Procter & Gamble Stock Increases 1.2% - Is It a Good Time to Buy?

The Procter & Gamble Company (NYSE:PG) saw its share price rise by 1.2% during mid-day trading on Monday. The stock reached a high of $169.38 before settling last at $167.98. A total of approximately 2,446,988 shares were traded, which is a significant decline of 66% compared to the average daily volume of 7,113,268 shares. In the previous trading session, the stock had closed at $165.99.

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Recent Analyst Updates on Procter & Gamble

Several research analysts have recently shared their insights regarding Procter & Gamble’s stock. DA Davidson reaffirmed a "buy" rating and set a target price of $209.00 for the shares. On the same day, Barclays raised their target from $155.00 to $159.00, maintaining an "equal weight" rating. However, JPMorgan Chase downgraded their price target from $186.00 to $181.00 but still categorized it as "overweight". Stifel Nicolaus also revised their target price upward from $161.00 to $165.00, rating the stock as a "hold". Lastly, Evercore ISI increased their price target from $180.00 to $183.00, giving it an "outperform" rating. The consensus among analysts indicates eight hold ratings, thirteen buy ratings, and two strong buy ratings. Currently, the average consensus rating for Procter & Gamble is "Moderate Buy" with an average target price of $180.53.

Procter & Gamble Stock Performance

The company’s fifty-day moving average is noted to be $168.34, while the 200-day moving average stands at $169.41. Procter & Gamble boasts a market capitalization of $396.05 billion, with a price-to-earnings (P/E) ratio of 26.90, a P/E to growth (P/E/G) ratio of 3.73, and a beta value of 0.45. Financial ratios indicate a current ratio of 0.76, a quick ratio of 0.55, and a debt-to-equity ratio of 0.50.

On January 22, Procter & Gamble reported its earnings results, revealing an earnings per share (EPS) of $1.88 for the quarter, surpassing the consensus estimate of $1.86 by $0.02. The company recorded revenues of $21.88 billion, exceeding expectations of $21.66 billion. With a net margin of 18.35% and a return on equity of 33.00%, the company’s revenues were up by 2.1% year-over-year. Last year during the same period, the EPS was recorded at $1.84. Analysts predict that Procter & Gamble will achieve an EPS of 6.91 for the current year.

Dividend Information

Procter & Gamble recently announced a quarterly dividend, which is scheduled to be paid on February 18. Stockholders recorded by January 24 will receive a dividend of $1.0065 per share, amounting to an annualized dividend of $4.03, which reflects a dividend yield of 2.38%. The ex-dividend date is set for January 24, and the company currently has a payout ratio of 64.17%.

Insider Trading Activity

Recent insider transactions have also caught attention. Balaji Purushothaman, an insider, sold 12,800 shares of stock on November 21, at an average price of $172.73, bringing a total value to approximately $2,210,944. Following this transaction, Balaji’s holding decreased by 52.47%. In another transaction, CEO Gary A. Coombe sold 47,847 shares on November 27 at an average price of $179.84, totaling about $8,604,804.48, which represents a 54.48% reduction in his stake. In total, insiders sold 151,097 shares worth $25,635,076 in the last quarter, with insider ownership currently standing at 0.18%.

Institutional Investment Updates

There have been adjustments in institutional investments as well. AMF Tjanstepension AB notably increased its holdings in Procter & Gamble by 416.1% in the third quarter, acquiring an additional 1,466,115 shares, raising its total to 1,818,490 shares valued at $315,016,000. Similarly, Czech National Bank increased its position by 6.6%, while GAMMA Investing LLC raised its position by 32.3%. Other firms, including WealthBridge Capital Management LLC and Azzad Asset Management Inc. ADV, have also made adjustments to their investments in Procter & Gamble. Overall, approximately 65.77% of the stock is currently owned by institutional investors.

Company Overview

Procter & Gamble Co is a leading company in providing branded consumer packaged goods. The company operates across multiple segments, including Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment includes products related to hair, skin, and personal care, while the Grooming segment consists of male and female shaving products and grooming appliances.

Conclusion: Should You Consider Investing?

Before making an investment decision regarding Procter & Gamble, potential investors should look closely at current analyst ratings and market conditions. While analysts have given it a "Moderate Buy" rating, there may be other stocks that could offer better prospects at this time.

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