Pepsi Stock Jumps as Elliott Investment Takes $4 Billion Stake

Group 1 - PepsiCo Inc's stock rose 3.6% to $153.97 following news that Elliott Investment Management acquired a $4 billion stake, indicating a potential turnaround opportunity [1] - The stock has been recovering since hitting a five-year low of $127.60 on June 26, marking its largest single-day percentage gain since a 3.8% increase in April [2] - Despite recent gains, the stock is still down 11.2% year-over-year, although it has achieved three consecutive monthly gains [2] Group 2 - Options trading activity has surged, with 13,000 calls and 7,450 puts exchanged, indicating heightened interest in the stock [3] - The most popular options include the September 160 call and the weekly 10/10 150-strike put, with new positions being opened in the latter [3] - The current put/call open interest ratio for PepsiCo is 1.02, ranking in the 74th percentile of annual readings, suggesting a recent preference for puts among short-term traders [3] Group 3 - The majority of analysts maintain a bearish outlook on PepsiCo, with 15 out of 21 brokerages rating it as "hold" or worse, leaving potential for upgrades if Elliott's turnaround efforts are successful [4]