Colgate-Palmolive Co. (CL) Rating Lowered to Hold at Zacks Investment Research
Colgate-Palmolive Co. (NYSE:CL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Colgate is in good shape given its continued focus on product innovation, along with globally recognized brands and presence in both developed and emerging economies, which enables it to capture growth opportunities and boost profitability. Further, the company’s international brand recognition and innovative strategies underscore its inherent strength. The company’s cost savings programs are also delivering impressive results as evident from improving operating margins. In 2016, the company anticipates to deliver robust organic sales growth backed by new products across categories and geographical regions, which should translate into double-digits organic earnings per share growth. However, the company expects macroeconomic headwinds and currency woes to linger in 2016. Also, stiff competition remains a threat. Estimates have been largely stable ahead of the company’s third-quarter earnings release.”
Several other equities analysts have also commented on the stock. Bank of America Corp. raised shares of Colgate-Palmolive from a “neutral” rating to a “buy” rating and increased their target price for the company from $70.86 to $80.00 in a report on Monday, September 12th. Citigroup Inc. increased their target price on shares of Colgate-Palmolive from $82.00 to $88.00 and gave the company a “buy” rating in a report on Friday, July 29th. Deutsche Bank AG reaffirmed a “hold” rating and set a $75.00 target price (up previously from $73.00) on shares of Colgate-Palmolive in a report on Sunday, July 24th. JPMorgan Chase & Co. reaffirmed a “hold” rating and set a $75.00 target price on shares of Colgate-Palmolive in a report on Friday, July 29th. Finally, B. Riley reaffirmed a “neutral” rating and set a $71.00 target price on shares of Colgate-Palmolive in a report on Wednesday, August 3rd. Fifteen analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $74.46.
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Colgate-Palmolive (NYSE:CL) traded up 0.66% during trading on Tuesday, reaching $72.67. 1,742,047 shares of the company traded hands. The firm’s 50 day moving average price is $74.03 and its 200 day moving average price is $72.05. Colgate-Palmolive has a 12-month low of $61.40 and a 12-month high of $75.38. The firm has a market capitalization of $64.78 billion, a price-to-earnings ratio of 46.79 and a beta of 0.59.
Colgate-Palmolive (NYSE:CL) last posted its earnings results on Thursday, July 28th. The company reported $0.70 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.69 by $0.01. Colgate-Palmolive had a net margin of 9.04% and a return on equity of 1,980.28%. The business had revenue of $3.85 billion for the quarter, compared to analysts’ expectations of $3.86 billion. During the same period in the prior year, the company posted $0.70 EPS. The business’s revenue for the quarter was down 5.4% compared to the same quarter last year. Equities research analysts expect that Colgate-Palmolive will post $2.79 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 15th. Shareholders of record on Monday, October 24th will be issued a $0.39 dividend. The ex-dividend date of this dividend is Thursday, October 20th. This represents a $1.56 annualized dividend and a yield of 2.16%. Colgate-Palmolive’s dividend payout ratio (DPR) is presently 100.65%.
In other news, COO Noel R. Wallace sold 78,849 shares of Colgate-Palmolive stock in a transaction that occurred on Tuesday, August 2nd. The shares were sold at an average price of $74.69, for a total value of $5,889,231.81. Following the completion of the sale, the chief operating officer now directly owns 236,295 shares in the company, valued at $17,648,873.55. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Patricia Verduin sold 3,834 shares of Colgate-Palmolive stock in a transaction that occurred on Thursday, September 15th. The stock was sold at an average price of $71.85, for a total transaction of $275,472.90. Following the completion of the sale, the insider now owns 55,013 shares of the company’s stock, valued at $3,952,684.05. The disclosure for this sale can be found here. 1.05% of the stock is currently owned by company insiders.
Several hedge funds have recently made changes to their positions in the company. Macquarie Group Ltd. raised its stake in shares of Colgate-Palmolive by 36.5% in the second quarter. Macquarie Group Ltd. now owns 25,660 shares of the company’s stock valued at $1,878,000 after buying an additional 6,860 shares during the period. Carnick & Kubik Group LLC acquired a new stake in shares of Colgate-Palmolive during the second quarter valued at about $1,440,000. Williams Jones & Associates LLC raised its stake in shares of Colgate-Palmolive by 1.7% in the second quarter. Williams Jones & Associates LLC now owns 387,183 shares of the company’s stock valued at $28,342,000 after buying an additional 6,641 shares during the period. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Colgate-Palmolive during the second quarter valued at about $2,639,000. Finally, Kentucky Retirement Systems acquired a new stake in shares of Colgate-Palmolive during the second quarter valued at about $5,559,000. Hedge funds and other institutional investors own 73.25% of the company’s stock.
Colgate-Palmolive Company (Colgate) is a consumer products company, whose products are marketed in over 200 countries and territories throughout the world. The Company’s segments include Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care product segment is operated through over five geographic segments, which include North America, Latin America, Europe/South Pacific, Asia and Africa/Eurasia.
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