PEP Stock Lower After FTC Approves $3.85 Billion Deal

The company plans on absorbing Rockstar Energy later this week

Lillian Currens

Digital Content Manager

Apr 20, 2020 at 9:46 AM

The shares of PepsiCo, Inc (NASDAQ:PEP) are down 1% at $136.20 on news that the Federal Trade Commission (FTC) approved the food and beverage company's plan to acquire Rockstar Energy in a $3.85 billion deal. The acquisition, which was announced last month, is expected to go into effect later this week.

Pepsi has spent April climbing back up the charts. The 320-day moving average provided recent support after PEP toppled the trendline earlier this month, closing its March 12 bear gap below the region. Now, the stock is trading just below its year-to-date breakeven.

The majority of analysts are optimistic over PEP, with 10 saying "buy" or better, compared to just five "hold" ratings. The consensus 12-month price target of $139.18 is right in line with Friday's close.

Short interest is continuing to roll down from its early 2020 peak, off 12.2% in the most recent reporting period. Now the 10.5 million shares sold short represent less than 1% of PEP's available float.

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