Zacks Investment Research downgraded shares of Colgate-Palmolive (NYSE:CL) from a hold rating to a sell rating in a research note released on Monday, Zacks.com reports. The brokerage currently has $70.00 price target on the stock.
According to Zacks, “Shares of Colgate have declined and underperformed the industry in the past six months, driven by its strained margin trend. In third-quarter 2019, escalated expenses of raw and packaging materials, including foreign-currency transaction costs, hurt gross margin. This coupled with higher SG&A expenses, as a rate of sales, hurt operating profits. Consequently, earnings fell year over year and are likely to decline in mid-single digits in 2019. Also, adverse currency impacts cannot be ignored. Nevertheless, Colgate expects strong top-line gains from accelerated investments in brands, pricing and innovation along with expansion in new markets and e-commerce capabilities. Moreover, it expects to sustain organic sales growth trend in 2019, backed by higher volume and pricing. Management now estimates organic sales growth of 3-4%.”
A number of other equities analysts also recently weighed in on CL. ValuEngine downgraded shares of Colgate-Palmolive from a buy rating to a hold rating in a research note on Thursday, August 1st. Citigroup raised their target price on shares of Colgate-Palmolive from $77.00 to $79.00 and gave the company a neutral rating in a research note on Tuesday, August 20th. UBS Group raised their target price on shares of Colgate-Palmolive from $80.00 to $82.00 and gave the company a buy rating in a research note on Monday, July 29th. JPMorgan Chase & Co. decreased their target price on shares of Colgate-Palmolive from $78.00 to $76.00 and set a neutral rating for the company in a research note on Monday, October 14th. Finally, Wells Fargo & Co raised their target price on shares of Colgate-Palmolive from $68.00 to $70.00 and gave the company a market perform rating in a research note on Monday, July 29th. Four research analysts have rated the stock with a sell rating, eight have given a hold rating and six have issued a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $72.57.
Colgate-Palmolive (NYSE:CL) last announced its earnings results on Friday, November 1st. The company reported $0.71 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.01. Colgate-Palmolive had a net margin of 15.04% and a return on equity of 6,492.71%. The business had revenue of $3.93 billion during the quarter, compared to the consensus estimate of $3.95 billion. During the same quarter last year, the firm earned $0.72 earnings per share. The business’s revenue for the quarter was up 2.2% on a year-over-year basis. Research analysts expect that Colgate-Palmolive will post 2.83 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Stockholders of record on Wednesday, October 23rd will be issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a dividend yield of 2.58%. The ex-dividend date of this dividend is Tuesday, October 22nd. Colgate-Palmolive’s payout ratio is 57.91%.
In related news, Chairman Ian M. Cook sold 17,750 shares of the firm’s stock in a transaction that occurred on Wednesday, October 30th. The shares were sold at an average price of $68.30, for a total value of $1,212,325.00. Following the sale, the chairman now owns 995,075 shares in the company, valued at $67,963,622.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Prabha Parameswaran sold 4,221 shares of the firm’s stock in a transaction that occurred on Wednesday, September 11th. The stock was sold at an average price of $71.68, for a total transaction of $302,561.28. Following the completion of the sale, the insider now owns 16,793 shares in the company, valued at approximately $1,203,722.24. The disclosure for this sale can be found here. In the last quarter, insiders have sold 193,361 shares of company stock worth $13,722,098. Corporate insiders own 1.14% of the company’s stock.
A number of hedge funds have recently modified their holdings of the stock. Smith Shellnut Wilson LLC ADV boosted its holdings in Colgate-Palmolive by 6.9% in the third quarter. Smith Shellnut Wilson LLC ADV now owns 4,785 shares of the company’s stock worth $352,000 after purchasing an additional 308 shares during the last quarter. First Allied Advisory Services Inc. boosted its holdings in Colgate-Palmolive by 4.2% in the third quarter. First Allied Advisory Services Inc. now owns 39,492 shares of the company’s stock worth $2,897,000 after purchasing an additional 1,590 shares during the last quarter. Cetera Advisors LLC boosted its holdings in Colgate-Palmolive by 1.9% in the third quarter. Cetera Advisors LLC now owns 20,393 shares of the company’s stock worth $1,501,000 after purchasing an additional 388 shares during the last quarter. Miracle Mile Advisors LLC boosted its holdings in Colgate-Palmolive by 3.5% in the third quarter. Miracle Mile Advisors LLC now owns 25,297 shares of the company’s stock worth $1,860,000 after purchasing an additional 855 shares during the last quarter. Finally, Trillium Asset Management LLC boosted its holdings in Colgate-Palmolive by 41.2% in the third quarter. Trillium Asset Management LLC now owns 6,992 shares of the company’s stock worth $514,000 after purchasing an additional 2,039 shares during the last quarter. Institutional investors own 76.09% of the company’s stock.
Colgate-Palmolive Company Profile
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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