Colgate-Palmolive (NYSE:CL) Reaches New 12-Month Low - Here's What Happened

Key Points

• Colgate-Palmolive shares hit a new 12-month low, trading as low as $77.09 before closing at $78.99 with over 7.36 million shares exchanged.
• Analyst ratings have varied, with Morgan Stanley lowering its target price to $96.00 while others like UBS and Wells Fargo have also adjusted their targets, reflecting mixed investor sentiment.
• The company recently announced a quarterly dividend of $0.52, indicating a yield of 2.6%, while maintaining a payout ratio of 58.43%.

Shares of Colgate-Palmolive Company (NYSE:CL - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $77.09 and last traded at $78.99, with a volume of 7361319 shares trading hands. The stock had previously closed at $77.45.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on CL shares. Morgan Stanley dropped their target price on shares of Colgate-Palmolive from $104.00 to $96.00 and set an "overweight" rating for the company in a report on Monday, August 4th. UBS Group lowered their price target on Colgate-Palmolive from $109.00 to $106.00 and set a "buy" rating for the company in a research report on Thursday, July 17th. Wells Fargo & Company cut their price objective on Colgate-Palmolive from $83.00 to $80.00 and set an "underweight" rating on the stock in a research report on Thursday, September 25th. Piper Sandler initiated coverage on Colgate-Palmolive in a research note on Friday. They set a "neutral" rating and a $84.00 target price on the stock. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Colgate-Palmolive in a research note on Saturday, September 27th. Seven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Colgate-Palmolive has a consensus rating of "Hold" and an average target price of $94.83.

Colgate-Palmolive Price Performance

The company has a debt-to-equity ratio of 6.79, a current ratio of 0.89 and a quick ratio of 0.57. The firm's 50 day moving average is $82.95 and its 200 day moving average is $88.15. The firm has a market cap of $63.84 billion, a P/E ratio of 22.19, a price-to-earnings-growth ratio of 4.03 and a beta of 0.34.

Colgate-Palmolive (NYSE:CL - Get Free Report) last announced its earnings results on Friday, August 1st. The company reported $0.92 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $0.03. Colgate-Palmolive had a net margin of 14.55% and a return on equity of 377.63%. The business had revenue of $5.11 billion during the quarter, compared to the consensus estimate of $5.03 billion. During the same quarter last year, the firm earned $0.91 earnings per share. The business's revenue for the quarter was up 1.0% on a year-over-year basis. As a group, analysts anticipate that Colgate-Palmolive Company will post 3.75 earnings per share for the current year.

Colgate-Palmolive Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, November 14th. Shareholders of record on Friday, October 17th will be issued a $0.52 dividend. This represents a $2.08 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Friday, October 17th. Colgate-Palmolive's payout ratio is 58.43%.

Hedge Funds Weigh In On Colgate-Palmolive

Several large investors have recently modified their holdings of CL. Vanguard Group Inc. grew its position in Colgate-Palmolive by 1.2% during the 2nd quarter. Vanguard Group Inc. now owns 82,751,689 shares of the company's stock valued at $7,522,129,000 after purchasing an additional 993,432 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Colgate-Palmolive by 18.3% in the first quarter. Price T Rowe Associates Inc. MD now owns 34,009,078 shares of the company's stock worth $3,186,651,000 after buying an additional 5,269,140 shares in the last quarter. Norges Bank purchased a new stake in shares of Colgate-Palmolive during the second quarter valued at approximately $960,390,000. Goldman Sachs Group Inc. increased its position in shares of Colgate-Palmolive by 34.5% during the first quarter. Goldman Sachs Group Inc. now owns 7,980,387 shares of the company's stock valued at $747,762,000 after acquiring an additional 2,045,191 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Colgate-Palmolive by 9.1% in the 2nd quarter. Invesco Ltd. now owns 7,489,050 shares of the company's stock valued at $680,755,000 after acquiring an additional 621,841 shares in the last quarter. Hedge funds and other institutional investors own 80.41% of the company's stock.

Colgate-Palmolive Company Profile

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items.

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