Colgate-Palmolive (NYSE:CL) Shares Gap Up on Strong Earnings

Key Points

• Colgate-Palmolive shares jumped after the company reported quarterly EPS of $0.97, exceeding the $0.93 consensus estimate, while revenue rose 4.6% year over year to $5.37 billion.
• The company declared a quarterly dividend of $0.53, equivalent to $2.12 annually and a 2.2% yield, with a payout ratio of 84.13%.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $98.56; however, insiders sold roughly $16.1 million in shares over the past three months.

Colgate-Palmolive Company (NYSE:CL - Get Free Report)'s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $93.16, but opened at $98.00. Colgate-Palmolive shares last traded at $95.1870, with a volume of 1,153,125 shares changing hands.

The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.04. The business had revenue of $5.37 billion for the quarter, compared to analyst estimates of $5.34 billion. Colgate-Palmolive had a net margin of 9.68% and a return on equity of 464.63%. The company's revenue was up 4.6% on a year-over-year basis. During the same period in the prior year, the firm posted $0.91 EPS.

Colgate-Palmolive Dividend Announcement

The company also recently disclosed 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 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Tuesday, October 20th. Colgate-Palmolive's dividend payout ratio (DPR) is 84.13%.

Analysts Set New Price Targets

Several analysts recently issued reports on CL shares. Raymond James Financial increased their price target on Colgate-Palmolive from $100.00 to $102.00 and gave the company an "outperform" rating in a report on Monday, August 3rd. Royal Bank Of Canada restated an "outperform" rating and issued a $104.00 target price on shares of Colgate-Palmolive in a research note on Tuesday, September 8th. BNP Paribas Exane decreased their price objective on shares of Colgate-Palmolive from $101.00 to $97.00 and set an "outperform" rating for the company in a report on Monday, September 28th. TD Cowen lifted their price target on shares of Colgate-Palmolive from $85.00 to $90.00 and gave the company a "hold" rating in a report on Monday, August 3rd. Finally, UBS Group set a $106.00 price target on Colgate-Palmolive in a report on Thursday, October 15th. Thirteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Colgate-Palmolive presently has an average rating of "Moderate Buy" and a consensus target price of $98.56.

Insider Buying and Selling

In other Colgate-Palmolive news, CEO Noel R. Wallace sold 161,021 shares of the firm's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $91.92, for a total value of $14,801,050.32. Following the sale, the chief executive officer directly owned 362,231 shares in the company, valued at $33,296,273.52. This trade represents a 30.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $93.37, for a total value of $389,352.90. Following the transaction, the director owned 28,373 shares in the company, valued at $2,649,187.01. This represents a 12.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 175,191 shares of company stock valued at $16,110,903. Company insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Virginia Estate & Retirement Planning Advisors Inc. lifted its holdings in Colgate-Palmolive by 1,409.1% during the 3rd quarter. Virginia Estate & Retirement Planning Advisors Inc. now owns 332 shares of the company's stock worth $28,000 after buying an additional 310 shares in the last quarter. Parvin Asset Management LLC bought a new position in shares of Colgate-Palmolive during the 2nd quarter valued at about $32,000. Park Place Capital Corp raised its stake in shares of Colgate-Palmolive by 55.5% in the 2nd quarter. Park Place Capital Corp now owns 356 shares of the company's stock valued at $33,000 after purchasing an additional 127 shares during the period. Cherry Tree Wealth Management LLC raised its holdings in shares of Colgate-Palmolive by 7,840.0% in the second quarter. Cherry Tree Wealth Management LLC now owns 397 shares of the company's stock valued at $36,000 after purchasing an additional 392 shares during the last quarter. Finally, Montgomery Financial Services LLC bought a new position in shares of Colgate-Palmolive in the 2nd quarter valued at about $36,000. 80.41% of the stock is owned by institutional investors and hedge funds.

Colgate-Palmolive Trading Up 2.4%

The business has a 50 day moving average price of $89.43 and a 200-day moving average price of $89.58. The company has a market cap of $76.08 billion, a P/E ratio of 37.88, a PEG ratio of 4.44 and a beta of 0.33. The company has a current ratio of 1.03, a quick ratio of 0.67 and a debt-to-equity ratio of 13.82.

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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