Colgate-Palmolive (NYSE:CL) Stock Sees Unusually High Put Option Buying

Key Points

• Put option activity surged: Traders bought 4,443 Colgate-Palmolive put options, about 71% above the average volume of 2,605, signaling heightened bearish or hedging activity.
• Shares fell 3.1% to $94.36 in Friday trading, while the company reported quarterly earnings of $0.99 per share, exceeding estimates, and revenue rose 4.9% year over year to $5.36 billion.
• Analyst sentiment remains positive: The stock has a “Moderate Buy” consensus rating and an average price target of $98, while Colgate-Palmolive announced a quarterly dividend of $0.53 per share, yielding approximately 2.2%.

Colgate-Palmolive Company (NYSE:CL - Get Free Report) saw unusually large options trading on Friday. Traders bought 4,443 put options on the company. This is an increase of approximately 71% compared to the average volume of 2,605 put options.

Colgate-Palmolive Stock Down 3.1%

Shares of Colgate-Palmolive stock traded down $3.03 on Friday, reaching $94.36. The company's stock had a trading volume of 538,204 shares, compared to its average volume of 5,626,829. 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 company has a market capitalization of $75.22 billion, a price-to-earnings ratio of 37.50, a P/E/G ratio of 4.52 and a beta of 0.33. The firm's fifty day simple moving average is $89.22 and its two-hundred day simple moving average is $89.31. Colgate-Palmolive has a 52 week low of $74.54 and a 52 week high of $99.33.

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

Colgate-Palmolive Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Tuesday, October 20th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, October 20th. Colgate-Palmolive's payout ratio is 84.13%.

Analysts Set New Price Targets

Several equities research analysts recently commented on CL shares. Morgan Stanley reaffirmed an "overweight" rating and set a $104.00 target price (up from $100.00) on shares of Colgate-Palmolive in a research note on Monday, August 3rd. TD Cowen upped their price target on Colgate-Palmolive from $85.00 to $90.00 and gave the company a "hold" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. increased their price target on shares of Colgate-Palmolive from $103.00 to $104.00 and gave the stock an "overweight" rating in a report on Monday. Barclays upped their price target on shares of Colgate-Palmolive from $80.00 to $87.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 21st. Finally, Citigroup raised their target price on Colgate-Palmolive from $105.00 to $110.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Thirteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $98.00.

Insider Activity at Colgate-Palmolive

In related news, CEO Noel R. Wallace sold 161,021 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $91.92, for a total value of $14,801,050.32. Following the sale, the chief executive officer owned 362,231 shares in the company, valued at approximately $33,296,273.52. This represents a 30.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director John T. Cahill sold 4,170 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $93.37, for a total transaction of $389,352.90. Following the transaction, the director owned 28,373 shares in the company, valued at approximately $2,649,187.01. The trade was a 12.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 175,191 shares of company stock worth $16,110,903 over the last ninety days. Company insiders own 0.43% of the company's stock.

Institutional Trading of Colgate-Palmolive

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Wealth Advisors LLC lifted its stake in Colgate-Palmolive by 5.7% in the third quarter. Fifth Third Wealth Advisors LLC now owns 23,272 shares of the company's stock worth $1,986,000 after purchasing an additional 1,262 shares during the last quarter. Sterling Capital Management LLC raised its position in shares of Colgate-Palmolive by 31.4% in the 3rd quarter. Sterling Capital Management LLC now owns 51,773 shares of the company's stock worth $4,417,000 after acquiring an additional 12,365 shares in the last quarter. XXI Wealth LLC boosted its holdings in shares of Colgate-Palmolive by 18.0% in the 3rd quarter. XXI Wealth LLC now owns 3,660 shares of the company's stock valued at $312,000 after buying an additional 559 shares in the last quarter. MBL Wealth LLC lifted its holdings in shares of Colgate-Palmolive by 85.7% during the 3rd quarter. MBL Wealth LLC now owns 4,119 shares of the company's stock valued at $351,000 after purchasing an additional 1,901 shares during the last quarter. Finally, Compass Wealth Management LLC grew its stake in shares of Colgate-Palmolive by 21.8% during the third quarter. Compass Wealth Management LLC now owns 4,368 shares of the company's stock worth $373,000 after acquiring an additional 782 shares during the last quarter. Hedge funds and other institutional investors own 80.41% of the company's stock.

About Colgate-Palmolive

Colgate-Palmolive Company NYSE: CL is a global consumer products company focused on oral care, personal care, home care and pet nutrition. Its portfolio includes toothpaste, toothbrushes, mouthwash, liquid hand soap, body wash, deodorants, household cleaning products and pet food and treats.

The company markets well-known brands such as Colgate, Palmolive, elmex, meridol, Softsoap, Irish Spring, Ajax, Protex and Hill's Science Diet. Colgate-Palmolive also provides veterinary and nutritional products through Hill's Pet Nutrition, which serves pet owners and animal health professionals.

Founded in 1806 by William Colgate, the company developed from a soap and candle business into a diversified consumer goods manufacturer.

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