Colgate-Palmolive Company (NYSE:CL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “Colgate has underperformed the broader industry year to date. Though the company posted in-line earnings and topped sales estimates in third-quarter 2017, its margins remained strained primarily due to increased raw material and packaging costs, as well as higher advertising expenses. Further, it anticipates the aforementioned costs to persist and impact margins in 2017. Additionally, the company 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. This is also likely to put near-term pressure on the results. Moreover, the company forecasts the backdrop to remain challenging going forward, due to uncertain global markets and slowing category growth worldwide. However, the company’s progress on the Global Growth and Efficiency Program along with the additional savings anticipated from the recent expansion of the program, bode well.”
A number of other analysts have also weighed in on the stock. Morgan Stanley raised shares of Colgate-Palmolive from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $75.00 to $84.00 in a research report on Monday, September 25th. Jefferies Group LLC upped their target price on shares of Colgate-Palmolive from $76.00 to $77.00 and gave the stock a “hold” rating in a research note on Thursday, July 6th. BidaskClub downgraded shares of Colgate-Palmolive from a “sell” rating to a “strong sell” rating in a research note on Wednesday, July 12th. KeyCorp restated a “hold” rating on shares of Colgate-Palmolive in a research note on Monday, October 16th. Finally, Wells Fargo & Company restated a “market perform” rating on shares of Colgate-Palmolive in a research note on Monday, July 24th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $76.73.
Shares of Colgate-Palmolive (NYSE:CL) opened at 70.45 on Wednesday. The firm has a 50 day moving average price of $72.68 and a 200-day moving average price of $73.08. The company has a market cap of $62.06 billion, a price-to-earnings ratio of 26.18 and a beta of 0.81. Colgate-Palmolive has a 52-week low of $63.43 and a 52-week high of $77.27.
Colgate-Palmolive (NYSE:CL) last posted its quarterly earnings data on Friday, October 27th. The company reported $0.73 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.73. Colgate-Palmolive had a net margin of 15.10% and a return on equity of 2,782.56%. The company had revenue of $3.97 billion for the quarter, compared to analyst estimates of $3.94 billion. During the same period in the prior year, the company posted $0.73 EPS. The firm’s revenue for the quarter was up 2.8% on a year-over-year basis. Equities research analysts anticipate that Colgate-Palmolive will post $2.88 earnings per share for the current year.
In related news, CFO Dennis J. Hickey sold 73,872 shares of the firm’s stock in a transaction on Thursday, August 3rd. The shares were sold at an average price of $71.80, for a total transaction of $5,304,009.60. Following the sale, the chief financial officer now owns 484,985 shares in the company, valued at $34,821,923. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP John J. Huston sold 14,000 shares of the firm’s stock in a transaction on Thursday, August 10th. The shares were sold at an average price of $71.36, for a total transaction of $999,040.00. Following the sale, the senior vice president now owns 88,598 shares in the company, valued at approximately $6,322,353.28. The disclosure for this sale can be found here. In the last three months, insiders have sold 126,705 shares of company stock valued at $9,080,117. 1.02% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the stock. Old Mutual Global Investors UK Ltd. grew its position in Colgate-Palmolive by 91.6% during the third quarter. Old Mutual Global Investors UK Ltd. now owns 632,533 shares of the company’s stock valued at $46,080,000 after buying an additional 302,316 shares during the period. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. grew its position in Colgate-Palmolive by 3.1% during the third quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 157,971 shares of the company’s stock valued at $11,508,000 after buying an additional 4,707 shares during the period. First Merchants Corp grew its position in Colgate-Palmolive by 80.3% during the third quarter. First Merchants Corp now owns 43,567 shares of the company’s stock valued at $3,174,000 after buying an additional 19,400 shares during the period. Wedbush Securities Inc. grew its position in Colgate-Palmolive by 7.2% during the third quarter. Wedbush Securities Inc. now owns 22,572 shares of the company’s stock valued at $1,644,000 after buying an additional 1,510 shares during the period. Finally, Csenge Advisory Group acquired a new stake in Colgate-Palmolive during the third quarter valued at $390,000. Institutional investors own 73.45% of the company’s stock.
Colgate-Palmolive Company Profile
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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