Farmers & Merchants Trims Procter & Gamble Stake by 4.3%, Sells 6,300 Shares
Farmers & Merchants Investments Inc reduced its Procter & Gamble stake by 4.3%, selling 6,300 shares to hold 138,611 shares valued at $21.3 million at quarter-end. Institutional investors now own 65.77% of PG’s shares following the latest SEC filing.
1. Dividend Track Record and Cash Flow Strength
Procter & Gamble has increased its dividend for 69 consecutive years and paid a dividend every year for 135 years, with a current yield of 2.9%. The dividend payout ratio stands at 60%, comfortably covered by robust free cash flow, which totaled approximately $12 billion over the trailing 12 months. In fiscal 2025, operating cash flow reached $17.8 billion, enabling the company to return over $16 billion to shareholders through dividends and share repurchases.
2. Recent Financial Performance
For fiscal year 2025, Procter & Gamble reported net sales of $84.3 billion, flat year-over-year, and net earnings of $16 billion, up 7%. In Q1 2026, net sales were $22.4 billion (up 3%) and net earnings rose 20% to $4.8 billion. On October 24th (Q3 2025), the company posted EPS of $1.99, beating consensus by $0.09, on revenue of $22.39 billion (up 3% and $0.16 billion ahead of estimates). Return on equity was 32.63% and net margin 19.74%. Management set FY 2026 EPS guidance at a range of 6.83–7.10.
3. Institutional and Analyst Sentiment
Institutional ownership stands at 65.77%. In Q3, Farmers & Merchants Investments trimmed its stake by 4.3%, selling 6,300 shares and holding 138,611 shares valued at $21.3 million. Thirteen analysts rate the stock a Buy and ten a Hold, for a consensus Moderate Buy rating and a target price of $171.38. Recent price objectives range from $151 to $176, with ratings spanning Hold, Equal Weight, Outperform and Buy.
4. Insider Activity and Financial Position
In the last quarter, insiders sold a total of 30,308 shares valued at $4.61 million, including CEO Gary Coombe’s sale of 3,535 shares at $152.23 and COO Shailesh Jejurikar’s sale of 3,986 shares at the same average price. The company maintains a conservative financial position with a current ratio of 0.71, quick ratio of 0.51 and a debt-to-equity ratio of 0.46. Procter & Gamble’s beta is 0.39, reflecting lower volatility relative to the market.