Published: Thu, February 16, 2017
Money | By Oscar Reynolds

Peltz's Trian: What Will He Do With $3B P&G Stake?

Peltz's Trian: What Will He Do With $3B P&G Stake?

Trian Fund Management, the activist fund co-founded by Nelson Peltz, Peter May and Ed Garden, revealed a new stake in consumer company Procter & Gamble Co.

The investment from Trian has it taking a $3.5 billion stake in Procter & Gamble Co.

United States stocks were little changed early today following data showing higher retail sales and consumer inflation, while Procter & Gamble rose as a leading activist disclosed a stake in the company. Analysts have a mean recommendation of 2.60 on this stock (A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range). The Stock opened its session at $88 and closed at $87.86 by showing decrease of -0.51 percent. 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.

The Procter & Gamble Company is focused on providing branded consumer packaged goods to the consumers across the world. PG's last earnings report saw it beat out Wall Street's earnings per share and revenue estimates for that quarter.

Yet the WSJ reports that Trian has a $3 billion stake in the company - the largest it has ever taken - which should add to the pressure on CEO David Taylor to cut costs and sped up growth. This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately. Stockholders of record on Friday, January 20th will be issued a dividend of $0.6695 per share. The company has a market capitalization of $225.00 billion, a PE ratio of 22.43 and a beta of 0.59.

The next year first quarter EPS estimates trend for current period shows $0.94 while one month ago this estimate trend was for $0.94.

Procter & Gamble Company (The) (NYSE:PG) last released its quarterly earnings results on Tuesday, October 25th. A regulatory filing said the investment firm had bought $500,000 of shares by the end of December, and a person familiar with the purchases said they had accelerated since the start of the year. 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%. Investors looking further ahead will note that the Price to next year's EPS is 7.64%.

On 14 February 2017, Wells Fargo & Company (NYSE:WFC) shares moved to $57.98. The Company now has Insider ownership of 0.07 Percent and Institutional Ownership of 72.3 Percent. The company has a consensus rating of "Hold" and a consensus target price of $90.40.

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