Procter & Gamble (NYSE:PG) Rating Lowered to "Hold" at DZ Bank

Key Points

• DZ Bank downgraded Procter & Gamble to “Hold” from “Strong Buy,” while the broader analyst consensus remains “Moderate Buy” with a $170.57 target price.
• P&G exceeded quarterly expectations, reporting $2.00 in EPS versus $1.89 expected and $23.28 billion in revenue versus $22.80 billion, with revenue up 4% year over year.
• Shares opened at $158.38, near the consensus target, while recent insider selling and potential pressure from higher commodity and transportation costs could weigh on investor sentiment.

Procter & Gamble (NYSE:PG - Get Free Report) was downgraded by stock analysts at DZ Bank from a "strong-buy" rating to a "hold" rating in a report released on Tuesday, Zacks reports.

A number of other equities analysts have also recently issued reports on PG. Weiss Ratings reiterated a "hold (c)" rating on shares of Procter & Gamble in a report on Monday, September 21st. The Goldman Sachs Group restated a "neutral" rating and set a $161.00 price objective on shares of Procter & Gamble in a report on Thursday, October 22nd. UBS Group set a $166.00 price objective on shares of Procter & Gamble in a research note on Friday, October 23rd. Barclays lifted their price objective on shares of Procter & Gamble from $152.00 to $165.00 and gave the company an "equal weight" rating in a report on Monday. Finally, BNP Paribas Exane boosted their target price 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. Fifteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $170.57.

Procter & Gamble Stock Performance

Shares of Procter & Gamble stock opened at $158.38 on Tuesday. Procter & Gamble has a one year low of $137.62 and a one year high of $167.25. The firm has a market capitalization of $367.10 billion, a price-to-earnings ratio of 23.85, a PEG ratio of 4.00 and a beta of 0.39. The business has a 50-day simple moving average of $149.30 and a 200 day simple moving average of $148.76. 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 - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The company reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.89 by $0.11. Procter & Gamble had a return on equity of 31.02% and a net margin of 18.23%. The business had revenue of $23.28 billion for the quarter, compared to analyst estimates of $22.80 billion. During the same quarter in the prior year, the company earned $1.99 earnings per share. The company's quarterly revenue was up 4.0% on a year-over-year basis. On average, research analysts anticipate that Procter & Gamble will post 6.98 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Balaji Purushothaman sold 4,181 shares of the firm's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $160.71, for a total transaction of $671,928.51. Following the transaction, the insider directly owned 11,296 shares of the company's stock, valued at $1,815,380.16. This trade represents a 27.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Paul Gama sold 4,331 shares of the business's stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $161.27, for a total transaction of $698,460.37. Following the transaction, the chief executive officer owned 46,793 shares in the company, valued at approximately $7,546,307.11. This trade represents a 8.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 58,647 shares of company stock worth $9,268,508. Company insiders own 0.23% of the company's stock.

Institutional Investors Weigh In On Procter & Gamble

Several institutional investors and hedge funds have recently added to or reduced their stakes in PG. Vise Technologies Inc. boosted its position in Procter & Gamble by 15.2% in the third quarter. Vise Technologies Inc. now owns 131,794 shares of the company's stock valued at $19,147,000 after buying an additional 17,395 shares during the last quarter. Investment Partners LTD. lifted its holdings in shares of Procter & Gamble by 91.7% in the 3rd quarter. Investment Partners LTD. now owns 15,959 shares of the company's stock valued at $2,319,000 after buying an additional 7,635 shares during the period. Summit Global Investments grew its holdings in Procter & Gamble by 47.5% during the third quarter. Summit Global Investments now owns 20,089 shares of the company's stock worth $2,919,000 after acquiring an additional 6,472 shares during the period. Sagace Wealth Management LLC lifted its holdings in Procter & Gamble by 12.8% in the third quarter. Sagace Wealth Management LLC now owns 2,039 shares of the company's stock valued at $296,000 after acquiring an additional 232 shares during the period. Finally, Americana Partners LLC lifted its stake in shares of Procter & Gamble by 4.5% in the 3rd quarter. Americana Partners LLC now owns 80,071 shares of the company's stock valued at $11,633,000 after purchasing an additional 3,412 shares during the period. Hedge funds and other institutional investors own 65.77% of the company's stock.

Key Stories Impacting Procter & Gamble

Here are the key news stories impacting Procter & Gamble this week:

• Positive Sentiment: P&G’s latest quarter exceeded expectations, with earnings per share of $2.00 versus the $1.89 consensus and revenue of $23.28 billion versus $22.80 billion expected. Sales increased 4% year over year, while organic sales growth was supported primarily by higher product volumes rather than price increases. P&G Stock May Be Undervalued
• Positive Sentiment: Analysts and investment commentary remain broadly constructive. One analysis estimates PG may be about 23% undervalued, while Freedom Broker upgraded the stock from Hold to Buy. P&G’s leading household brands and dependable dividend continue to support its defensive-investment appeal. Freedom Broker Upgrade
• Positive Sentiment: The company’s quarterly dividend remains an important support for income-focused investors: the annualized payout is approximately $4.35 per share, representing a yield near 2.7% based on the cited stock data. P&G Dividend Analysis
• Neutral Sentiment: P&G has outperformed the broader market this year, but commentary questions how long that outperformance can continue. With shares trading well above their 50-day and 200-day moving averages, some investors may be taking profits. P&G Outperformance Analysis
• Negative Sentiment: Higher commodity, oil, packaging and transportation costs could pressure margins if P&G cannot offset them through pricing, productivity gains or favorable product mix. Investors are watching whether the company’s growth can continue while protecting profitability. P&G Commodity Costs
• Negative Sentiment: Recent insider selling, including a 4,181-share transaction valued at roughly $672,000, may add a modest sentiment overhang, although such sales do not necessarily indicate deteriorating business conditions. P&G Insider Sale

Procter & Gamble Company Profile

Procter & Gamble Company NYSE: PG is a global consumer products company that develops, manufactures and markets branded products used in households and personal care. Its portfolio includes personal health and grooming products, beauty and skin care items, baby, feminine and family care products, fabric and home care products, and oral care products.

The company's well-known brands include Pampers, Tide, Gillette, Crest, Oral-B, Head & Shoulders, Pantene, Olay, Old Spice, Dawn, Febreze and Mr.

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