Procter & Gamble (PG) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Procter & Gamble (NYSE:PG) from a hold rating to a sell rating in a research report report published on Monday.

According to Zacks, “Procter & Gamble lagged the industry year to date as it is witnessing strained margins owing to increased commodity and shipping costs, adverse currency, higher business investments and aggressive pricing from private-label products amid intense competition. Moreover, sales remain muted due to weak demand and lower prices. While the company expects recently announced price increases to help rebound sales and margins, analysts’ fear of impacts on demand and consumption. Also, softness in the grooming and baby care businesses remains concerns. However, the company has an impressive earnings surprise history, which continued in fourth-quarter fiscal 2018 marking its 13th consecutive beat. The company’s focus on product improvement, packaging and marketing initiatives, and productivity cost-savings plan bodes well. Further, it is benefiting from higher demand for skincare products, along with fabric and home care products.”

A number of other brokerages have also recently issued reports on PG. Atlantic Securities started coverage on Procter & Gamble in a report on Thursday, September 20th. They issued an overweight rating and a $94.00 target price on the stock. Jefferies Financial Group cut Procter & Gamble from a buy rating to a hold rating and set a $95.00 target price on the stock. in a report on Monday, July 9th. Deutsche Bank raised their price objective on shares of Procter & Gamble from $84.00 to $85.00 and gave the company a hold rating in a research note on Thursday, August 16th. Morgan Stanley raised their price objective on shares of Procter & Gamble from $80.00 to $85.00 and gave the company a hold rating in a research note on Wednesday, August 1st. Finally, Wells Fargo & Co reaffirmed a hold rating on shares of Procter & Gamble in a research note on Tuesday, July 31st. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of Hold and an average target price of $84.46.

Shares of NYSE PG opened at $80.24 on Monday. The firm has a market cap of $209.82 billion, a P/E ratio of 19.14, a P/E/G ratio of 2.68 and a beta of 0.59. Procter & Gamble has a 12-month low of $70.73 and a 12-month high of $93.14. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.66 and a current ratio of 0.83.

Procter & Gamble (NYSE:PG) last released its quarterly earnings data on Tuesday, July 31st. The company reported $0.94 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.90 by $0.04. The company had revenue of $16.50 billion for the quarter, compared to analysts’ expectations of $16.52 billion. Procter & Gamble had a net margin of 14.59% and a return on equity of 20.94%. The business’s revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.85 EPS. Equities research analysts predict that Procter & Gamble will post 4.42 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 15th. Shareholders of record on Friday, October 19th will be paid a dividend of $0.7172 per share. This represents a $2.87 annualized dividend and a yield of 3.58%. The ex-dividend date of this dividend is Thursday, October 18th. Procter & Gamble’s dividend payout ratio (DPR) is presently 68.01%.

In other Procter & Gamble news, Chairman David S. Taylor sold 21,029 shares of the firm’s stock in a transaction on Wednesday, August 22nd. The stock was sold at an average price of $83.52, for a total transaction of $1,756,342.08. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Juan Fernando Posada sold 9,600 shares of the firm’s stock in a transaction dated Friday, August 3rd. The shares were sold at an average price of $81.79, for a total transaction of $785,184.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 147,186 shares of company stock worth $12,080,849. Company insiders own 1.84% of the company’s stock.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Moody Aldrich Partners LLC bought a new stake in shares of Procter & Gamble in the 2nd quarter worth approximately $73,142,000. RPg Family Wealth Advisory LLC raised its holdings in shares of Procter & Gamble by 209.4% in the 2nd quarter. RPg Family Wealth Advisory LLC now owns 1,349 shares of the company’s stock worth $105,000 after purchasing an additional 913 shares during the period. CSat Investment Advisory L.P. bought a new stake in shares of Procter & Gamble in the second quarter valued at $113,000. Fort L.P. bought a new stake in shares of Procter & Gamble in the second quarter valued at $124,000. Finally, Twin Tree Management LP bought a new stake in shares of Procter & Gamble in the first quarter valued at $144,000. 58.36% of the stock is currently owned by institutional investors.

About Procter & Gamble

The Procter & Gamble Company provides branded consumer packaged goods to consumers in North America, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company operates in five segments: Beauty; Grooming; health Care; fabric & Home Care; and Baby, Feminine & Family Care.

Further Reading: Hedge Funds – Risk or Reward?

Get a free copy of the Zacks research report on Procter & Gamble (PG)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Procter & Gamble (NYSE:PG)

Receive News & Ratings for Procter & Gamble Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Procter & Gamble and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply