Colgate-Palmolive (CL) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Colgate-Palmolive (NYSE:CL) from a buy rating to a hold rating in a research note released on Monday morning, Zacks.com reports.

According to Zacks, “Colgate surpassed the industry year to date owing to a robust surprise trend, which continued in first-quarter 2019. This marked the company’s second straight quarter of sales beat and third positive earnings surprise of the last five quarters. Further, robust volumes and favorable pricing aided organic sales growth in the quarter. In 2019, the company expects benefits of pricing and productivity programs to considerably offset rise in raw material costs. Further, accelerated investments in brands, strong innovation, and expansion in new markets and channels, is likely to aid sales growth in 2019. However, the company is plagued with a soft margin trend and currency headwinds for a while now. Soft margins in first-quarter 2019 were due to increased raw material and packaging costs as well as higher SG&A expenses, which should continue throughout 2019. Further, adverse currency is likely to mar earnings and sales in 2019.”

Several other equities research analysts have also weighed in on the company. BNP Paribas upgraded Colgate-Palmolive from an underperform rating to a neutral rating and upped their price objective for the company from $56.00 to $67.00 in a research note on Monday, February 11th. Jefferies Financial Group reiterated a hold rating and issued a $61.00 price objective on shares of Colgate-Palmolive in a research note on Friday, February 1st. Morgan Stanley set a $62.00 price objective on Colgate-Palmolive and gave the company a hold rating in a research note on Tuesday, January 29th. Wells Fargo & Co reiterated a hold rating and issued a $57.00 price objective on shares of Colgate-Palmolive in a research note on Friday, January 25th. Finally, JPMorgan Chase & Co. upgraded Colgate-Palmolive from an underweight rating to a neutral rating and upped their price objective for the company from $62.00 to $70.00 in a research note on Monday, April 29th. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating and five have issued a buy rating to the stock. The company has a consensus rating of Hold and a consensus target price of $69.69.



Shares of CL opened at $71.56 on Monday. Colgate-Palmolive has a 12-month low of $57.41 and a 12-month high of $72.85. The stock has a market cap of $61.38 billion, a P/E ratio of 24.09, a PEG ratio of 4.64 and a beta of 0.81. The company has a debt-to-equity ratio of 32.25, a quick ratio of 0.74 and a current ratio of 1.07.

Colgate-Palmolive (NYSE:CL) last released its quarterly earnings data on Friday, April 26th. The company reported $0.67 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.01. Colgate-Palmolive had a negative return on equity of 3,730.37% and a net margin of 15.08%. The company had revenue of $3.88 billion for the quarter, compared to analyst estimates of $3.86 billion. During the same period in the prior year, the company posted $0.74 EPS. The company’s revenue was down 2.9% compared to the same quarter last year. Analysts anticipate that Colgate-Palmolive will post 2.83 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Friday, April 19th will be issued a $0.43 dividend. This is an increase from Colgate-Palmolive’s previous quarterly dividend of $0.42. This represents a $1.72 annualized dividend and a dividend yield of 2.40%. The ex-dividend date of this dividend is Wednesday, April 17th. Colgate-Palmolive’s payout ratio is presently 57.91%.

In other Colgate-Palmolive news, CEO Ian M. Cook sold 22,634 shares of the company’s stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $66.31, for a total transaction of $1,500,860.54. Following the transaction, the chief executive officer now owns 1,162,793 shares of the company’s stock, valued at approximately $77,104,803.83. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP John J. Huston sold 1,512 shares of the company’s stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $66.29, for a total value of $100,230.48. Following the transaction, the senior vice president now directly owns 75,180 shares in the company, valued at approximately $4,983,682.20. The disclosure for this sale can be found here. Insiders sold a total of 352,831 shares of company stock worth $24,752,192 over the last three months. 1.14% of the stock is owned by company insiders.

Large investors have recently bought and sold shares of the business. KC Investment Advisors LLC lifted its stake in shares of Colgate-Palmolive by 7.2% in the 1st quarter. KC Investment Advisors LLC now owns 5,898 shares of the company’s stock valued at $404,000 after purchasing an additional 398 shares during the period. Westwood Holdings Group Inc. lifted its stake in shares of Colgate-Palmolive by 0.5% in the 1st quarter. Westwood Holdings Group Inc. now owns 1,260,461 shares of the company’s stock valued at $86,392,000 after purchasing an additional 6,665 shares during the period. Wealthfront Advisers LLC lifted its stake in shares of Colgate-Palmolive by 3.0% in the 1st quarter. Wealthfront Advisers LLC now owns 34,251 shares of the company’s stock valued at $2,348,000 after purchasing an additional 1,006 shares during the period. O Shares Investment Advisers LLC increased its position in shares of Colgate-Palmolive by 3.0% in the 1st quarter. O Shares Investment Advisers LLC now owns 59,458 shares of the company’s stock valued at $4,075,000 after buying an additional 1,736 shares in the last quarter. Finally, Alphasimplex Group LLC bought a new stake in shares of Colgate-Palmolive in the 1st quarter valued at $393,000. 75.99% of the stock is currently owned by hedge funds and other institutional investors.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. It offers oral care products, including toothpastes, toothbrushes, and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; and personal care products, such as liquid hand soaps, bar soaps, shower gels, deodorants and antiperspirants, skin care products, and shampoos and conditioners.

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