Procter & Gamble Company (The) (NYSE:PG) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate P&G a “Moderate Buy,” with 13 buy ratings and 10 holds among 23 firms. The average 12-month price target is $161.55, above the stock’s reported $146.28 price.
• P&G’s latest quarterly results exceeded EPS expectations, with $1.43 in adjusted EPS versus $1.41 estimated, while revenue rose 1.5% year over year to $21.20 billion but fell short of forecasts.
• The company continues to appeal as a defensive, dividend-paying consumer-staples stock, with a quarterly dividend of $1.0885, an annualized yield of about 3.0%, and 65.77% institutional ownership; however, recent job cuts and insider stock sales remain potential concerns.

Procter & Gamble Company (The) (NYSE:PG - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-three research firms that are currently covering the company, MarketBeat Ratings reports. Ten investment analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $161.55.

A number of research analysts have weighed in on the stock. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Procter & Gamble in a research note on Wednesday, August 19th. Jefferies Financial Group boosted their target price on shares of Procter & Gamble from $177.00 to $179.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Procter & Gamble in a research report on Wednesday, June 24th. Bank of America cut their price target on Procter & Gamble from $170.00 to $166.00 and set a "buy" rating for the company in a research note on Friday, July 10th. Finally, HSBC reissued a "hold" rating and issued a $149.00 price objective (down from $182.00) on shares of Procter & Gamble in a research note on Thursday, July 30th.

Key Headlines Impacting Procter & Gamble

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

• Positive Sentiment: Analysts and investors continue to view P&G as a relatively resilient consumer-staples holding if consumer confidence and spending weaken. Its broad portfolio of essential brands and defensive demand could make PG more attractive during an economic slowdown. Why Investors May Want to Buy Procter & Gamble if Consumer Spending Cools
• Positive Sentiment: P&G remains a frequently searched stock on Zacks, indicating elevated investor interest. However, the coverage emphasizes reviewing existing business and valuation factors rather than announcing a new positive development. Investors Heavily Search Procter & Gamble Company
• Neutral Sentiment: Bernstein assigned PG a “Hold” rating, signaling that the analyst sees a relatively balanced risk-reward profile rather than a clear reason to buy or sell aggressively. Procter & Gamble Receives a Hold from Bernstein
• Neutral Sentiment: A defensive-dividend-stock article includes PG among the names investors may consider amid Federal Reserve and inflation concerns, reinforcing its income appeal but offering no new company-specific catalyst. The September Scramble: Defensive Dividend Stocks
• Negative Sentiment: Reports that P&G has cut approximately 5,000 jobs could raise concerns about restructuring, softer demand, or pressure to reduce costs, although the featured article primarily discusses employees’ retirement-account tax decisions rather than the company’s operating outlook. P&G Has Cut 5,000 Jobs

Insider Transactions at Procter & Gamble

In other news, CAO Matthew Janzaruk sold 359 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $145.24, for a total value of $52,141.16. Following the completion of the sale, the chief accounting officer owned 1,271 shares in the company, valued at $184,600.04. This represents a 22.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Marc Pritchard sold 4,030 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $143.79, for a total transaction of $579,473.70. Following the transaction, the insider directly owned 187,001 shares in the company, valued at $26,888,873.79. The trade was a 2.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 6,627 shares of company stock worth $953,417 in the last quarter. 0.23% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Procter & Gamble

Institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Procter & Gamble in the second quarter valued at about $27,862,105,000. Norges Bank purchased a new stake in shares of Procter & Gamble during the 4th quarter worth approximately $4,664,783,000. Bank of America Corp DE bought a new stake in shares of Procter & Gamble in the 2nd quarter worth approximately $3,850,628,000. Bank of New York Mellon Corp purchased a new position in Procter & Gamble in the second quarter valued at approximately $2,281,505,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Procter & Gamble in the second quarter valued at approximately $1,480,650,000. 65.77% of the stock is owned by institutional investors.

Procter & Gamble Trading Down 0.9%

NYSE PG opened at $146.28 on Friday. The company has a market cap of $339.77 billion, a price-to-earnings ratio of 22.10, a P/E/G ratio of 3.66 and a beta of 0.39. Procter & Gamble has a 52 week low of $137.62 and a 52 week high of $167.25. The business has a 50 day moving average price of $146.10 and a 200-day moving average price of $146.67. The company has a quick ratio of 0.47, a current ratio of 0.68 and a debt-to-equity ratio of 0.43.

Procter & Gamble (NYSE:PG - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.02. Procter & Gamble had a return on equity of 31.36% and a net margin of 18.44%.The company had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $21.38 billion. During the same period last year, the business earned $1.48 EPS. Procter & Gamble's quarterly revenue was up 1.5% compared to the same quarter last year. Procter & Gamble has set its FY 2027 guidance at 6.890-7.110 EPS. As a group, equities analysts expect that Procter & Gamble will post 6.99 earnings per share for the current fiscal year.

Procter & Gamble Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 17th. Shareholders of record on Friday, July 24th were issued a dividend of $1.0885 per share. This represents a $4.35 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend was Friday, July 24th. Procter & Gamble's payout ratio is currently 65.71%.

About Procter & Gamble

Procter & Gamble Company is a global consumer products company that develops, manufactures and markets branded products used in households and personal care. Its portfolio spans beauty, grooming, health care, fabric and home care, and family care products.

The company's brands include Tide, Ariel, Downy, Dawn, Febreze, Bounty, Charmin, Pampers, Gillette, Oral-B, Crest, Head & Shoulders, Olay and Pantene. These products are sold through retailers, e-commerce platforms and other distribution channels.

Procter & Gamble was founded in Cincinnati in 1837 by William Procter and James Gamble.

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