PepsiCo (NASDAQ:PEP) Shares Climb 2.7% – Here’s Why

Shares of PepsiCo, Inc. (NASDAQ:PEP) rose 2.7% during trading on Friday. The company traded as high as $138.59 and last traded at $137.34. 19,394,277 shares were traded during trading, an increase of 137% from the average session volume of 8,182,100 shares. The stock had previously closed at $133.79.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Quarterly results exceeded expectations. Third-quarter revenue rose 5.6% year over year to $25.27 billion, topping consensus, while core earnings per share of $2.34 also beat estimates. Organic revenue growth accelerated to 3.1%. Why PepsiCo (PEP) Stock Is Up Today
• Positive Sentiment: Operating trends showed improvement. PepsiCo reported organic volume growth across global beverages and convenient foods, broad strength in international markets, and sequential improvement in North American foods. Its updated outlook calls for approximately 6% net revenue growth and about 3% organic revenue growth in 2026. Why PepsiCo (PEP) Stock Is Up Today
• Positive Sentiment: Income appeal remains a supporting factor. Analysts and investment commentary continue to highlight PepsiCo’s dividend, which offers a yield above 4%, as well as the defensive nature of its combined beverage-and-snacks portfolio. Why Is PepsiCo Stock Falling, and Is It a Buying Opportunity?
• Neutral Sentiment: Valuation and positioning could attract buyers. PEP trades well below its 52-week high, and the median analyst price target cited is $168 versus a recent share price near $137. However, institutional ownership data showed both significant additions and reductions, indicating mixed conviction.
• Negative Sentiment: Profit guidance was reduced. PepsiCo cut its 2026 core constant-currency EPS growth forecast to 1%–2%, down from the low end of its prior 4%–6% range. The downgrade reflects continuing pressure on margins and profitability despite firmer revenue expectations. PepsiCo stock outlook cut as North American reset deepens
• Negative Sentiment: North America remains the key risk. PepsiCo has cut prices by as much as 15% to win back price-sensitive consumers, raising questions about pricing power and future margins. The stock also remains below its 200-day moving average, reflecting investors’ caution about the recovery.

Analysts Set New Price Targets

PEP has been the subject of several research reports. Piper Sandler cut their price objective on PepsiCo from $176.00 to $140.00 and set an “overweight” rating for the company in a research report on Friday, October 9th. Morgan Stanley set a $145.00 price objective on PepsiCo in a report on Friday, October 9th. Evercore decreased their price target on PepsiCo from $150.00 to $135.00 in a research note on Wednesday, September 30th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $132.00 target price on shares of PepsiCo in a report on Friday, October 9th. Finally, BNP Paribas Exane reduced their price objective on PepsiCo from $161.00 to $157.00 and set an “outperform” rating on the stock in a research note on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $143.28.

PepsiCo Stock Performance

The company has a 50-day moving average price of $133.59 and a 200-day moving average price of $145.89. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. The firm has a market capitalization of $187.16 billion, a price-to-earnings ratio of 17.25, a P/E/G ratio of 3.96 and a beta of 0.35.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Wednesday, October 7th. The company reported $2.34 EPS for the quarter, beating the consensus estimate of $2.29 by $0.05. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The business had revenue of $25.27 billion during the quarter, compared to the consensus estimate of $24.95 billion. During the same period in the prior year, the business posted $2.29 earnings per share. PepsiCo’s revenue was up 5.6% compared to the same quarter last year. As a group, equities research analysts forecast that PepsiCo, Inc. will post 8.39 earnings per share for the current year.

Insider Transactions at PepsiCo

In other PepsiCo news, Director Robert C. Pohlad purchased 184,646 shares of the company’s stock in a transaction on Wednesday, October 14th. The shares were bought at an average cost of $128.28 per share, with a total value of $23,686,388.88. Following the transaction, the director directly owned 433,009 shares in the company, valued at approximately $55,546,394.52. This represents a 74.35% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Ramon Laguarta sold 30,000 shares of the business’s stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the transaction, the chief executive officer directly owned 491,645 shares in the company, valued at $66,435,988.85. This trade represents a 5.75% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.12% of the stock is owned by insiders.

Hedge Funds Weigh In On PepsiCo

Several large investors have recently added to or reduced their stakes in the company. Wilkerson Advisory Group LLC grew its stake in shares of PepsiCo by 3.3% during the 1st quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company’s stock valued at $317,000 after acquiring an additional 66 shares during the period. Pittenger & Anderson Inc. lifted its position in shares of PepsiCo by 0.3% in the first quarter. Pittenger & Anderson Inc. now owns 24,895 shares of the company’s stock valued at $3,866,000 after acquiring an additional 69 shares in the last quarter. Burford Brothers Inc. grew its position in shares of PepsiCo by 2.1% during the first quarter. Burford Brothers Inc. now owns 3,416 shares of the company’s stock worth $531,000 after purchasing an additional 70 shares in the last quarter. Cohen Investment Advisors LLC lifted its holdings in PepsiCo by 1.9% in the 1st quarter. Cohen Investment Advisors LLC now owns 3,770 shares of the company’s stock worth $585,000 after purchasing an additional 71 shares in the last quarter. Finally, Bogart Wealth LLC grew its holdings in PepsiCo by 2.1% during the 1st quarter. Bogart Wealth LLC now owns 3,526 shares of the company’s stock valued at $548,000 after buying an additional 72 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.