. The firm cited strength at Taco Bell as partially offsetting the KFC loss. Bank of America rating update
- Neutral Sentiment: PepsiCo announced a €500 million offering of 3.750% senior notes. The proceeds strengthen funding flexibility, although the transaction adds to the company’s already elevated debt burden. PepsiCo euro-denominated senior notes announcement
- Neutral Sentiment: PepsiCo, its foundation and Feed the Children reported distributing 2 million meals through a school-based hunger-relief program. The announcement supports corporate reputation but is unlikely to materially affect earnings. PepsiCo hunger-relief program announcement
- Negative Sentiment: KFC will replace Pepsi beverages with Coca-Cola products at U.S. restaurants beginning in January 2027, with a full rollout expected by spring. Although KFC represents a limited portion of PepsiCo’s sales, investors view the loss as a setback for its U.S. food-service business and brand presence. Reuters report on KFC switching beverage suppliers
- Negative Sentiment: In India, PepsiCo warned that its Sting and Adrenaline Rush energy drinks could run out within two months after a court declined to suspend restrictions on “energy drink” labeling. The dispute could cause supply disruptions and allow competitors such as Red Bull to gain share. PepsiCo India energy-drink supply report
Wall Street Analysts Forecast Growth
PEP has been the topic of a number of recent analyst reports. The Goldman Sachs Group reiterated a "buy" rating and issued a $165.00 price objective on shares of PepsiCo in a report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $132.00 target price on shares of PepsiCo in a research note on Friday, October 9th. Sanford C. Bernstein restated a "market perform" rating on shares of PepsiCo in a research report on Friday, October 9th. UBS Group reduced their target price on PepsiCo from $159.00 to $145.00 and set a "buy" rating on the stock in a research report on Friday, October 2nd. Finally, Morgan Stanley set a $145.00 price target on PepsiCo in a research note on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $145.50.
Read Our Latest Stock Report on PepsiCo
Institutional Trading of PepsiCo
Several institutional investors have recently added to or reduced their stakes in PEP. Banque Pictet & Cie SA lifted its stake in PepsiCo by 14.1% during the third quarter. Banque Pictet & Cie SA now owns 174,844 shares of the company's stock worth $22,156,000 after purchasing an additional 21,663 shares in the last quarter. Rise Advisors LLC boosted its position in shares of PepsiCo by 17.1% during the third quarter. Rise Advisors LLC now owns 1,852 shares of the company's stock worth $235,000 after buying an additional 271 shares during the period. James T. Borello RIA acquired a new stake in shares of PepsiCo in the third quarter valued at $131,000. V Square Quantitative Management LLC grew its stake in shares of PepsiCo by 4.1% in the third quarter. V Square Quantitative Management LLC now owns 31,761 shares of the company's stock valued at $4,025,000 after buying an additional 1,265 shares in the last quarter. Finally, YANKCOM Partnership raised its holdings in shares of PepsiCo by 9.2% in the 3rd quarter. YANKCOM Partnership now owns 11,260 shares of the company's stock valued at $1,427,000 after buying an additional 945 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.
About PepsiCo
(
Get Free Report)
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.
Further Reading
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