New activist investor increases chance of a Procter & Gamble breakup

Trian Fund Management, the activist hedge-fund firm run by Nelson Peltz, on February 14 disclosed a $3.5 billion stake in Procter & Gamble PG.N.

The Procter & Gamble Company (NYSE:PG) [Trend Analysis] tries to capture market sentiments, shares knocked down -0.51% to $87.86. The company's 50-day moving average price is $83.67 and its 200-day moving average price is $85.78. While Trian has little more than 1 per cent of P&G stock, it has shown itself willing to launch noisy campaigns at other large companies, including in recent years at Mondelez International, owner of Cadbury chocolate, and DuPont, the chemicals company.

"P&G welcomes investment in our company, " the Cincinnati company said, after The Wall Street Journal first reported on Trian's investment on Tuesday.

The Procter & Gamble Company (NYSE:PG) traded with the volume of 18.72 Million in the previous trading session. Procter & Gamble Company (The) comprises 0.9% of State of Wisconsin Investment Board's portfolio, making the stock its 11th largest position. Company price to earnings (P/E) ratio, which measures the relationship between the earnings of a company and its stock price, is calculated as 25.42.

When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at 23.10%. Moving to focus more on core products, including Tide detergent and Gillette razors, the company sold 41 of its brands a year ago, including Clairol and COVERGIRL, to Coty Inc (COTY) for $12.5 billion. Stockholders of record on Friday, January 20th will be issued a dividend of $0.6695 per share. A P/B ratio of less than 1.0 can indicate that a stock is undervalued, while a ratio of greater than 1.0 may indicate that a stock is overvalued. Zacks Investment Research lowered shares of Procter & Gamble Company (The) from a "buy" rating to a "hold" rating in a report on Friday, October 21st. Investors looking further ahead will note that the Price to next year's EPS is 7.64%. Another insider trade includes Officer Skoufalos (Ioannis) who also initiated a transaction in which 10000 shares were traded on 8 Feb 2017 as "Buy". Wells Fargo & Company reaffirmed a "market perform" rating on shares of Procter & Gamble Company (The) in a report on Thursday, December 1st. The company has a consensus rating of "Hold" and a consensus target price of $90.40. The stock is going forward to its 52-week low with 13.70% and lagging behind from its 52-week high price with -1.21%. Analyst's mean target price for WFC is $58.15 while analysts mean recommendation is 2.70. The stock is now trading 3.43 percent higher from its SMA-50.

  • Zachary Reyes