Investors Buy Large Volume of Call Options on PepsiCo (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) saw some unusual options trading activity on Thursday. Traders bought 207,631 call options on the company. This is an increase of approximately 680% compared to the typical daily volume of 26,613 call options.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Unusual bullish options activity: traders bought roughly 207,631 PEP call options (a ~680% rise vs. average daily call volume), signaling heavy short‑term bullish/speculative interest that can amplify intraday buying or hedging flows.
• Positive Sentiment: Product innovation — Gatorade launched “Gatorade Lower Sugar” (75% less sugar, no artificial flavors/sweeteners/colors), a nationwide rollout that targets health‑conscious consumers and could support beverage volume over time. GATORADE LOWER SUGAR BRINGS A NEW ERA OF HYDRATION WITH NO ARTIFICIAL FLAVORS, SWEETENERS OR COLORS AND 75% LESS SUGAR THAN GATORADE THIRST QUENCHER
• Positive Sentiment: Analyst/media endorsements for defensive income: PepsiCo is featured in recent lists of consumer‑staples/dividend stocks (e.g., “Top Dividend Aristocrats” and “Consumer‑Staples Stocks to Buy”), which can attract income investors during market volatility and support the share price. Top 3 Dividend Aristocrat Stocks to Buy for Strong Returns in 2026
• Neutral Sentiment: Short interest update was published (AmericanBankingNews). Depending on whether short interest rose or fell, this could modestly affect near‑term volatility; the report itself is informational until it shows a clear trend. PepsiCo, Inc. (NASDAQ:PEP) Short Interest Update
• Negative Sentiment: Litigation/investor‑alert: Scott+Scott attorneys announced an investigation into PepsiCo’s directors and officers for alleged breach of fiduciary duties — a headline that can weigh on sentiment, raise governance concerns, and create legal/settlement risk. PEPSICO, INC. INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates PepsiCo, Inc.’s Directors and Officers for Breach of Fiduciary Duties — PEP

Wall Street Analysts Forecast Growth

PEP has been the subject of a number of recent analyst reports. Morgan Stanley boosted their price target on shares of PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Rothschild & Co Redburn boosted their target price on PepsiCo from $120.00 to $130.00 and gave the company a “sell” rating in a research report on Tuesday, February 10th. BNP Paribas Exane set a $191.00 price target on PepsiCo in a research report on Wednesday, February 4th. Royal Bank Of Canada lifted their price objective on PepsiCo from $156.00 to $165.00 and gave the company a “sector perform” rating in a research note on Monday. Finally, Evercore increased their target price on PepsiCo from $152.00 to $165.00 in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo currently has an average rating of “Hold” and an average target price of $168.50.

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $160.70 on Friday. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The company has a market cap of $219.62 billion, a price-to-earnings ratio of 26.78, a price-to-earnings-growth ratio of 3.14 and a beta of 0.39. The stock’s 50-day moving average is $154.73 and its two-hundred day moving average is $149.25. PepsiCo has a 1-year low of $127.60 and a 1-year high of $171.48.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings data on Monday, February 2nd. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The business had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion. During the same quarter last year, the business posted $1.96 EPS. The business’s quarterly revenue was up 5.6% compared to the same quarter last year. Analysts forecast that PepsiCo will post 8.3 EPS for the current fiscal year.

PepsiCo Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be issued a $1.4225 dividend. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Friday, March 6th. PepsiCo’s dividend payout ratio (DPR) is presently 94.83%.

PepsiCo announced that its Board of Directors has authorized a share buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Institutional Trading of PepsiCo

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in PepsiCo by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock worth $19,875,205,000 after purchasing an additional 1,612,652 shares during the last quarter. State Street Corp raised its holdings in PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock worth $8,356,155,000 after purchasing an additional 1,079,970 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of PepsiCo by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company’s stock worth $4,814,835,000 after buying an additional 360,936 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of PepsiCo by 9.7% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company’s stock valued at $3,833,406,000 after buying an additional 2,556,163 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of PepsiCo in the 4th quarter valued at $3,018,813,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Company Profile

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.