PepsiCo (NASDAQ:PEP) Sets New 12-Month Low – Should You Sell?

PepsiCo, Inc. (NASDAQ:PEP) shares hit a new 52-week low during trading on Thursday . The company traded as low as $133.36 and last traded at $132.9550, with a volume of 1969767 shares trading hands. The stock had previously closed at $134.34.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s participation in the PaperFlex Consortium, alongside Nestlé, Colgate-Palmolive, Mars, Procter & Gamble and Unilever, could support its packaging and sustainability goals. The initiative may improve the company’s environmental profile and help address regulatory and consumer pressure on plastic packaging. Nestlé, PepsiCo join forces on paper packaging push
• Positive Sentiment: PepsiCo continues promoting ESG programs focused on water conservation and more sustainable farming. Management is positioning these efforts as contributors to long-term business growth, although the near-term financial impact is unclear. PepsiCo advances ESG ambitions with efforts across water and farming contributing to business growth
• Positive Sentiment: At roughly 17–18 times earnings, PepsiCo is trading below the broader market’s valuation, which may attract value and income investors. Its long record of dividend growth remains a supporting factor, though the discount reflects concerns about slower earnings growth. Is PepsiCo Stock Cheap Enough To Live With Slow Growth?
• Neutral Sentiment: PepsiCo may be considering a brand rebranding, based on a social media video. No concrete details or financial implications have been announced, so the development is unlikely to materially affect valuation yet. PepsiCo hints at possible rebranding in a social media video
• Neutral Sentiment: A PepsiCo supply-chain executive is leaving to lead operations at McCain Foods. The move could create a management transition, but there is no indication of a material impact on PepsiCo’s operations. McCain Foods taps PepsiCo supply chain executive to head operations
• Negative Sentiment: PepsiCo is ending manufacturing and warehouse operations at its Cheverly, Maryland, bottling facility and plans to eliminate 143 jobs, including 98 workers identified in some reports. The company cited changing consumer preferences and technology. While the closure could reduce costs over time, the layoffs reinforce concerns about restructuring and weaker demand. PepsiCo to end manufacturing operations at Maryland bottling plant
• Negative Sentiment: Analyst commentary remains cautious because of softer North American demand, higher costs and margin pressure. PEP’s position below its 50-day average suggests investors are demanding evidence that growth and profitability can reaccelerate. PepsiCo Trades Below 50-Day SMA: Opportunity or Warning Sign?

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft set a $155.00 target price on PepsiCo in a research report on Friday, July 10th. Wells Fargo & Company dropped their price objective on PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Royal Bank Of Canada cut their target price on shares of PepsiCo from $163.00 to $161.00 and set a “sector perform” rating on the stock in a research report on Friday, July 10th. Sanford C. Bernstein set a $134.00 price target on shares of PepsiCo in a research report on Friday, July 10th. Finally, TD Cowen restated a “hold” rating on shares of PepsiCo in a report on Friday, August 28th. Seven analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $157.90.

PepsiCo Stock Performance

The firm has a market cap of $182.53 billion, a P/E ratio of 17.52, a PEG ratio of 2.85 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The stock’s 50-day moving average is $138.85 and its 200 day moving average is $146.75.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. The firm had revenue of $24.18 billion during the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The company’s revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts predict that PepsiCo, Inc. will post 8.57 earnings per share for the current year.

PepsiCo Announces Dividend

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 annualized dividend and a yield of 4.4%. The ex-dividend date is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is 77.59%.

Insider Activity

In related news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.12% of the stock is owned by corporate insiders.

Institutional Trading of PepsiCo

A number of institutional investors have recently modified their holdings of PEP. Evergreen Advisors LLC acquired a new position in PepsiCo during the 1st quarter worth approximately $25,000. Montgomery Financial Services LLC acquired a new stake in shares of PepsiCo in the second quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of PepsiCo in the fourth quarter worth $26,000. Atlatl Advisers LLC bought a new position in PepsiCo in the second quarter valued at $31,000. Finally, Osterweis Capital Management Inc. acquired a new stake in PepsiCo in the 2nd quarter valued at $31,000. 73.07% of the stock is currently owned by institutional investors.

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company headquartered in Purchase, New York. Its portfolio includes carbonated soft drinks, sports drinks, bottled water, juices, ready-to-drink beverages, snack foods and convenient foods. Major brands include Pepsi, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker and SodaStream.

The company sells products through a broad range of channels, including grocery stores, convenience stores, restaurants, food-service providers, vending operations and e-commerce platforms.