Here's why P&G stock just hit a 52-week high
The value of
Procter & Gamble Co. stock surged to a 52-week high Friday morning, possibly because of growing consumer confidence rather than the Cincinnati-based consumer goods company’s
revelation today of huge shareholder interest in a stock swap with Coty Inc.
Shares in the maker of brands such as Tide detergent (NYSE: PG) hit $90.22 about 10:30 a.m., up 2.25 percent from the previous close of $88.23. The stock dipped below $90 a few minutes later, but it was still up 1.8 percent while trading at $89.86 around 11:15 a.m. It closed at $89.75, up 1.7 percent for the day. The value of shares has ranged from $71.29 to Friday's mid-day peak of $90.22 over the last 52 weeks.
The value of Procter & Gamble Co. stock surged to a 52-week high this morning.
The Index of Consumer Sentiment hit 91.2 in September, up 1.6 percent from August and an increase of 4.6 percent from September 2015, the University of Michigan reported today. That could be good news for P&G, which in addition to household essentials makes upscale consumer products such as the $58.75
Power Brush system introduced Thursday by its Art of Shaving subsidiary.
“Confidence edged upward in September due to gains among higher income households, while the Sentiment Index among households with incomes under $75,000 has remained at exactly the same level for the third consecutive month,” the university reported. “Fewer reports of recent income gains were counterbalanced by an uptick in income gains expected during the year ahead. The larger recent gains among upper income households was partly due to continued declines in their inflation expectations.”
Expenditures on personal consumption can be expected to increase by 2.7 percent through mid-2017, the university stated.
P&G revealed today that more than 691 million shares of common stock in company were
tendered in a swap for shares of New York-based Coty Inc., which has agreed to
buy 41 beauty brands from P&G in a deal valued at $12.5 billion.
The maker of brands such as CoverGirl cosmetics intends to accept nearly 105 million of the tendered shares in exchange for 409.7 million shares of Galleria Co. common stock owned by P&G.
P&G transferred the assets and liabilities of its Specialty Beauty Brands to Galleria, a wholly owned subsidiary of P&G created to facilitate the split-off transaction that is to close in October. Galleria will then merge with a wholly owned subsidiary of Coty (NYSE: COTY).
Brunsman covers Procter & Gamble Co. and health care.
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