PepsiCo (NASDAQ:PEP) Hits New 12-Month Low – Here’s Why

PepsiCo, Inc. (NASDAQ:PEP)’s stock price reached a new 52-week low during trading on Monday . The company traded as low as $134.55 and last traded at $134.7160, with a volume of 3740765 shares. The stock had previously closed at $137.12.

Analyst Ratings Changes

Several brokerages have weighed in on PEP. HSBC increased their price objective on PepsiCo from $175.00 to $176.00 and gave the company a “hold” rating in a report on Friday, April 17th. JPMorgan Chase & Co. lowered their target price on PepsiCo from $178.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 1st. TD Cowen dropped their price target on PepsiCo from $150.00 to $145.00 and set a “hold” rating on the stock in a research report on Friday, July 10th. Royal Bank Of Canada decreased their price objective on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a report on Friday, July 10th. Finally, Citigroup cut PepsiCo from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $157.90.

PepsiCo Price Performance

The firm has a market cap of $184.26 billion, a P/E ratio of 17.69, a PEG ratio of 2.97 and a beta of 0.36. The business’s fifty day simple moving average is $142.91 and its 200-day simple moving average is $151.14. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The firm had revenue of $24.18 billion during the quarter, compared to analyst estimates of $23.95 billion. During the same period last year, the company earned $0.92 earnings per share. The business’s revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, analysts forecast that PepsiCo, Inc. will post 8.58 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be issued a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s payout ratio is presently 77.59%.

Institutional Investors Weigh In On PepsiCo

A number of institutional investors and hedge funds have recently modified their holdings of PEP. Auto Owners Insurance Co lifted its stake in PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after purchasing an additional 48,923,629 shares in the last quarter. Norges Bank purchased a new position in shares of PepsiCo during the 4th quarter valued at $3,018,813,000. Diamant Asset Management Inc. increased its holdings in shares of PepsiCo by 16,146.5% in the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock worth $556,936,000 after purchasing an additional 3,564,348 shares during the period. Assenagon Asset Management S.A. increased its holdings in shares of PepsiCo by 952.6% in the second quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company’s stock worth $503,121,000 after purchasing an additional 3,362,794 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of PepsiCo by 120.7% in the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after buying an additional 3,235,726 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

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.