Procter & Gamble (NYSE:PG) Hits New 52-Week High – Time to Buy?

Procter & Gamble Company (The) (NYSE:PG) shares reached a new 52-week high on Friday. The company traded as high as $170.68 and last traded at $170.5390, with a volume of 1,655,347 shares changing hands. The stock had previously closed at $168.03.

Latest Procter & Gamble News

These are some of the PG news items that stood out recently:

• Positive Sentiment: P&G reported quarterly earnings of $2.00 per share, above the $1.89 consensus, and revenue of $23.28 billion, ahead of estimates and up 4% year over year. The latest commentary also points to volume-led growth as a potential support for performance. Article: Procter & Gamble Has Raised Its Dividend for 70 Straight Years
• Positive Sentiment: The company declared a quarterly dividend of $1.0885 per share, equivalent to about $4.35 annually and a 2.6% yield. Its 70-year record of dividend increases may continue to attract income-focused investors. Article: Procter & Gamble Has Raised Its Dividend for 70 Straight Years
• Negative Sentiment: Higher oil and other commodity costs, alongside shrinking margins, could weigh on profitability and challenge the rally. CEO El Hak Hesham Abd also sold 2,250 shares at $168.47, reducing his direct holding by about 20%; the sale may concern investors, though it does not by itself signal a change in the business outlook. Article: Procter & Gamble CEO Sells 2,250 Shares

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on PG shares. BNP Paribas Exane upped their price objective on shares of Procter & Gamble from $177.00 to $189.00 and gave the stock an “outperform” rating in a research report on Friday, October 23rd. JPMorgan Chase & Co. raised their target price on Procter & Gamble from $162.00 to $180.00 and gave the company an “overweight” rating in a research report on Friday, October 23rd. Citigroup lifted their price target on Procter & Gamble from $180.00 to $187.00 and gave the company a “buy” rating in a research note on Friday, October 23rd. Deutsche Bank reaffirmed a “buy” rating on shares of Procter & Gamble in a report on Friday, October 23rd. Finally, Freedom Broker upgraded Procter & Gamble from a “hold” rating to a “buy” rating and set a $176.00 price target on the stock in a research report on Friday, October 23rd. Fifteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $170.57.

Procter & Gamble Trading Up 1.2%

The company’s fifty day simple moving average is $153.80 and its 200-day simple moving average is $149.82. The firm has a market capitalization of $394.21 billion, a PE ratio of 25.63, a P/E/G ratio of 4.12 and a beta of 0.36. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.72 and a quick ratio of 0.53.

Procter & Gamble (NYSE:PG) last released its earnings results on Thursday, October 22nd. The company reported $2.00 EPS for the quarter, topping analysts’ consensus estimates of $1.89 by $0.11. Procter & Gamble had a net margin of 18.23% and a return on equity of 31.02%. The business had revenue of $23.28 billion during the quarter, compared to analysts’ expectations of $22.80 billion. During the same quarter in the previous year, the company earned $1.99 earnings per share. The company’s quarterly revenue was up 4.0% on a year-over-year basis. As a group, sell-side analysts expect that Procter & Gamble Company will post 6.99 earnings per share for the current fiscal year.

Procter & Gamble Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Friday, October 23rd will be issued a $1.0885 dividend. This represents a $4.35 annualized dividend and a yield of 2.6%. The ex-dividend date is Friday, October 23rd. Procter & Gamble’s payout ratio is presently 65.51%.

Insider Activity at Procter & Gamble

In other news, CEO Juliana Azevedo sold 5,370 shares of the firm’s stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $169.00, for a total value of $907,530.00. Following the transaction, the chief executive officer owned 21,361 shares in the company, valued at $3,610,009. This trade represents a 20.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Hesham Tohamy Abd El Hak sold 2,250 shares of Procter & Gamble stock in a transaction that occurred on Thursday, November 12th. The stock was sold at an average price of $168.47, for a total value of $379,057.50. Following the completion of the sale, the chief executive officer directly owned 8,968 shares in the company, valued at $1,510,838.96. This represents a 20.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 200,006 shares of company stock worth $32,715,058 in the last quarter. Corporate insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PG. BlackRock Inc. acquired a new stake in Procter & Gamble during the 2nd quarter worth $27,862,105,000. Bank of America Corp DE acquired a new stake in shares of Procter & Gamble in the second quarter valued at about $3,850,628,000. Bank of New York Mellon Corp purchased a new position in shares of Procter & Gamble in the second quarter worth about $2,281,505,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Procter & Gamble in the second quarter worth about $1,480,650,000. Finally, Corient Private Wealth LP purchased a new position in shares of Procter & Gamble in the second quarter worth about $335,908,000. 65.77% of the stock is owned by institutional investors and hedge funds.

About Procter & Gamble

The Procter & Gamble Company is a consumer goods company that develops, manufactures and markets products for everyday use. Founded in 1837 by William Procter and James Gamble, the company is headquartered in Cincinnati, Ohio. Its products span beauty, grooming, health care, fabric and home care, and baby, feminine and family care. Well-known brands include Tide, Pampers, Gillette, Pantene, Olay, Oral-B, Crest, Dawn, Charmin and Bounty. Procter & Gamble sells its products in markets around the world through retail stores, e-commerce platforms and other distribution channels.