Shares are eyeing their third daily loss in four sessions
Jefferies downgraded PepsiCo Inc (NASDAQ:PEP) stock to "hold" from "buy," and cut its price target to $170 from $171. The analyst in coverage cited limited upside potential amid a soft beverages market.
Analysts were divided on PEP coming into today, with 10 calling it a tepid "hold" or worse, while 10 said "strong buy." Should more firms swing to the bearish side, the security could dip even lower.
The shares are on track for their third loss in the last four sessions, and have fallen more than 15% in the last six months. A ceiling at the $160 region has rejected the last three rally attempts off a retest of the stock's Jan. 10, four-year low of $141.51, while today's dip is pressuring the stock back below the 20-day moving average.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PepsiCo stock sports a 10-day put/call volume ratio of 6.95 that sits higher than all annual readings. This means options traders have been much more bullish than usual in the last two weeks.
It's worth noting that PEP's Schaeffer's Volatility Scorecard (SVS) of 71 out of 100 indicates it tends to outperform volatility expectations, making it an interesting play for premium buyers.