Clark Asset Management Increases Stake in Procter & Gamble by 171.7%

Clark Asset Management LLC has significantly increased its investment in the Procter & Gamble Company (NYSE: PG), boosting its shareholding by an impressive 171.7% during the second quarter of 2023. This expansion comes as the firm acquired an additional 3,483 shares, bringing its total holdings to 5,511 shares valued at approximately $878,000 at the end of the reporting period.

The growth in Clark Asset Management’s position reflects a broader trend among institutional investors. Other firms are also adjusting their portfolios in response to Procter & Gamble’s market performance. Notably, Kingstone Capital Partners Texas LLC increased its stake by an astounding 655,209.0%, now owning 76,028,952 shares worth around $11.83 billion. Similarly, Nuveen LLC acquired a new stake valued at $1.95 billion, while Price T Rowe Associates Inc. raised its holdings by 13.0% during the first quarter.

Analyst Ratings and Market Performance

Procter & Gamble’s stock has garnered attention from various analysts, with numerous research reports influencing market sentiment. On September 23, BNP Paribas Exane lowered its price target from $177.00 to $172.00, maintaining an “outperform” rating. In a similar vein, Bank of America reduced its target from $180.00 to $174.00 but retained a “buy” rating. Analysts from JPMorgan Chase & Co. also adjusted their price target upward from $163.00 to $165.00, giving the company a “neutral” rating.

Currently, the stock has a consensus rating of “Moderate Buy” with an average target price of $171.53. Eleven analysts have issued a Buy rating, while nine have assigned a Hold rating.

On October 24, 2023, Procter & Gamble reported earnings that exceeded expectations. The company announced earnings per share of $1.99, surpassing the consensus estimate of $1.90 by $0.09. The firm generated revenues of $22.39 billion for the quarter, up 3.0% compared to the prior year, compared to analyst estimates of $22.23 billion.

Future Outlook and Dividends

Looking ahead, Procter & Gamble has provided guidance for the fiscal year 2026, projecting earnings per share between $6.830 and $7.100. Analysts anticipate that the company will achieve earnings of $6.91 per share for the current year.

In terms of shareholder returns, Procter & Gamble has recently declared a quarterly dividend of $1.0568 per share, set to be paid on November 17, 2023. The ex-dividend date is October 24, 2023. This results in an annualized dividend of $4.23 and a dividend yield of 2.8%. The company’s current dividend payout ratio stands at 61.75%.

In insider trading activity, Chief Operating Officer Shailesh Jejurikar sold 13,039 shares on August 19, 2023, for an average price of $157.27, totaling over $2 million. Following this transaction, he retained 28,036 shares valued at approximately $4.41 million. Similarly, insider Marc S. Pritchard sold 9,849 shares on the same day, resulting in a decrease of 5.12% in his position.

The company, which operates across multiple segments including beauty, grooming, healthcare, and home care, continues to demonstrate resilience in a competitive market, appealing to both institutional and retail investors alike.