The Procter & Gamble (NYSE:PG) Will Face Ever Greater Pressure To Slice Costs And Slow-Growing Divisions- Johnson Controls (JCI)

The Procter & Gamble Company (NYSE:PG) [Trend Analysis] tries to capture market sentiments, shares knocked down -0.51% to $87.86. Procter & Gamble Co (PG) will face ever greater pressure to slice costs and slow-growing divisions now that activist investor Trian Partners is a major shareholder. P&G’s shares hit a two-year high on Wednesday after Trian disclosed a stake in the consumer products company, which is already trying to slim down by selling unprofitable brands. A person familiar with the matter told Reuters that Trian currently holds more than $3 billion of P&G’s stock.

Trian has a track record of pressuring large consumer companies to break up, a history investors and analysts are seizing on with the fund’s newest investment. But Trian has yet to publish a white paper, and the firm’s exact plan remains to be seen. In addition to breaking P&G into separate companies, analysts speculated that Trian could press for more brand divestitures and heavy-handed cost overhauls.

“Absent a two- or three-way breakup, we suppose Peltz could also call for a 3G-like attack on the company’s cost structure,” said Don Bilson, director of research at Gordon Haskett, which tracks M&A and activism. Bilson was referring to 3G Capital, a private equity firm that embraces a hard-core cost cutting strategy known as zero-based budgeting.

When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at 23.10%. Investors looking further ahead will note that the Price to next year’s EPS is 7.64%. (What Market Forces Produce Volatility in NYSE:PG Share? Find Free Report Here)

As for as concerns shares volumes, in share of capital The Procter & Gamble Company (NYSE:PG) has 2576.82 million outstanding shares among them 2438.43 million shares have been floated in market exchange. PG institutional ownership remained 72.30% while insider ownership included 0.07%. The firm attains analyst recommendation of 2.30 with week’s performance of -0.17%

Johnson Controls International plc (NYSE:JCI) [Trend Analysis] shows fluctuation in active trade, on Wednesday shares reduced -0.62% to $41.49. The 52-week high of the share price is -14.79% and 52-week low of the share price is 28.38%. Current stock price is in the upbeat territory taking into account of 20 days moving average with -3.07% and continued bullish run for 50 days moving average with -3.40%.

Moving toward technical analysis, the current ratio, or the liquidity ratio of a company was calculated 1 as compared to its debt to equity ratio stands at 0.68. To take look on ration of tradable shares being shorted in market, float short ration was 0.95%, as compared to sentiment indicator; Short Ratio was 1.55. Taking notice in average true range, it was 0.83.

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Steve Hart

Steve Hart is a longtime business journalist who has covered everything from municipal bonds to management, major banks and MBA programs. Prior to becoming a writer at Seneca Globe News, Steve Hart was a securities analyst and a budget and fiscal analyst. Steve can be reached at

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