PepsiCo Sees Unusually High Options Volume (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) was the recipient of unusually large options trading on Friday. Stock investors bought 45,880 call options on the stock. This is an increase of approximately 70% compared to the typical volume of 26,922 call options.

PepsiCo Price Performance

Shares of PEP opened at $136.64 on Friday. The business has a 50-day moving average of $142.11 and a 200-day moving average of $150.93. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. The company has a market capitalization of $186.50 billion, a price-to-earnings ratio of 17.91, a price-to-earnings-growth ratio of 2.96 and a beta of 0.36. PepsiCo has a 1 year low of $133.73 and a 1 year high of $171.48.

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

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s dividend payout ratio is currently 77.59%.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on PEP. Citigroup lowered shares of PepsiCo from a “buy” rating to a “neutral” rating and decreased their price target for the company from $170.00 to $145.00 in a report on Friday, July 10th. JPMorgan Chase & Co. decreased their target price on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 1st. Barclays upped their price target on shares of PepsiCo from $138.00 to $142.00 and gave the stock an “equal weight” rating in a report on Tuesday. Morgan Stanley cut their price objective on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a report on Friday, July 10th. Finally, The Goldman Sachs Group upped their target price on PepsiCo from $180.00 to $183.00 and gave the stock a “buy” rating in a report on Friday, April 17th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $157.90.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investors bought an unusually large number of PepsiCo call options, with call volume running about 70% above average, signaling bullish trading activity and expectations for upside.
• Positive Sentiment: News that Quaker Oats plans a major expansion at PepsiCo’s North Texas facility could be viewed as a long-term growth and capacity positive. PepsiCo’s Quaker Oats plans major expansion at its North Texas facility
• Neutral Sentiment: PepsiCo is still trading near the lower end of its 52-week range, which reflects recent weakness, but also leaves room for a rebound if sentiment improves.
• Negative Sentiment: Zacks Research trimmed multiple PepsiCo earnings estimates, including FY2026, FY2027, FY2028 and several quarterly forecasts, which may pressure the stock by reinforcing concerns about earnings momentum.
• Negative Sentiment: Reports that PepsiCo will cease warehouse operations at an Oklahoma production site may raise concerns about restructuring or operational disruption. PepsiCo to cease warehouse operations at Oklahoma production site
• Negative Sentiment: One Seeking Alpha article argued PepsiCo should be downgraded to “Sell,” reflecting continued skepticism about the stock’s near-term return potential. PepsiCo: ‘Upgrading’ From Strong Sell To Sell, But I Still Expect Frozen Returns

Hedge Funds Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Evergreen Advisors LLC acquired a new position in shares of PepsiCo in the 1st quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in PepsiCo in the fourth quarter worth approximately $26,000. Swiss RE Ltd. acquired a new position in PepsiCo in the fourth quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new position in shares of PepsiCo during the 4th quarter worth approximately $29,000. Finally, Networth Advisors LLC grew its holdings in PepsiCo by 2,857.1% in the first quarter. Networth Advisors LLC now owns 207 shares of the company’s stock worth $32,000 after purchasing an additional 200 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

About PepsiCo

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.