PepsiCo Stock Sinks on Heels of $3.85 Billion Buyout

PepsiCo Inc's stocks are down after the company bought Rockstar Energy Beverage

Shares of PepsiCo Inc. (NYSE:PEP) are down 3.5% today, last seen trading at $130.66,after the company confirmed it had acquired Rockstar Energy Beverage in a $3.85 billion deal. The food and beverage giant has had a distribution deal with Rockstar since 2009, and while Rockstar's products are available in over 30 countries, the new deal will add to PepsiCo's energy drink portfolio that already includes Mountain Dew's Kickstart, GameFuel, and more.

PEP has found support in its 320-day moving average for the first time since early last year. The stock just last month touched a record high of $147.20, but is now down 4.4% year-to-date.

Analysts have yet to response to the acquisition, but heading into today, of the 12 covering PepsiCo, six sport a "hold" recommendation, while the remaining say it's a "strong buy." Additionally, the 12-month average price target of PEP's stock is 12.1% above current levels.