Procter & Gamble (NYSE:PG) Hits New 52-Week High - Time to Buy?

Key Points

• Procter & Gamble hit a 52-week high, trading as high as $170.68 after closing previously at $168.03.
• The company beat quarterly estimates, reporting EPS of $2.00 versus $1.89 expected and revenue of $23.28 billion; revenue grew 4% year over year.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $170.57. P&G’s annualized dividend yield is about 2.6%, while rising commodity costs and pressure on margins are potential risks.

Procter & Gamble Company (The) (NYSE:PG - Get Free Report) reached a new 52-week high during mid-day trading on Friday. The stock traded as high as $170.68 and last traded at $170.5390, with a volume of 1,655,347 shares. The stock had previously closed at $168.03.

Trending Headlines about Procter & Gamble

Here are a few of the latest headlines about PG:

• Positive Sentiment: The company declared a quarterly dividend of $1.0885 per share, equivalent to about $4.35 annually and a 2.6% yield. Its 70-year record of dividend increases may continue to attract income-focused investors. Article: Procter & Gamble Has Raised Its Dividend for 70 Straight Years
• Neutral Sentiment: An upcoming Investor Day could provide further detail on growth plans, but the article does not identify specific new commitments. A separate valuation analysis questions whether future cash flows justify the share price, making valuation a consideration after recent gains. Article: Is Procter & Gamble Worth More Than Its Price Today?
• Negative Sentiment: Higher oil and other commodity costs, alongside shrinking margins, could weigh on profitability and challenge the rally. CEO El Hak Hesham Abd also sold 2,250 shares at $168.47, reducing his direct holding by about 20%; the sale may concern investors, though it does not by itself signal a change in the business outlook. Article: Procter & Gamble CEO Sells 2,250 Shares

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. DZ Bank lowered Procter & Gamble from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 27th. Morgan Stanley raised their price objective on Procter & Gamble from $166.00 to $185.00 and gave the stock an "overweight" rating in a research report on Friday, October 23rd. Argus downgraded Procter & Gamble from a "buy" rating to a "hold" rating in a research note on Friday, August 7th. BNP Paribas Exane upped their target price on Procter & Gamble from $177.00 to $189.00 and gave the company an "outperform" rating in a research report on Friday, October 23rd. Finally, Royal Bank Of Canada set a $169.00 price target on Procter & Gamble in a research note on Friday, October 23rd. Fifteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $170.57.

Procter & Gamble Stock Performance

The stock has a market capitalization of $394.21 billion, a price-to-earnings ratio of 25.63, a P/E/G ratio of 4.12 and a beta of 0.36. The company has a current ratio of 0.72, a quick ratio of 0.53 and a debt-to-equity ratio of 0.40. The firm has a 50-day moving average of $153.80 and a 200-day moving average of $149.82.

Procter & Gamble (NYSE:PG - Get Free Report) last issued its quarterly earnings results on Thursday, October 22nd. The company reported $2.00 EPS for the quarter, topping analysts' consensus estimates of $1.89 by $0.11. The company had revenue of $23.28 billion during the quarter, compared to analysts' expectations of $22.80 billion. Procter & Gamble had a return on equity of 31.02% and a net margin of 18.23%. The firm's revenue was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.99 EPS. As a group, sell-side analysts predict that Procter & Gamble Company will post 6.99 earnings per share for the current year.

Procter & Gamble Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Friday, October 23rd will be given a $1.0885 dividend. The ex-dividend date is Friday, October 23rd. This represents a $4.35 dividend on an annualized basis and a yield of 2.6%. Procter & Gamble's dividend payout ratio is currently 65.51%.

Insider Buying and Selling

In other Procter & Gamble news, CFO Andre Schulten sold 33,624 shares of Procter & Gamble stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $165.00, for a total transaction of $5,547,960.00. Following the completion of the sale, the chief financial officer directly owned 65,618 shares in the company, valued at approximately $10,826,970. The trade was a 33.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Sundar G. Raman sold 38,253 shares of the company's stock in a transaction on Friday, October 30th. The shares were sold at an average price of $165.00, for a total transaction of $6,311,745.00. Following the completion of the sale, the chief executive officer directly owned 47,745 shares in the company, valued at $7,877,925. This trade represents a 44.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 200,006 shares of company stock worth $32,715,058 in the last quarter. 0.23% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Procter & Gamble

Hedge funds have recently added to or reduced their stakes in the business. Ellis Investment Partners LLC raised its position in Procter & Gamble by 0.7% during the third quarter. Ellis Investment Partners LLC now owns 8,816 shares of the company's stock valued at $1,281,000 after acquiring an additional 64 shares in the last quarter. Clark Wealth Partners boosted its position in Procter & Gamble by 20.6% in the 3rd quarter. Clark Wealth Partners now owns 387 shares of the company's stock worth $56,000 after purchasing an additional 66 shares in the last quarter. Kuhn & Co Investment Counsel boosted its position in Procter & Gamble by 1.0% in the 3rd quarter. Kuhn & Co Investment Counsel now owns 6,555 shares of the company's stock worth $952,000 after purchasing an additional 66 shares in the last quarter. BCGM Wealth Management LLC grew its stake in shares of Procter & Gamble by 2.4% during the 3rd quarter. BCGM Wealth Management LLC now owns 2,820 shares of the company's stock worth $410,000 after purchasing an additional 66 shares during the period. Finally, Whelan Financial increased its holdings in shares of Procter & Gamble by 1.9% during the 3rd quarter. Whelan Financial now owns 3,689 shares of the company's stock valued at $536,000 after purchasing an additional 68 shares in the last quarter. 65.77% of the stock is owned by hedge funds and other institutional investors.

About Procter & Gamble

The Procter & Gamble Company is a consumer goods company that develops, manufactures and markets products for everyday use. Founded in 1837 by William Procter and James Gamble, the company is headquartered in Cincinnati, Ohio. Its products span beauty, grooming, health care, fabric and home care, and baby, feminine and family care. Well-known brands include Tide, Pampers, Gillette, Pantene, Olay, Oral-B, Crest, Dawn, Charmin and Bounty. Procter & Gamble sells its products in markets around the world through retail stores, e-commerce platforms and other distribution channels.

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