Colgate-Palmolive Company (NYSE:CL) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Nineteen brokerages rate Colgate-Palmolive “Moderate Buy,” with 12 buys and seven holds. The average 12-month price target is $99, compared with the stock’s reported opening price of $89.89.
• Quarterly results exceeded expectations: Colgate-Palmolive reported earnings of $0.99 per share versus the $0.95 consensus estimate, while revenue reached $5.36 billion, up 4.9% year over year.
• The company maintains an income-focused profile: Its quarterly dividend of $0.53 per share equates to a $2.12 annualized payout and a 2.4% yield, though the payout ratio is relatively high at 84.13%.

Shares of Colgate-Palmolive Company (NYSE:CL - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the nineteen brokerages that are currently covering the company, MarketBeat.com reports. Seven research analysts have rated the stock with a hold recommendation and twelve have issued a buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $99.00.

A number of research analysts recently commented on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Colgate-Palmolive in a research report on Friday, July 31st. Piper Sandler lifted their target price on shares of Colgate-Palmolive from $92.00 to $96.00 and gave the company an "overweight" rating in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $101.00 price target on shares of Colgate-Palmolive in a report on Monday, August 3rd. JPMorgan Chase & Co. dropped their target price on Colgate-Palmolive from $104.00 to $103.00 and set an "overweight" rating on the stock in a research report on Monday, August 3rd. Finally, TD Cowen raised their price target on Colgate-Palmolive from $85.00 to $90.00 and gave the stock a "hold" rating in a research note on Monday, August 3rd.

Colgate-Palmolive Stock Performance

Shares of Colgate-Palmolive stock opened at $89.89 on Friday. Colgate-Palmolive has a 12 month low of $74.54 and a 12 month high of $99.33. The company has a quick ratio of 0.67, a current ratio of 1.03 and a debt-to-equity ratio of 13.82. The stock has a market cap of $71.66 billion, a PE ratio of 35.67, a price-to-earnings-growth ratio of 4.20 and a beta of 0.33. The business has a fifty day simple moving average of $91.95 and a 200-day simple moving average of $89.88.

Colgate-Palmolive (NYSE:CL - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The company reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.04. Colgate-Palmolive had a return on equity of 464.63% and a net margin of 9.68%.The firm had revenue of $5.36 billion during the quarter, compared to the consensus estimate of $5.36 billion. During the same period in the prior year, the business earned $0.92 EPS. The business's revenue for the quarter was up 4.9% on a year-over-year basis. On average, sell-side analysts anticipate that Colgate-Palmolive will post 3.87 EPS for the current fiscal year.

Colgate-Palmolive Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Monday, July 20th were paid a dividend of $0.53 per share. The ex-dividend date was Monday, July 20th. This represents a $2.12 annualized dividend and a dividend yield of 2.4%. Colgate-Palmolive's dividend payout ratio is 84.13%.

Insider Activity

In other Colgate-Palmolive news, COO Panagiotis Tsourapas sold 10,000 shares of the stock in a transaction on Monday, August 24th. The shares were sold at an average price of $92.05, for a total transaction of $920,500.00. Following the transaction, the chief operating officer directly owned 64,901 shares of the company's stock, valued at $5,974,137.05. This represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John T. Cahill sold 4,170 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $93.37, for a total value of $389,352.90. Following the completion of the transaction, the director directly owned 28,373 shares in the company, valued at $2,649,187.01. The trade was a 12.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 175,191 shares of company stock worth $16,110,903. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System grew its stake in shares of Colgate-Palmolive by 8,327.8% in the second quarter. California State Teachers Retirement System now owns 107,033,741 shares of the company's stock worth $9,812,853,000 after acquiring an additional 105,763,733 shares during the last quarter. Norges Bank bought a new stake in shares of Colgate-Palmolive in the 4th quarter valued at approximately $861,670,000. Bank of New York Mellon Corp grew its position in Colgate-Palmolive by 172.5% in the first quarter. Bank of New York Mellon Corp now owns 12,521,545 shares of the company's stock valued at $1,067,211,000 after acquiring an additional 7,927,238 shares during the period. Bank of America Corp DE bought a new stake in shares of Colgate-Palmolive in the 2nd quarter worth about $567,483,000. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in shares of Colgate-Palmolive by 8,040.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 4,655,987 shares of the company's stock worth $380,666,000 after buying an additional 4,598,789 shares in the last quarter. 80.41% of the stock is currently owned by institutional investors and hedge funds.

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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