Colgate-Palmolive (NYSE:CL) Shares Gap Up After Better-Than-Expected Earnings

Colgate-Palmolive (NYSE:CL - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $92.70, but opened at $95.49. Colgate-Palmolive shares last traded at $92.93, with a volume of 1,336,929 shares trading hands.

The company reported $0.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.05. The company had revenue of $4.91 billion during the quarter, compared to analysts' expectations of $4.92 billion. Colgate-Palmolive had a net margin of 14.38% and a return on equity of 477.77%. Colgate-Palmolive's quarterly revenue was down 3.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.86 earnings per share.

Colgate-Palmolive Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 15th. Shareholders of record on Thursday, April 17th will be issued a $0.52 dividend. The ex-dividend date of this dividend is Thursday, April 17th. This represents a $2.08 annualized dividend and a yield of 2.26%. This is a positive change from Colgate-Palmolive's previous quarterly dividend of $0.50. Colgate-Palmolive's dividend payout ratio is presently 59.09%.

Colgate-Palmolive announced that its Board of Directors has approved a stock repurchase program on Thursday, March 20th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 6.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. UBS Group lifted their price target on Colgate-Palmolive from $105.00 to $109.00 and gave the company a "buy" rating in a research report on Thursday, April 17th. Citigroup boosted their price target on Colgate-Palmolive from $103.00 to $108.00 and gave the company a "buy" rating in a report on Monday. Barclays cut their price objective on Colgate-Palmolive from $89.00 to $86.00 and set an "equal weight" rating on the stock in a research report on Friday, April 11th. TD Cowen decreased their target price on shares of Colgate-Palmolive from $110.00 to $100.00 and set a "buy" rating for the company in a research note on Wednesday, January 8th. Finally, JPMorgan Chase & Co. increased their target price on Colgate-Palmolive from $95.00 to $103.00 and gave the stock an "overweight" rating in a research note on Monday. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and twelve have issued a buy rating to the company. Based on data from MarketBeat, Colgate-Palmolive presently has a consensus rating of "Moderate Buy" and a consensus target price of $102.39.

Hedge Funds Weigh In On Colgate-Palmolive

Institutional investors and hedge funds have recently bought and sold shares of the business. Topsail Wealth Management LLC acquired a new stake in shares of Colgate-Palmolive in the first quarter valued at approximately $285,000. Banque Pictet & Cie SA raised its position in Colgate-Palmolive by 26.7% in the first quarter. Banque Pictet & Cie SA now owns 230,437 shares of the company's stock worth $21,592,000 after acquiring an additional 48,597 shares in the last quarter. Axxcess Wealth Management LLC boosted its holdings in shares of Colgate-Palmolive by 21.6% during the first quarter. Axxcess Wealth Management LLC now owns 47,171 shares of the company's stock worth $4,420,000 after purchasing an additional 8,385 shares during the last quarter. Cornerstone Planning Group LLC raised its holdings in shares of Colgate-Palmolive by 1,913.3% in the 1st quarter. Cornerstone Planning Group LLC now owns 302 shares of the company's stock worth $28,000 after purchasing an additional 287 shares during the period. Finally, Flossbach Von Storch SE boosted its position in Colgate-Palmolive by 3.2% during the 1st quarter. Flossbach Von Storch SE now owns 279,336 shares of the company's stock worth $26,174,000 after purchasing an additional 8,741 shares during the period. 80.41% of the stock is currently owned by institutional investors and hedge funds.

Colgate-Palmolive Trading Down 0.3 %

The company has a debt-to-equity ratio of 13.40, a quick ratio of 0.58 and a current ratio of 0.92. The business's 50 day moving average price is $92.23 and its 200-day moving average price is $92.06. The firm has a market cap of $74.68 billion, a price-to-earnings ratio of 26.16, a price-to-earnings-growth ratio of 4.20 and a beta of 0.40.

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.