Colgate-Palmolive Target of Unusually High Options Trading (NYSE:CL)

Key Points

• Colgate-Palmolive saw unusually large options activity as investors bought 13,701 put options, a 171% increase versus the average daily put volume, signaling elevated bearish positioning or hedging interest.
• The company raised its quarterly dividend to $0.53 (annualized $2.12, yield 2.5%) and posted a recent quarter that beat estimates with $0.95 EPS vs. $0.91 and $5.23B in revenue, up 5.8% year-over-year.
• Corporate insiders have been net sellers, offloading a total of 184,683 shares worth $17.49M over the last three months, leaving insiders with just 0.43% ownership.

Colgate-Palmolive Company (NYSE:CL - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors acquired 13,701 put options on the company. This represents an increase of 171% compared to the average daily volume of 5,065 put options.

Colgate-Palmolive Stock Up 0.3%

Shares of NYSE:CL traded up $0.23 during midday trading on Tuesday, hitting $84.21. 2,363,823 shares of the stock were exchanged, compared to its average volume of 6,807,987. The company has a debt-to-equity ratio of 18.82, a quick ratio of 0.54 and a current ratio of 0.83. Colgate-Palmolive has a 52-week low of $74.54 and a 52-week high of $99.33. The business's fifty day simple moving average is $90.78 and its two-hundred day simple moving average is $83.64. The company has a market capitalization of $67.56 billion, a PE ratio of 32.15, a P/E/G ratio of 3.89 and a beta of 0.34.

Colgate-Palmolive (NYSE:CL - Get Free Report) last released its quarterly earnings data on Friday, January 30th. The company reported $0.95 EPS for the quarter, topping analysts' consensus estimates of $0.91 by $0.04. The firm had revenue of $5.23 billion for the quarter, compared to the consensus estimate of $5.13 billion. Colgate-Palmolive had a return on equity of 353.72% and a net margin of 10.45%.The firm's revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.91 earnings per share. As a group, research analysts predict that Colgate-Palmolive will post 3.75 earnings per share for the current fiscal year.

Colgate-Palmolive Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Monday, April 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Monday, April 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.5%. This is a positive change from Colgate-Palmolive's previous quarterly dividend of $0.52. Colgate-Palmolive's payout ratio is currently 79.39%.

Analyst Ratings Changes

A number of equities analysts recently commented on CL shares. UBS Group decreased their price objective on shares of Colgate-Palmolive from $100.00 to $98.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Morgan Stanley increased their target price on Colgate-Palmolive from $87.00 to $100.00 and gave the company an "overweight" rating in a report on Monday, February 2nd. Wells Fargo & Company lowered their price target on Colgate-Palmolive from $100.00 to $92.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 8th. Piper Sandler reduced their price objective on Colgate-Palmolive from $96.00 to $92.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Finally, Wall Street Zen downgraded Colgate-Palmolive from a "buy" rating to a "hold" rating in a report on Sunday, March 29th. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $95.56.

Insider Buying and Selling

In other news, insider John Hazlin sold 20,989 shares of the company's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $94.25, for a total transaction of $1,978,213.25. Following the completion of the sale, the insider directly owned 17,645 shares of the company's stock, valued at $1,663,041.25. This represents a 54.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Stanley J. Sutula III sold 97,843 shares of Colgate-Palmolive stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $94.27, for a total value of $9,223,659.61. Following the completion of the transaction, the chief financial officer directly owned 55,310 shares in the company, valued at $5,214,073.70. This represents a 63.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 184,683 shares of company stock worth $17,486,693 over the last three months. Corporate insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Colgate-Palmolive

Large investors have recently added to or reduced their stakes in the stock. Cornerstone Planning LLC acquired a new stake in shares of Colgate-Palmolive in the fourth quarter valued at about $1,442,000. Rockefeller Capital Management L.P. lifted its position in shares of Colgate-Palmolive by 6.1% during the 4th quarter. Rockefeller Capital Management L.P. now owns 182,223 shares of the company's stock worth $14,399,000 after purchasing an additional 10,512 shares during the last quarter. World Investment Advisors boosted its stake in Colgate-Palmolive by 102.4% during the 4th quarter. World Investment Advisors now owns 25,704 shares of the company's stock valued at $2,031,000 after purchasing an additional 13,007 shares during the period. Corient Private Wealth LLC grew its holdings in Colgate-Palmolive by 13.6% in the 4th quarter. Corient Private Wealth LLC now owns 541,110 shares of the company's stock valued at $42,789,000 after buying an additional 64,926 shares during the last quarter. Finally, Auto Owners Insurance Co increased its position in Colgate-Palmolive by 7,802.0% in the 4th quarter. Auto Owners Insurance Co now owns 442,512 shares of the company's stock worth $3,497,000 after buying an additional 436,912 shares during the period. Institutional investors own 80.41% of the company's stock.

Colgate-Palmolive Company Profile

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company's core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.

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