PepsiCo (NASDAQ:PEP) Shares Climb 3.1% – Here’s Why

Shares of PepsiCo, Inc. (NASDAQ:PEP) traded up 3.1% during trading on Thursday. The company traded as high as $139.00 and last traded at $138.83. Approximately 9,364,481 shares were traded during mid-day trading, an increase of 15% from the average session volume of 8,173,290 shares. The stock had previously closed at $134.70.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo renewed its beverage partnership with Taco Bell through 2036, preserving distribution for brands such as Mountain Dew Baja Blast across participating U.S. and select international locations. The agreement also includes collaboration on crafted, functional and energy drinks, providing a multiyear channel for innovation. Taco Bell and PepsiCo partnership renewal
• Positive Sentiment: Options activity was unusually bullish, with traders purchasing about 55,189 call options—roughly 71% above typical volume—suggesting some market participants are positioning for a rebound. Unusual options volume report
• Neutral Sentiment: PepsiCo is closing its Knoxville, Tennessee, bottling plant, affecting more than 120 roles. The move may reduce costs and align capacity with weaker North American soft-drink volumes, but it also highlights current demand pressure. PepsiCo shuts Tennessee bottling plant
• Negative Sentiment: Erste Group Bank lowered its PepsiCo EPS forecasts to $8.39 for fiscal 2026 and $8.60 for fiscal 2027, citing a weaker outlook. The 2026 estimate is near the broader $8.41 consensus, but the revisions reinforce concerns about slowing growth.
• Negative Sentiment: Investors are questioning whether PepsiCo’s roughly 4% dividend yield is adequately covered after the company lowered its earnings outlook. Reports point to thin free-cash-flow coverage, increasing perceived dividend risk.
• Negative Sentiment: CEO Ramon Laguarta sold 30,000 shares for approximately $4.1 million, reducing his holdings by 5.75%. Although insider sales do not necessarily signal a change in business fundamentals, the transaction adds to near-term investor caution.

Analyst Ratings Changes

Several analysts have recently weighed in on PEP shares. Jefferies Financial Group restated a “hold” rating on shares of PepsiCo in a research note on Thursday, October 8th. Freedom Broker raised PepsiCo from a “hold” rating to a “strong-buy” rating in a research report on Saturday, October 10th. Morgan Stanley set a $145.00 price target on PepsiCo in a research note on Friday, October 9th. Royal Bank Of Canada reduced their price target on PepsiCo from $161.00 to $150.00 and set a “sector perform” rating for the company in a report on Tuesday, October 6th. Finally, Weiss Ratings lowered PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, PepsiCo has a consensus rating of “Hold” and a consensus price target of $143.28.

PepsiCo Trading Down 2.2%

The firm has a market cap of $185.02 billion, a P/E ratio of 17.06, a price-to-earnings-growth ratio of 4.15 and a beta of 0.35. The business’s 50 day moving average is $134.05 and its 200-day moving average is $141.53. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90.

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

Insiders Place Their Bets

In other news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the sale, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Ramon Laguarta sold 30,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $135.13, for a total value of $4,053,900.00. Following the completion of the sale, the chief executive officer owned 491,645 shares of the company’s stock, valued at $66,435,988.85. This trade represents a 5.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.12% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PepsiCo

A number of hedge funds have recently added to or reduced their stakes in the business. Core Capital Management & Research inc. bought a new position in shares of PepsiCo in the 2nd quarter valued at approximately $932,000. State Street Corp boosted its position in PepsiCo by 1.7% during the second quarter. State Street Corp now owns 60,406,932 shares of the company’s stock worth $8,179,099,000 after purchasing an additional 987,582 shares during the period. First Nebraska Trust Co bought a new stake in PepsiCo during the first quarter worth approximately $10,782,000. The Manufacturers Life Insurance Company grew its holdings in PepsiCo by 19.0% during the second quarter. The Manufacturers Life Insurance Company now owns 1,110,852 shares of the company’s stock valued at $150,409,000 after purchasing an additional 177,468 shares during the last quarter. Finally, IFM Investors Pty Ltd grew its holdings in PepsiCo by 4.8% during the first quarter. IFM Investors Pty Ltd now owns 273,135 shares of the company’s stock valued at $42,415,000 after purchasing an additional 12,472 shares during 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.