Procter & Gamble (NYSE:PG) Trading Down 0.1% - Should You Sell?

Procter & Gamble Company (NYSE:PG) experienced a slight decline of 0.1% on Friday, closing at $169.93, after trading as low as $169.26. During the day, around 785,421 shares were exchanged, a significant drop of 88% compared to its average trading volume of 6,701,636 shares. The stock had previously finished at $170.16.

Recent Analyst Insights

Procter & Gamble has garnered attention from several analysts in recent reports. Piper Sandler initiated coverage on the stock, assigning a "neutral" rating with a target price of $174.00. Meanwhile, HSBC Global Research upgraded the shares to a "strong buy" on October 4th. DA Davidson increased its rating from "neutral" to "buy," raising its target price from $160.00 to $209.00 on November 25th. Additionally, Wells Fargo elevated its price target from $188.00 to $190.00, also giving it an "overweight" rating. Finally, JPMorgan Chase boosted its target from $179.00 to $186.00, maintaining an "overweight" stance. MarketBeat data shows that among analysts, eight have a hold rating, fourteen have given a buy rating, and two have a strong buy rating. Currently, the consensus rating for the stock is "Moderate Buy" with an average price target of $180.45.

Current Trading Metrics

The company's 50-day simple moving average stands at $170.51, while the 200-day moving average is $169.81. Procter & Gamble maintains a debt-to-equity ratio of 0.50, a quick ratio of 0.55, and a current ratio of 0.75. Its market capitalization is approximately $399.42 billion, showing a price-to-earnings (PE) ratio of 29.24 and a price-to-earnings-growth (PEG) ratio of 3.70. The stock has a beta of 0.44, indicating lower volatility compared to the broader market.

Financial Performance

For its latest earnings report, Procter & Gamble released figures on October 18th, revealing earnings per share (EPS) of $1.93, surpassing analysts' expectations of $1.90 by $0.03. The company reported a net margin of 17.07% and a return on equity of 33.25%, with total revenue of $21.74 billion—slightly below the consensus estimate of $21.99 billion. Year-over-year, revenue experienced a decline of 0.6%, while EPS in the same period last year was $1.83. Analysts are predicting an EPS of 6.94 for the current fiscal year.

Dividend Information

The company also declared a quarterly dividend recently, which was paid on November 15th. Shareholders with a record on October 18th received a dividend of $1.0065. The ex-dividend date coincided with the record date. This dividend equates to an annualized total of $4.03, translating to a yield of 2.37%. Procter & Gamble's payout ratio currently stands at 69.31%.

Insider Transactions

Recent insider trading has also been noteworthy. CEO R. Alexandra Keith sold 1,992 shares on October 22nd at an average price of $170.00, that totaled $338,640. After this sale, she holds 13,783 shares, valued at around $2.34 million, marking a decrease of 12.63% in her shares. Another sale was made by CEO Jon R. Moeller on October 2nd, who sold 7,007 shares at an average price of $171.65, totaling approximately $1.2 million. Post-sale, he retains 269,172 shares worth roughly $46.20 million, representing a 2.54% decrease. In total, insiders sold 83,080 shares valued at $14.63 million over the last quarter. Currently, corporate insiders own only 0.18% of the company’s stock.

Institutional Holdings

Institutional investors have recently made adjustments to their Procter & Gamble holdings. Forum Financial Management LP raised its stake by 7.4% in Q2, now holding 22,132 shares worth about $3.65 million after adding 1,518 shares. Centerpoint Advisors LLC also increased its investment by 13.1%, owning 1,117 shares valued at $184,000 following the purchase of an additional 129 shares. WMG Financial Advisors LLC increased its holding by 25.6%, while Adero Partners LLC elevated its stake by 5.7%. Lastly, WBI Investments LLC acquired a new investment worth approximately $934,000. Collectively, institutional investors own around 65.77% of Procter & Gamble's shares.

Company Overview

Procter & Gamble operates globally, providing branded consumer packaged goods through various segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The Beauty segment includes hair care products like conditioners and shampoos under brands like Head & Shoulders and Pantene, along with personal care products like deodorants and skin treatment items.

Conclusion

The recent trading activity of Procter & Gamble reflects a minor decline in stock price, which warrants attention from investors. With varying analyst ratings and substantial insider trading, potential investors may question whether now is the right time to buy, hold, or sell their shares.

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