Procter & Gamble (PG) Shares Gap Up After Strong Earnings

Shares of Procter & Gamble Co (NYSE:PG) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $86.70, but opened at $90.44. Procter & Gamble shares last traded at $94.84, with a volume of 22476295 shares changing hands.

The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.21 by $0.04. The firm had revenue of $17.44 billion for the quarter, compared to the consensus estimate of $17.16 billion. Procter & Gamble had a net margin of 15.10% and a return on equity of 21.20%. The business’s quarterly revenue was up .2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.19 EPS.

The business also recently declared a quarterly dividend, which will be paid on Friday, February 15th. Stockholders of record on Friday, January 18th will be issued a dividend of $0.7172 per share. This represents a $2.87 dividend on an annualized basis and a dividend yield of 3.02%. The ex-dividend date of this dividend is Thursday, January 17th. Procter & Gamble’s payout ratio is presently 68.01%.



A number of equities analysts recently issued reports on the stock. Goldman Sachs Group set a $95.00 price objective on shares of Procter & Gamble and gave the stock a “neutral” rating in a report on Wednesday. Zacks Investment Research raised shares of Procter & Gamble from a “hold” rating to a “buy” rating and set a $102.00 price objective on the stock in a report on Monday. Evercore ISI assumed coverage on shares of Procter & Gamble in a report on Thursday, January 10th. They issued an “outperform” rating and a $105.00 price objective on the stock. Bank of America reissued a “buy” rating and issued a $108.00 price objective on shares of Procter & Gamble in a report on Tuesday, January 8th. Finally, Barclays reissued a “hold” rating and issued a $89.00 price objective on shares of Procter & Gamble in a report on Tuesday, January 8th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. Procter & Gamble presently has a consensus rating of “Hold” and an average price target of $93.21.

In other Procter & Gamble news, CEO David S. Taylor sold 16,338 shares of the firm’s stock in a transaction that occurred on Friday, November 16th. The shares were sold at an average price of $94.62, for a total transaction of $1,545,901.56. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Juan Fernando Posada sold 1,068 shares of the firm’s stock in a transaction that occurred on Friday, November 30th. The stock was sold at an average price of $93.66, for a total transaction of $100,028.88. Following the sale, the insider now owns 26,739 shares in the company, valued at approximately $2,504,374.74. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 502,927 shares of company stock worth $46,437,282. 1.84% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Biechele Royce Advisors raised its position in shares of Procter & Gamble by 1,682.3% during the second quarter. Biechele Royce Advisors now owns 120,824 shares of the company’s stock valued at $6,781,000 after buying an additional 114,045 shares during the last quarter. Sumitomo Life Insurance Co. raised its position in shares of Procter & Gamble by 4.2% during the second quarter. Sumitomo Life Insurance Co. now owns 71,213 shares of the company’s stock valued at $5,559,000 after buying an additional 2,872 shares during the last quarter. Farmers & Merchants Investments Inc. raised its position in shares of Procter & Gamble by 1.2% during the second quarter. Farmers & Merchants Investments Inc. now owns 146,260 shares of the company’s stock valued at $11,417,000 after buying an additional 1,681 shares during the last quarter. Cliftonlarsonallen Wealth Advisors LLC raised its position in shares of Procter & Gamble by 5.6% during the second quarter. Cliftonlarsonallen Wealth Advisors LLC now owns 12,539 shares of the company’s stock valued at $979,000 after buying an additional 661 shares during the last quarter. Finally, Delta Asset Management LLC TN raised its position in shares of Procter & Gamble by 0.4% during the second quarter. Delta Asset Management LLC TN now owns 277,027 shares of the company’s stock valued at $21,625,000 after buying an additional 1,001 shares during the last quarter. Institutional investors own 58.71% of the company’s stock.

The stock has a market cap of $230.47 billion, a PE ratio of 22.47, a P/E/G ratio of 2.97 and a beta of 0.38. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.62 and a current ratio of 0.80.

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About Procter & Gamble (NYSE:PG)

The Procter & Gamble Company provides branded consumer packaged goods to consumers in North America, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company operates in five segments: Beauty; Grooming; health Care; fabric & Home Care; and Baby, Feminine & Family Care.

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