PepsiCo, Inc. (NASDAQ:PEP) Given Consensus Recommendation of “Hold” by Brokerages

PepsiCo, Inc. (NASDAQ:PEP) has been assigned a consensus recommendation of “Hold” from the twenty research firms that are covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, eleven have issued a hold recommendation and eight have given a buy recommendation to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $167.35.

Several analysts have weighed in on PEP shares. The Goldman Sachs Group raised their price target on PepsiCo from $180.00 to $183.00 and gave the company a “buy” rating in a report on Friday, April 17th. JPMorgan Chase & Co. raised their price objective on PepsiCo from $172.00 to $178.00 and gave the company an “overweight” rating in a report on Friday, April 17th. Wall Street Zen cut PepsiCo from a “buy” rating to a “hold” rating in a report on Saturday, April 18th. Argus raised PepsiCo to a “hold” rating in a report on Tuesday, February 17th. Finally, Sanford C. Bernstein assumed coverage on PepsiCo in a report on Thursday. They set a “market perform” rating and a $143.00 price objective on the stock.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo continues to expand its autonomous freight network with Gatik, a move that could improve logistics efficiency and help address staffing challenges in hard-to-serve routes. How PepsiCo’s Driverless Freight Rollout With Gatik (PEP) Has Changed Its Investment Story
• Positive Sentiment: The company also highlighted sustainability-focused farmer financing through Compeer Financial, which supports PepsiCo’s supply chain and long-term agricultural sourcing strategy. Compeer Financial Collaborates with PepsiCo to Provide Strip-Till Equipment Financing
• Neutral Sentiment: PepsiCo was included in a Q1 review of beverage, alcohol, and tobacco stocks, but the article was primarily a peer comparison and did not indicate a major new catalyst. Beverages, Alcohol, and Tobacco Stocks Q1 In Review: PepsiCo (NASDAQ:PEP) Vs Peers
• Neutral Sentiment: Analyst estimate changes were modest, with Erste Group trimming FY2027 EPS slightly to $9.14 from $9.15, suggesting limited impact on the outlook.
• Negative Sentiment: TD Cowen cut its price target on PepsiCo to $150 from $165 and kept a hold rating, signaling more cautious near-term sentiment on the stock. TD Cowen adjusts PepsiCo price target to 150 from 165
• Negative Sentiment: Piper Sandler also lowered its price target on PepsiCo to $178 from $181, reinforcing the view that analysts see only limited upside from here. Piper Sandler adjusts price target on PepsiCo to 178 from 181

Hedge Funds Weigh In On PepsiCo

A number of large investors have recently modified their holdings of the company. Dakota Community Bank & Trust NA raised its holdings in shares of PepsiCo by 8.5% during the 1st quarter. Dakota Community Bank & Trust NA now owns 2,235 shares of the company’s stock valued at $347,000 after buying an additional 176 shares in the last quarter. Evansbrook LLC grew its position in PepsiCo by 13.5% during the 1st quarter. Evansbrook LLC now owns 3,179 shares of the company’s stock worth $494,000 after acquiring an additional 377 shares during the last quarter. Wealthquest Corp bought a new position in PepsiCo during the 1st quarter worth approximately $219,000. Parallel Advisors LLC grew its position in PepsiCo by 6.2% during the 1st quarter. Parallel Advisors LLC now owns 57,425 shares of the company’s stock worth $8,918,000 after acquiring an additional 3,339 shares during the last quarter. Finally, First Nebraska Trust Co bought a new position in PepsiCo during the 1st quarter worth approximately $10,782,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Stock Performance

NASDAQ:PEP opened at $144.27 on Wednesday. The business’s 50-day moving average price is $151.11 and its two-hundred day moving average price is $152.41. PepsiCo has a twelve month low of $127.60 and a twelve month high of $171.48. The stock has a market cap of $197.18 billion, a P/E ratio of 22.65, a PEG ratio of 2.61 and a beta of 0.35. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to analysts’ expectations of $18.89 billion. During the same quarter last year, the firm posted $1.48 EPS. The company’s revenue was up 8.5% compared to the same quarter last year. As a group, equities analysts predict that PepsiCo will post 8.63 EPS for the current fiscal year.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, June 5th will be issued a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.1%. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. PepsiCo’s payout ratio is 92.94%.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.