On September 17, 2023, research firm StockNews.com downgraded Procter & Gamble (NYSE:PG) from a “buy” rating to a “hold” rating. This announcement caused the company’s stock to open at $153.46 on Friday. Procter & Gamble has been experiencing fluctuations in its stock value recently, with a 52-week low of $122.18 and a 52-week high of $158.38.
Analysts have pointed out several key factors contributing to this downgrade. One factor is the company’s debt-to-equity ratio of 0.53, which may be viewed as unfavorable by investors. Additionally, the company’s quick ratio of 0.44 and current ratio of 0.63 suggest potential liquidity concerns.
Despite these challenges, Procter & Gamble maintains a strong market capitalization of $361.75 billion and has demonstrated consistent performance over time. The company’s average price-to-earnings-growth ratio stands at 3.81, highlighting its stability within the industry.
In terms of investor sentiment, large investment firms have made notable moves with regards to their stakes in Procter & Gamble recently. Your Advocates Ltd LLP significantly increased its position in the company by 632% during the second quarter while Silicon Valley Capital Partners acquired a new stake in Procter & Gamble during the fourth quarter.
Furthermore, GW&K Investment Management LLC and IAG Wealth Partners LLC both made recent additions to their positions in Procter & Gamble, demonstrating continued confidence in the company despite the downgrade.
Looking at its financial performance, Procter & Gamble reported higher-than-expected earnings per share (EPS) for the most recent quarter ending July 28th, 2023. With an EPS of $1.37 compared to the consensus estimate of $1.32 EPS, investors witnessed positive results.
The company also exceeded revenue expectations, generating $20.60 billion during the quarter compared to analysts’ projections of $20.01 billion. These figures reflect a year-over-year growth rate of 5.6%, indicating a positive trajectory for Procter & Gamble.
Analysts anticipate that Procter & Gamble will continue to perform well, with an estimated EPS of 6.38 for the current fiscal year.
While the recent downgrade by StockNews.com may have affected investor sentiment, it is important to consider the overall financial standing and performance of Procter & Gamble before making investment decisions. Investors should thoroughly analyze the company’s balance sheet, liquidity ratios, and ongoing revenue generation to gain a comprehensive understanding of its current position in the market.
The Procter & Gamble Company
Updated on: 07/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
12:00 PM (UTC)
Date:07 December, 2023
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Procter & Gamble (P&G) continues to receive attention from various research reports and analysts. Royal Bank of Canada recently increased their price objective on P&G shares from $165.00 to $167.00, giving the company a “sector perform” rating. Similarly, JPMorgan Chase & Co. raised their price target on P&G shares from $164.00 to $172.00. Morgan Stanley reiterated an “overweight” rating and set a price objective of $174.00 on P&G shares.
Stifel Nicolaus also revised their price target for P&G upwards, from $155.00 to $161.00, while financial services firm William Blair began covering P&G’s stock with a “market perform” rating, stating that it was a valuation call.
With seven research analysts giving a hold rating and twelve assigning a buy rating to the stock, Bloomberg reports that P&G currently holds a consensus rating of “Moderate Buy”. Furthermore, the average target price for the company’s stock is estimated to be around $164.82.
In terms of recent insider activity, Balaji Purushothaman sold 12,629 shares of P&G stock on August 3rd at an average price of $157.19 per share, resulting in a total transaction value of approximately $1,985,152.51.As per legal filings with the Securities & Exchange Commission (SEC), Purushothaman now owns 13,051 shares valued at around $2,051,486.69.
Moreover, CAO Matthew W. Janzaruk also sold 33,022 shares of the business’s stock on August 1st at an average price of $156.26 per share, totaling around $5,160,017.72 worth of transactions.The chief accounting officer now directly holds 888 shares valued at approximately $138,758.88.
In the last ninety days, insiders have sold a total of 106,607 P&G shares worth approximately $16,523,793. According to reports, corporate insiders now own 0.17% of the company’s stock.
P&G continues to attract attention from analysts and investors alike due to its consistent performance and positive outlook in the consumer goods industry. The company’s dedication to innovation, strong portfolio of trusted brands, and focus on meeting consumer needs have contributed to its long-standing success. Investors and analysts will continue to closely monitor P&G’s future developments as well as any potential impact from insider activity.