Procter & Gamble shares gain for a second session in a row on Friday, shareholders should back Nelson Peltz to board, ISS says

According to proxy adviser Institutional Shareholder Services, Procter & Gamble shareholders should vote in favor of activist investor Nelson Peltz joining the companys board. Procter & Gambles annual shareholder meeting is scheduled on October 10th.

Procter & Gamble shares closed higher for a second consecutive trading session on Friday. The stock edged up 0.10% ($0.09) to $90.98, after touching an intraday high at $91.43, or a price level not seen since September 27th ($92.52). In the week ended on October 1st the shares of the consumer goods provider lost 1.37% of their market value compared to a week ago, which marked a second consecutive period of decline and also the worst performance since the week ended on July 2nd. The stock retreated 1.40% in September, which marked the first loss since June. For the entire past year, Procter & Gamble shares gained 5.88%. The stock has risen 8.21% so far in 2017.

“The addition of one well-qualified nominee, who holds a large economic stake, appears likely to have benefits that outweigh the potential risks”, ISS said on Friday, cited by Reuters. “Support for dissident nominee Peltz is recommended.”

Peltzs nomination to Procter & Gambles board was announced earlier this year. Additionally, Peltzs Trian Fund Management revealed a $3.5 billion stake in the consumer goods giant.

There have been opinions that Peltzs plan aimed at increasing shareholder value through restructuring the company into three autonomous business units would lead to higher expenses, lower profits and a potential need for further re-organization.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Procter & Gamble’s stock price, have a median target of $95.00, with a high estimate of $106.00 and a low estimate of $80.00. The median estimate is a 4.42% surge compared to the closing price of $90.98 on September 29th.

The same media also reported that 12 out of 25 surveyed investment analysts had rated Procter & Gamble’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Procter & Gamble stock are presented as follows:

R1 – $91.05
R2 – $91.11
R3 (Range Resistance – Sell) – $91.18
R4 (Long Breakout) – $91.38
R5 (Breakout Target 1) – $91.62
R6 (Breakout Target 2) – $91.71

S1 – $90.91
S2 – $90.85
S3 (Range Support – Buy) – $90.78
S4 (Short Breakout) – $90.58
S5 (Breakout Target 1) – $90.34
S6 (Breakout Target 2) – $90.25

By using the traditional method of calculation, the weekly levels of importance for Procter & Gamble Company (PG) are presented as follows:

Central Pivot Point – $91.47
R1 – $92.60
R2 – $94.22
R3 – $95.35
R4 – $96.48

S1 – $89.85
S2 – $88.72
S3 – $87.10
S4 – $85.48