Haleon (NYSE:HLN) Shares Gap Down on Analyst Downgrade

Key Points

• Haleon PLC shares experienced a significant gap down after Barclays downgraded the stock from an overweight to an equal weight rating, opening at $9.35 from a previous close of $9.68.
• The company also recently declared an increase in its semi-annual dividend to $0.0555 per share, reflecting a yield of 190.0% with a dividend payout ratio of 28.21%.
• Haleon maintains a Moderate Buy average rating from analysts, with a target price of $12.33 based on various assessments from equity research analysts.

Haleon PLC Sponsored ADR (NYSE:HLN - Get Free Report) shares gapped down prior to trading on Tuesday after Barclays downgraded the stock from an overweight rating to an equal weight rating. The stock had previously closed at $9.68, but opened at $9.35. Haleon shares last traded at $9.41, with a volume of 1,481,405 shares changing hands.

A number of other equities research analysts have also recently commented on HLN. Wall Street Zen cut Haleon from a "buy" rating to a "hold" rating in a research note on Saturday, July 12th. BNP Paribas Exane upgraded Haleon from a "neutral" rating to an "outperform" rating and set a $13.40 price objective on the stock in a research report on Tuesday, May 27th. The Goldman Sachs Group raised Haleon from a "neutral" rating to a "buy" rating in a research report on Wednesday, September 10th. Finally, BNP Paribas upgraded Haleon to a "strong-buy" rating in a report on Tuesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Haleon currently has a consensus rating of "Moderate Buy" and an average price target of $12.33.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Hanson & Doremus Investment Management raised its position in Haleon by 234.1% during the second quarter. Hanson & Doremus Investment Management now owns 2,372 shares of the company's stock valued at $25,000 after purchasing an additional 1,662 shares in the last quarter. Bartlett & CO. Wealth Management LLC lifted its stake in shares of Haleon by 135.9% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 2,588 shares of the company's stock valued at $27,000 after buying an additional 1,491 shares in the last quarter. Golden State Wealth Management LLC lifted its position in shares of Haleon by 107.6% during the second quarter. Golden State Wealth Management LLC now owns 2,721 shares of the company's stock valued at $28,000 after purchasing an additional 1,410 shares in the last quarter. Banque Transatlantique SA purchased a new stake in Haleon during the first quarter worth about $27,000. Finally, Opal Wealth Advisors LLC purchased a new stake in Haleon during the first quarter worth about $29,000. 6.67% of the stock is currently owned by institutional investors and hedge funds.

Haleon Price Performance

The firm's 50 day moving average price is $9.66 and its two-hundred day moving average price is $10.17. The stock has a market cap of $41.00 billion, a PE ratio of 23.49, a P/E/G ratio of 2.73 and a beta of 0.24. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.87 and a quick ratio of 0.63.

Haleon Increases Dividend

The firm also recently announced a semi-annual dividend, which was paid on Thursday, September 18th. Stockholders of record on Friday, August 15th were given a $0.0555 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a dividend yield of 190.0%. This is a boost from Haleon's previous semi-annual dividend of $0.05. Haleon's payout ratio is currently 28.21%.

Haleon Company Profile

Haleon plc, together with its subsidiaries, engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands.