Procter & Gamble (NYSE:PG) Stock Price Down 2.6% - Here's What Happened

Key Points

• P&G shares fell 2.6% to about $161.21 despite fiscal Q1 results that beat expectations, with adjusted EPS of $2.00 and revenue of $23.28 billion, up 4% year over year.
• Analysts largely remain positive, with several firms raising price targets; the stock carries a “Moderate Buy” consensus rating and an average target of $168.90.
• Higher commodity, energy and transportation costs pose a risk to margins and could offset pricing and productivity gains, while fiscal 2027 revenue guidance remained below analyst expectations.

Shares of Procter & Gamble Company (The) (NYSE:PG - Get Free Report) fell 2.6% on Friday. The company traded as low as $160.64 and last traded at $161.2070. Approximately 9,771,503 shares changed hands during trading, an increase of 0% from the average daily volume of 9,752,110 shares. The stock had previously closed at $165.59.

Procter & Gamble News Roundup

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

• Positive Sentiment: Better-than-expected fiscal Q1 results: P&G reported adjusted EPS of $2.00 versus the $1.89 consensus, while revenue rose 4% year over year to $23.28 billion, exceeding estimates of about $22.8 billion. Organic sales also increased 4%, supported by 2.4 percentage points of volume growth, favorable product mix and productivity savings. Procter & Gamble earnings beat as sales rise 4%
• Positive Sentiment: Analysts raised targets: Citigroup lifted its target to $187 and assigned a Buy rating, BNP Paribas Exane raised its target to $189 with an Outperform rating, and JPMorgan increased its target to $180 with an Overweight rating. TD Cowen also raised its target to $166, although it maintained a Hold rating. Analyst targets and turnaround outlook
• Positive Sentiment: Defensive and income appeal: P&G’s scale, diversified household-products portfolio and 70-year record of consecutive dividend increases continue to support demand from defensive and income-oriented investors. P&G’s 70-year dividend record
• Neutral Sentiment: Guidance was mixed: P&G forecasts fiscal 2027 EPS of $6.89–$7.11, broadly consistent with the $6.98 consensus. Its $86.0–$87.7 billion revenue outlook was raised partly because of the Thorne acquisition but remains below analysts’ $88.8 billion expectation.
• Negative Sentiment: Commodity inflation threatens margins: Higher oil, raw-material, energy and transportation costs are expected to create a larger annual profit headwind. Analysts caution that pricing and productivity improvements may not fully offset the pressure, leaving the durability of the recovery uncertain. P&G flags higher commodity costs

Wall Street Analyst Weigh In

A number of research analysts have recently commented on PG shares. Sanford C. Bernstein restated a "market perform" rating and issued a $149.00 price target on shares of Procter & Gamble in a report on Monday, August 24th. TD Cowen lifted their price objective on Procter & Gamble from $150.00 to $166.00 and gave the company a "hold" rating in a report on Friday. JPMorgan Chase & Co. upped their price objective on shares of Procter & Gamble from $162.00 to $180.00 and gave the stock an "overweight" rating in a research note on Friday. Argus cut shares of Procter & Gamble from a "buy" rating to a "hold" rating in a report on Friday, August 7th. Finally, Jefferies Financial Group raised their target price on shares of Procter & Gamble from $177.00 to $179.00 and gave the company a "buy" rating in a research report on Friday, June 26th. Fifteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $168.90.

Procter & Gamble Price Performance

The firm has a 50-day simple moving average of $148.08 and a 200-day simple moving average of $146.99. The firm has a market cap of $374.43 billion, a P/E ratio of 24.35, a PEG ratio of 3.90 and a beta of 0.39. The company has a current ratio of 0.68, a quick ratio of 0.47 and a debt-to-equity ratio of 0.43.

Procter & Gamble (NYSE:PG - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The company reported $2.00 EPS for the quarter, topping the consensus estimate of $1.89 by $0.11. The firm had revenue of $23.28 billion during the quarter, compared to analyst estimates of $22.80 billion. Procter & Gamble had a return on equity of 31.36% and a net margin of 18.44%. The business's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period in the previous year, the company posted $1.99 EPS. As a group, analysts forecast that Procter & Gamble Company will post 6.98 EPS for the current year.

Procter & Gamble Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Friday, October 23rd will be issued 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 2.7%. Procter & Gamble's payout ratio is currently 65.71%.

Insider Buying and Selling at Procter & Gamble

In other news, insider Marc S. Pritchard sold 4,030 shares of Procter & Gamble stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $143.79, for a total value of $579,473.70. Following the transaction, the insider owned 187,001 shares of the company's stock, valued at $26,888,873.79. The trade was a 2.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andre Schulten sold 3,914 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $145.34, for a total transaction of $568,860.76. Following the transaction, the chief financial officer owned 65,618 shares of the company's stock, valued at approximately $9,536,920.12. This trade represents a 5.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 15,135 shares of company stock valued at $2,189,970. 0.23% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Procter & Gamble

Several institutional investors and hedge funds have recently bought and sold shares of PG. BlackRock Inc. acquired a new position in shares of Procter & Gamble during the second quarter worth $27,862,105,000. State Street Corp boosted its position in shares of Procter & Gamble by 1.0% in the 2nd quarter. State Street Corp now owns 102,216,308 shares of the company's stock worth $14,988,999,000 after purchasing an additional 965,461 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Procter & Gamble in the 2nd quarter worth $3,850,628,000. Bank of New York Mellon Corp acquired a new stake in shares of Procter & Gamble in the 2nd quarter worth $2,281,505,000. Finally, Dimensional Fund Advisors LP grew its stake in Procter & Gamble by 2.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 11,797,916 shares of the company's stock worth $1,704,182,000 after buying an additional 300,280 shares during the last quarter. 65.77% of the stock is owned by hedge funds and other institutional investors.

About Procter & Gamble

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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