PepsiCo (NASDAQ:PEP) Stock Jumps 3.8% – Here’s What Happened

PepsiCo, Inc. (NASDAQ:PEP) shares traded up 3.8% during trading on Wednesday. The stock traded as high as $143.96 and last traded at $142.42. Approximately 12,075,294 shares traded hands during mid-day trading, an increase of 47% from the average session volume of 8,204,689 shares. The stock had previously closed at $137.27.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s snack pricing and affordability initiatives are reportedly helping lift volumes and consumer demand, suggesting its strategy may be supporting sales growth. Rising costs could limit the benefit to earnings. Can PepsiCo’s Snack Pricing Strategy Drive Volume Growth?
• Positive Sentiment: PepsiCo renewed and expanded its exclusive beverage partnership with Taco Bell, including broader distribution and plans for new functional and energy-drink offerings. The deal could support brand visibility and sales, though the financial impact is not quantified. What Is PepsiCo Gaining From Its Expanded Beverage Partnership?
• Neutral Sentiment: A comparison of PepsiCo and Clorox notes improving organic sales growth at PepsiCo but a sluggish earnings recovery. That points to better sales momentum, while signaling that stronger earnings growth remains an investor concern. Clorox vs. PepsiCo: Which Dividend Stock Could Make You Richer Over the Next 10 Years?
• Negative Sentiment: India’s food safety regulator accused PepsiCo and Monster of using an “energy drink” label in a way it says misled consumers. The allegations raise potential regulatory and reputational concerns; the articles provided do not specify any penalties or final findings. India says PepsiCo, Monster marketed with ‘energy drink’ label to dupe consumers
• Negative Sentiment: Reports highlighting rising costs and margin pressure reinforce the risk that volume gains may not translate into stronger profits. Separate coverage questioning the growth outlook for prebiotic soda following a Poppi reassessment adds uncertainty around that category’s prospects. PepsiCo’s Poppi devaluation raises questions about prebiotic soda’s next chapter

Analysts Set New Price Targets

Several brokerages have recently weighed in on PEP. Evercore cut their price objective on shares of PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Jefferies Financial Group restated a “hold” rating on shares of PepsiCo in a report on Thursday, October 8th. Morgan Stanley set a $145.00 price target on shares of PepsiCo in a research report on Friday, October 9th. Citigroup reaffirmed a “buy” rating on shares of PepsiCo in a research note on Friday, October 9th. Finally, Royal Bank Of Canada decreased their price target on shares of PepsiCo from $161.00 to $150.00 and set a “sector perform” rating on the stock in a report on Tuesday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, PepsiCo presently has a consensus rating of “Hold” and an average target price of $143.28.

PepsiCo Price Performance

The stock has a market cap of $194.19 billion, a PE ratio of 17.90, a price-to-earnings-growth ratio of 4.19 and a beta of 0.31. 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 company’s fifty day moving average is $133.28 and its 200 day moving average is $145.82.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $24.95 billion. During the same period in the previous year, the firm earned $2.29 earnings per share. PepsiCo’s revenue for the quarter was up 5.6% on a year-over-year basis. As a group, sell-side analysts anticipate that PepsiCo, Inc. will post 8.39 earnings per share for the current fiscal year.

Insider Buying and Selling at PepsiCo

In related news, CEO Ramon Laguarta sold 30,000 shares of the company’s stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $135.13, for a total transaction of $4,053,900.00. Following the completion of the sale, the chief executive officer directly owned 491,645 shares of the company’s stock, valued at approximately $66,435,988.85. This represents a 5.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robert Pohlad purchased 184,646 shares of the stock in a transaction that occurred on Wednesday, October 14th. The stock was bought at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the acquisition, the director owned 433,009 shares in the company, valued at $55,546,394.52. This represents a 74.35% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On PepsiCo

Large investors have recently modified their holdings of the stock. Evergreen Advisors LLC purchased a new stake in PepsiCo during the 1st quarter worth $25,000. Montgomery Financial Services LLC acquired a new stake in shares of PepsiCo during the second quarter valued at about $25,000. Next Level Wealth Planning LLC acquired a new stake in shares of PepsiCo during the third quarter valued at about $26,000. Atlatl Advisers LLC acquired a new position in shares of PepsiCo in the second quarter worth about $31,000. Finally, Osterweis Capital Management Inc. purchased a new position in PepsiCo in the second quarter valued at about $31,000. 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.