Procter & Gamble (NYSE:PG) Shares Up 3.1% Following Earnings Beat

The Procter & Gamble Company (NYSE:PG)’s share price shot up 3.1% on Wednesday following a stronger than expected earnings report. The company traded as high as $168.14 and last traded at $166.70. 5,274,784 shares were traded during mid-day trading, a decline of 27% from the average session volume of 7,221,799 shares. The stock had previously closed at $161.72.

The company reported $1.88 earnings per share for the quarter, beating analysts’ consensus estimates of $1.86 by $0.02. Procter & Gamble had a net margin of 17.07% and a return on equity of 33.25%. The firm had revenue of $21.88 billion for the quarter, compared to analyst estimates of $21,657,595.49 billion. During the same quarter in the previous year, the firm posted $1.84 EPS. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year.

Procter & Gamble Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 18th. Stockholders of record on Friday, January 24th will be issued a dividend of $1.0065 per share. This represents a $4.03 dividend on an annualized basis and a dividend yield of 2.45%. The ex-dividend date of this dividend is Friday, January 24th. Procter & Gamble’s dividend payout ratio (DPR) is presently 69.48%.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Stifel Nicolaus lowered their price target on shares of Procter & Gamble from $167.00 to $161.00 and set a “hold” rating for the company in a research report on Friday, January 17th. DA Davidson reiterated a “buy” rating and set a $209.00 target price on shares of Procter & Gamble in a report on Friday, December 27th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $164.00 price target on shares of Procter & Gamble in a research note on Monday, October 21st. Evercore ISI increased their price target on shares of Procter & Gamble from $180.00 to $183.00 and gave the company an “outperform” rating in a report on Monday, October 21st. Finally, Barclays decreased their price objective on shares of Procter & Gamble from $163.00 to $155.00 and set an “equal weight” rating for the company in a report on Friday, January 17th. Eight analysts have rated the stock with a hold rating, fourteen have given a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $179.65.

Insiders Place Their Bets

In related news, CEO Gary A. Coombe sold 47,847 shares of the stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $179.84, for a total value of $8,604,804.48. Following the completion of the sale, the chief executive officer now directly owns 39,977 shares of the company’s stock, valued at approximately $7,189,463.68. This represents a 54.48 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Balaji Purushothaman sold 12,800 shares of the company’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $172.73, for a total transaction of $2,210,944.00. Following the completion of the transaction, the insider now owns 11,595 shares of the company’s stock, valued at approximately $2,002,804.35. The trade was a 52.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.18% of the company’s stock.

Institutional Investors Weigh In On Procter & Gamble

A number of institutional investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC boosted its stake in Procter & Gamble by 7.0% during the third quarter. Geode Capital Management LLC now owns 55,204,776 shares of the company’s stock valued at $9,538,327,000 after buying an additional 3,619,466 shares during the last quarter. FMR LLC raised its holdings in shares of Procter & Gamble by 2.7% during the 3rd quarter. FMR LLC now owns 26,556,319 shares of the company’s stock worth $4,599,554,000 after acquiring an additional 689,282 shares in the last quarter. Legal & General Group Plc boosted its position in shares of Procter & Gamble by 0.6% during the 2nd quarter. Legal & General Group Plc now owns 21,632,054 shares of the company’s stock valued at $3,567,556,000 after acquiring an additional 122,190 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of Procter & Gamble by 10.2% in the third quarter. Franklin Resources Inc. now owns 18,988,721 shares of the company’s stock valued at $3,290,573,000 after purchasing an additional 1,760,214 shares in the last quarter. Finally, Fisher Asset Management LLC increased its position in Procter & Gamble by 4.7% in the third quarter. Fisher Asset Management LLC now owns 18,380,610 shares of the company’s stock worth $3,183,522,000 after purchasing an additional 830,476 shares during the last quarter. 65.77% of the stock is owned by hedge funds and other institutional investors.

Procter & Gamble Trading Up 1.8 %

The company has a market cap of $387.56 billion, a PE ratio of 28.37, a P/E/G ratio of 3.63 and a beta of 0.45. The stock’s 50 day moving average is $169.01 and its 200-day moving average is $169.41. The company has a quick ratio of 0.55, a current ratio of 0.75 and a debt-to-equity ratio of 0.50.

About Procter & Gamble

Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.