Procter & Gamble (NYSE:PG) Shares Up 3.1% on Better-Than-Expected Earnings

The Procter & Gamble Company (NYSE:PG) shares shot up 3.1% on Wednesday following a better than expected earnings announcement. The company traded as high as $168.14 and last traded at $166.70. 5,274,784 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 7,221,799 shares. The stock had previously closed at $161.72.

The company reported $1.88 earnings per share for the quarter, topping the consensus estimate of $1.86 by $0.02. Procter & Gamble had a return on equity of 33.25% and a net margin of 17.07%. The firm had revenue of $21.88 billion during the quarter, compared to analysts’ expectations of $21,657,595.49 billion. During the same period in the prior year, the company earned $1.84 earnings per share. The company’s quarterly revenue was up 2.1% on a year-over-year basis.

Procter & Gamble Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 18th. Stockholders of record on Friday, January 24th will be paid a $1.0065 dividend. This represents a $4.03 dividend on an annualized basis and a dividend yield of 2.42%. The ex-dividend date of this dividend is Friday, January 24th. Procter & Gamble’s payout ratio is 69.48%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. UBS Group dropped their price target on Procter & Gamble from $196.00 to $189.00 and set a “buy” rating for the company in a research note on Thursday, January 16th. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $164.00 target price on shares of Procter & Gamble in a research report on Thursday. Barclays raised their target price on Procter & Gamble from $155.00 to $159.00 and gave the stock an “equal weight” rating in a research report on Thursday. Evercore ISI raised their target price on Procter & Gamble from $180.00 to $183.00 and gave the stock an “outperform” rating in a research report on Monday, October 21st. Finally, DA Davidson reaffirmed a “buy” rating and set a $209.00 target price on shares of Procter & Gamble in a research report on Thursday. Eight research analysts have rated the stock with a hold rating, fourteen have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $180.25.

Insider Buying and Selling

In related news, CEO Gary A. Coombe sold 47,847 shares of Procter & Gamble stock in a transaction that occurred on Wednesday, November 27th. The shares were sold at an average price of $179.84, for a total value of $8,604,804.48. Following the completion of the transaction, the chief executive officer now directly owns 39,977 shares in the company, valued at approximately $7,189,463.68. The trade was a 54.48 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Balaji Purushothaman sold 12,800 shares of Procter & Gamble stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $172.73, for a total transaction of $2,210,944.00. Following the completion of the transaction, the insider now owns 11,595 shares of the company’s stock, valued at $2,002,804.35. This represents a 52.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.18% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. RPg Family Wealth Advisory LLC purchased a new position in Procter & Gamble in the third quarter worth $33,000. New Wave Wealth Advisors LLC purchased a new position in Procter & Gamble in the fourth quarter worth $46,000. Costello Asset Management INC grew its position in Procter & Gamble by 2,142.9% in the third quarter. Costello Asset Management INC now owns 314 shares of the company’s stock worth $54,000 after acquiring an additional 300 shares in the last quarter. William B. Walkup & Associates Inc. purchased a new position in Procter & Gamble in the second quarter worth $58,000. Finally, Mendota Financial Group LLC grew its position in Procter & Gamble by 58.0% in the fourth quarter. Mendota Financial Group LLC now owns 376 shares of the company’s stock worth $63,000 after acquiring an additional 138 shares in the last quarter. 65.77% of the stock is currently owned by hedge funds and other institutional investors.

Procter & Gamble Price Performance

The company has a quick ratio of 0.55, a current ratio of 0.75 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $391.41 billion, a PE ratio of 28.66, a price-to-earnings-growth ratio of 3.64 and a beta of 0.45. The firm’s 50-day moving average is $168.97 and its 200-day moving average is $169.38.

About Procter & Gamble

Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.