Zacks Investment Research upgraded shares of Colgate-Palmolive (NYSE:CL) from a hold rating to a buy rating in a research note published on Tuesday morning. The firm currently has $83.00 price objective on the stock.
According to Zacks, “Colgate has outperformed the industry in the past month. The company is encouraged by the progress on the Global Growth and Efficiency Program along with additional savings anticipated from the recent expansion of the program. Moreover, the company has been infamous among investors with its meet or beat earnings track record. Though it posted in-line earnings and topped sales estimates in third-quarter 2017, margins remained strained due to increased raw material and packaging costs, as well as higher advertising expenses. Further, it anticipates these costs to persist and impact margins in 2017. The company also perked up its costs guidance related to charges arising from the expansion and extension of the Global Growth and Efficiency Program through Dec 31, 2019. Nonetheless, Colgate’s shareholder-friendly moves remain noteworthy. Estimates have been stable lately ahead of the fourth quarter earnings release.”
Several other brokerages have also weighed in on CL. Morgan Stanley cut their price objective on shares of Colgate-Palmolive from $84.00 to $83.00 and set an overweight rating on the stock in a report on Tuesday, October 31st. Jefferies Group reiterated a hold rating and set a $79.00 price objective on shares of Colgate-Palmolive in a report on Thursday, September 28th. KeyCorp reiterated a hold rating on shares of Colgate-Palmolive in a report on Monday, October 16th. Deutsche Bank started coverage on shares of Colgate-Palmolive in a report on Wednesday, December 13th. They set a hold rating and a $75.00 price objective on the stock. Finally, Macquarie upgraded shares of Colgate-Palmolive from a neutral rating to an outperform rating and set a $81.00 price objective on the stock in a report on Tuesday, December 19th. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating and six have assigned a buy rating to the stock. Colgate-Palmolive has a consensus rating of Hold and an average target price of $76.45.
Colgate-Palmolive (NYSE:CL) last announced its quarterly earnings data on Friday, October 27th. The company reported $0.73 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.73. The business had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.94 billion. Colgate-Palmolive had a net margin of 15.10% and a return on equity of 2,782.56%. The company’s revenue was up 2.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.73 EPS. equities analysts expect that Colgate-Palmolive will post 2.87 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 15th. Investors of record on Tuesday, January 23rd will be issued a $0.40 dividend. The ex-dividend date is Monday, January 22nd. This represents a $1.60 annualized dividend and a yield of 2.09%. Colgate-Palmolive’s payout ratio is 61.78%.
In other news, Director Stephen I. Sadove sold 20,780 shares of Colgate-Palmolive stock in a transaction that occurred on Monday, November 6th. The shares were sold at an average price of $70.52, for a total transaction of $1,465,405.60. Following the sale, the director now owns 36,268 shares in the company, valued at $2,557,619.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jennifer Daniels sold 902 shares of Colgate-Palmolive stock in a transaction that occurred on Tuesday, January 9th. The shares were sold at an average price of $75.82, for a total transaction of $68,389.64. Following the sale, the insider now owns 37,788 shares in the company, valued at approximately $2,865,086.16. The disclosure for this sale can be found here. Insiders sold 181,950 shares of company stock worth $13,237,385 in the last 90 days. 1.02% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in shares of Colgate-Palmolive by 2.4% during the second quarter. Vanguard Group Inc. now owns 67,875,384 shares of the company’s stock valued at $5,031,602,000 after purchasing an additional 1,621,392 shares during the period. Renaissance Technologies LLC grew its position in shares of Colgate-Palmolive by 42.4% during the second quarter. Renaissance Technologies LLC now owns 9,753,400 shares of the company’s stock worth $723,020,000 after buying an additional 2,903,800 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Colgate-Palmolive by 25.3% during the second quarter. Arrowstreet Capital Limited Partnership now owns 6,854,323 shares of the company’s stock worth $508,111,000 after buying an additional 1,385,946 shares in the last quarter. First Eagle Investment Management LLC grew its position in shares of Colgate-Palmolive by 35.8% during the third quarter. First Eagle Investment Management LLC now owns 6,641,548 shares of the company’s stock worth $483,837,000 after buying an additional 1,750,417 shares in the last quarter. Finally, Harding Loevner LP grew its position in shares of Colgate-Palmolive by 92.0% during the third quarter. Harding Loevner LP now owns 4,742,752 shares of the company’s stock worth $176,329,000 after buying an additional 2,272,675 shares in the last quarter. Institutional investors own 72.86% of the company’s stock.
Colgate-Palmolive Company (Colgate) is a consumer products company. The Company operates in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care product segment is operated through five geographic segments, which include North America, Latin America, Europe, Asia Pacific and Africa/Eurasia.
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