Zacks Investment Research cut shares of Colgate-Palmolive (NYSE:CL) from a hold rating to a sell rating in a research note issued to investors on Monday morning.
According to Zacks, “Colgate lagged the industry in the past three months due to its dismal sales trend. Notably, sales missed estimates in 21 of the last 22 quarters, including third-quarter 2018. Also, sales dipped year over year due to currency headwinds, trade inventory reductions in China and volatility in Brazil. It continues to anticipate a challenging backdrop due to uncertain global markets and slowing category growth worldwide. Consequently, it expects sales to decline low-single digits in the fourth quarter. Additionally, the company continues to witness strained gross and operating margins trend for the last few quarters, which is likely to persist in 2018. However, the company’s earnings retained its meet or beat track record as bottom line were in line with estimates in the third quarter. Further, the company provided a favorable earnings view for 2018. It also remains optimistic about brand building and productivity maximization initiatives.”
A number of other brokerages have also recently issued reports on CL. Macquarie cut shares of Colgate-Palmolive from an outperform rating to a neutral rating and lowered their price target for the company from $74.00 to $65.00 in a research report on Monday, July 30th. Argus reissued a buy rating and set a $75.00 price target (up from $72.00) on shares of Colgate-Palmolive in a research report on Tuesday, September 18th. Citigroup lowered their price target on shares of Colgate-Palmolive from $68.00 to $63.00 and set a hold rating for the company in a research report on Monday. Wells Fargo & Co lowered their price target on shares of Colgate-Palmolive from $62.00 to $58.00 and set a market perform rating for the company in a research report on Monday. Finally, SunTrust Banks cut shares of Colgate-Palmolive from a buy rating to a hold rating and lowered their price target for the company from $80.00 to $65.00 in a research report on Friday, October 26th. Four equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company. Colgate-Palmolive has a consensus rating of Hold and an average price target of $68.06.
NYSE:CL opened at $60.08 on Monday. Colgate-Palmolive has a 12 month low of $57.41 and a 12 month high of $77.91. The company has a debt-to-equity ratio of 64.85, a current ratio of 1.11 and a quick ratio of 0.28. The stock has a market capitalization of $52.20 billion, a PE ratio of 20.93, a P/E/G ratio of 2.96 and a beta of 0.72.
Colgate-Palmolive (NYSE:CL) last posted its earnings results on Friday, October 26th. The company reported $0.72 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.72. Colgate-Palmolive had a net margin of 13.55% and a return on equity of 12,004.60%. The firm had revenue of $3.85 billion during the quarter, compared to analysts’ expectations of $3.89 billion. During the same period last year, the company posted $0.73 EPS. The company’s quarterly revenue was down 3.2% compared to the same quarter last year. As a group, research analysts forecast that Colgate-Palmolive will post 2.96 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Friday, October 19th will be given a dividend of $0.42 per share. The ex-dividend date is Thursday, October 18th. This represents a $1.68 dividend on an annualized basis and a yield of 2.80%. Colgate-Palmolive’s dividend payout ratio (DPR) is currently 58.54%.
In other Colgate-Palmolive news, SVP John J. Huston sold 19,774 shares of Colgate-Palmolive stock in a transaction dated Friday, August 10th. The shares were sold at an average price of $65.56, for a total value of $1,296,383.44. Following the completion of the transaction, the senior vice president now directly owns 97,300 shares of the company’s stock, valued at $6,378,988. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Philip G. Shotts sold 462 shares of Colgate-Palmolive stock in a transaction dated Tuesday, September 11th. The stock was sold at an average price of $67.05, for a total transaction of $30,977.10. Following the completion of the transaction, the vice president now directly owns 41,250 shares of the company’s stock, valued at $2,765,812.50. The disclosure for this sale can be found here. Over the last three months, insiders have sold 169,585 shares of company stock valued at $11,132,140. 1.02% of the stock is currently owned by corporate insiders.
Institutional investors have recently modified their holdings of the business. Macquarie Group Ltd. grew its stake in shares of Colgate-Palmolive by 203.2% in the second quarter. Macquarie Group Ltd. now owns 34,569 shares of the company’s stock worth $2,241,000 after acquiring an additional 23,169 shares during the period. Schwab Charles Investment Management Inc. grew its stake in shares of Colgate-Palmolive by 2.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 3,233,699 shares of the company’s stock worth $209,577,000 after acquiring an additional 70,318 shares during the period. Tower Research Capital LLC TRC grew its stake in shares of Colgate-Palmolive by 823.1% in the second quarter. Tower Research Capital LLC TRC now owns 11,077 shares of the company’s stock worth $718,000 after acquiring an additional 9,877 shares during the period. Centaurus Financial Inc. grew its stake in shares of Colgate-Palmolive by 147.5% in the second quarter. Centaurus Financial Inc. now owns 8,262 shares of the company’s stock worth $535,000 after acquiring an additional 4,924 shares during the period. Finally, Fundsmith Equity Fund L.P. bought a new stake in shares of Colgate-Palmolive in the second quarter worth approximately $232,451,000. 75.17% of the stock is owned by institutional investors and hedge funds.
Colgate-Palmolive Company Profile
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. It operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The company offers oral care products, including toothpastes, toothbrushes, and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; personal care products comprising bar and liquid hand soaps, shower gels, shampoos, conditioners, and deodorants and antiperspirants; and home care products, such as laundry and dishwashing detergents, fabric conditioners, household cleaners, and other related products.
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