Kimberly-Clark Corporation $KMB Shares Acquired by Bank of America Corp DE

Key Points

• Bank of America increased its Kimberly-Clark stake by 3.3% in the second quarter, bringing its holdings to 6.88 million shares worth approximately $755.4 million. Institutional investors collectively own 76.29% of KMB.
• Kimberly-Clark’s proposed approximately $40 billion acquisition of Kenvue remains a key focus, with potential European regulatory approval offset by possible asset-sale requirements that could reduce the deal’s strategic benefits.
• KMB has a consensus “Hold” rating and an average price target of $117.36. Shares recently traded near $98.68 after the company missed quarterly EPS estimates, while its $1.28 quarterly dividend implies a 5.2% annualized yield.

Bank of America Corp DE lifted its stake in shares of Kimberly-Clark Corporation (NASDAQ:KMB - Free Report) by 3.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,881,641 shares of the company's stock after purchasing an additional 219,742 shares during the period. Bank of America Corp DE owned approximately 2.07% of Kimberly-Clark worth $755,398,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the stock. Godfrey Financial Associates Inc. acquired a new position in shares of Kimberly-Clark in the fourth quarter worth about $25,000. Motiv8 Investments LLC acquired a new position in Kimberly-Clark in the 4th quarter worth approximately $31,000. Entrust Financial LLC purchased a new position in Kimberly-Clark during the 4th quarter worth approximately $32,000. Edmond DE Rothschild Holding S.A. purchased a new position in Kimberly-Clark during the 2nd quarter worth approximately $32,000. Finally, Ancora Advisors LLC acquired a new stake in Kimberly-Clark during the 2nd quarter valued at $32,000. 76.29% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Kimberly-Clark

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

• Positive Sentiment: Kimberly-Clark is reportedly expected to secure European Commission approval for the Kenvue transaction during the initial review phase. A smoother-than-expected regulatory process could reduce uncertainty surrounding the approximately $40 billion acquisition. Kimberly-Clark expected to win EU approval for Kenvue in phase 1 - report
• Positive Sentiment: Reports that Kimberly-Clark is willing to sell assets to resolve EU competition concerns suggest the company is actively advancing the Kenvue deal. Approval would give KMB access to Kenvue’s consumer-health portfolio, including well-known brands, although the concessions could reduce some strategic benefits. Kimberly-Clark readies EU remedies in bid for Kenvue deal, sources say
• Neutral Sentiment: Market coverage continues to focus on the company’s valuation and the financial complexity of combining Kimberly-Clark with Kenvue. Analysts note that KMB’s share-price discount may look attractive, but the acquisition makes it more difficult to assess the stock’s underlying value. Kimberly-Clark valuation analysis
• Negative Sentiment: Any asset disposals required for EU approval could dilute the deal’s expected strategic advantages and add uncertainty over proceeds, timing and integration. Investors are also weighing the transaction against Kimberly-Clark’s recent earnings miss, which has contributed to weakness in the shares. Kimberly-Clark Moves to Clear EU Hurdle with Kenvue Asset Sales

Analyst Ratings Changes

KMB has been the subject of several recent analyst reports. TD Cowen raised their target price on Kimberly-Clark from $96.00 to $104.00 and gave the stock a "hold" rating in a research report on Wednesday, August 5th. UBS Group increased their price objective on Kimberly-Clark from $115.00 to $116.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Freedom Capital upgraded Kimberly-Clark from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. Weiss Ratings raised Kimberly-Clark from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 28th. Finally, Barclays upped their target price on Kimberly-Clark from $101.00 to $115.00 and gave the company an "equal weight" rating in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $117.36.

Kimberly-Clark Trading Down 0.4%

NASDAQ KMB opened at $98.68 on Wednesday. The company has a current ratio of 0.91, a quick ratio of 0.69 and a debt-to-equity ratio of 3.45. Kimberly-Clark Corporation has a 1-year low of $92.42 and a 1-year high of $126.98. The firm's fifty day simple moving average is $108.09 and its 200-day simple moving average is $103.23. The company has a market capitalization of $32.82 billion, a PE ratio of 16.78, a price-to-earnings-growth ratio of 4.54 and a beta of 0.25.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) last released its quarterly earnings data 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). Kimberly-Clark had a net margin of 11.79% and a return on equity of 143.92%. The firm had revenue of $4.19 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same period in the previous year, the business posted $1.92 EPS. Kimberly-Clark's revenue for the quarter was up .6% on a year-over-year basis. As a group, sell-side analysts anticipate that Kimberly-Clark Corporation will post 7.38 earnings per share for the current fiscal year.

Kimberly-Clark Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 4th will be given a dividend of $1.28 per share. This represents a $5.12 annualized dividend and a yield of 5.2%. The ex-dividend date of this dividend is Friday, September 4th. Kimberly-Clark's dividend payout ratio (DPR) is presently 87.07%.

About Kimberly-Clark

Kimberly-Clark Corporation is a global manufacturer of personal care and consumer tissue products. The company develops and markets products designed to support personal hygiene, health and well-being in households, healthcare settings and workplaces.

Its portfolio includes well-known brands such as Huggies diapers and training pants, Kleenex facial tissues, Cottonelle toilet paper and wipes, Scott toilet paper and paper towels, Kotex feminine care products, and Depend and Poise incontinence care products.

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