Kimberly-Clark (NASDAQ:KMB) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Kimberly-Clark from “hold” to “strong sell,” despite mixed analyst views; the broader consensus remains “hold” with an average price target of $116.50.
• Kimberly-Clark shares opened at $106.64, within a 52-week range of $92.42 to $123.09. The company reported quarterly EPS of $1.80, below the $2.01 analyst consensus, while revenue also slightly missed expectations.
• Institutional investors own approximately 76.29% of the stock, with major firms including BlackRock adding significant positions during the second quarter.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday, Zacks reports.

A number of other brokerages have also commented on KMB. Weiss Ratings raised Kimberly-Clark from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. TD Cowen dropped their price target on Kimberly-Clark from $104.00 to $97.00 and set a "hold" rating on the stock in a research note on Tuesday, October 13th. BNP Paribas Exane increased their price target on Kimberly-Clark from $101.00 to $110.00 and gave the stock a "neutral" rating in a report on Friday, October 16th. Seaport Research Partners raised Kimberly-Clark to a "buy" rating in a research note on Tuesday, August 4th. Finally, Freedom Capital raised Kimberly-Clark from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $116.50.

Kimberly-Clark Price Performance

Shares of KMB opened at $106.64 on Tuesday. Kimberly-Clark has a 52-week low of $92.42 and a 52-week high of $123.09. The company has a debt-to-equity ratio of 3.45, a quick ratio of 0.69 and a current ratio of 0.91. The business's 50 day moving average price is $102.67 and its two-hundred day moving average price is $102.87. The firm has a market cap of $35.47 billion, a PE ratio of 18.14, a price-to-earnings-growth ratio of 5.86 and a beta of 0.25.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $1.80 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.01 by ($0.21). The business had revenue of $4.19 billion for the quarter, compared to the consensus estimate of $4.22 billion. Kimberly-Clark had a return on equity of 143.92% and a net margin of 11.79%. Kimberly-Clark's quarterly revenue was up .6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.92 earnings per share. On average, equities analysts anticipate that Kimberly-Clark will post 6.83 EPS for the current year.

Institutional Trading of Kimberly-Clark

A number of large investors have recently added to or reduced their stakes in KMB. BlackRock Inc. purchased a new position in Kimberly-Clark in the second quarter valued at about $3,547,915,000. Thornburg Investment Management Inc. purchased a new stake in shares of Kimberly-Clark during the 2nd quarter worth approximately $632,373,000. Bank of New York Mellon Corp purchased a new stake in shares of Kimberly-Clark during the 2nd quarter worth approximately $239,612,000. Legal & General Group Plc bought a new stake in shares of Kimberly-Clark in the 2nd quarter worth approximately $223,668,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new stake in shares of Kimberly-Clark in the 2nd quarter worth approximately $188,902,000. Hedge funds and other institutional investors own 76.29% of the company's stock.

Key Kimberly-Clark News

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: China antitrust approval removes a major regulatory hurdle for Kimberly-Clark’s proposed Kenvue acquisition, improving the deal’s closing prospects and potentially expanding the company’s consumer-health portfolio. Kimberly-Clark’s $40B purchase of Kenvue wins China antitrust approval
• Positive Sentiment: Bank of America maintained a Buy rating and a $120 price target, citing strong execution and earnings momentum. That view provides a bullish counterpoint to concerns surrounding the acquisition and financing. Kimberly-Clark maintained at Buy with $120 price target
• Positive Sentiment: Kimberly-Clark de México reported margin gains and a strong cash position in the third quarter, suggesting improving operating performance in an important regional business. Kimberly-Clark de México third-quarter results
• Neutral Sentiment: Commentary comparing Kimberly-Clark with Clorox highlights that both companies offer yields above 4.5% but are undergoing overhauls, making execution and balance-sheet strength more important than headline yield alone. Kimberly-Clark vs. Clorox dividend comparison
• Negative Sentiment: Kimberly-Clark priced $4.9 billion of senior unsecured notes to help fund the Kenvue transaction. The financing increases leverage and interest obligations, intensifying investor concerns about balance-sheet risk and future dividend flexibility. Kimberly-Clark prices $4.9 billion notes for Kenvue deal
• Negative Sentiment: Recent analysis questions whether Kimberly-Clark’s long dividend record is adequately supported by free cash flow, particularly as payout ratios leave little cushion and the company takes on acquisition debt. Jim Cramer calls Kimberly-Clark a hated Dividend King

Kimberly-Clark Company Profile

Kimberly-Clark Corporation NASDAQ: KMB is a global consumer products company that develops and markets personal care, tissue and professional hygiene products. Its portfolio includes products for babies and children, feminine care, adult care, family care and workplace hygiene.

The company's well-known brands include Huggies diapers and wipes, Kleenex facial tissue, Cottonelle bathroom tissue, Scott toilet paper and paper towels, Kotex feminine care products, and Depend, Poise and GoodNites products.

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