Colgate-Palmolive (NYSE:CL) Cut to Sell at Zacks Investment Research

Colgate-Palmolive (NYSE:CLGet Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday, Zacks.com reports. They currently have a $82.00 price objective on the stock. Zacks Investment Research‘s price target suggests a potential upside of 9.16% from the stock’s previous close.

According to Zacks, “Shares of Colgate have lagged the industry in the past three months, thanks to the impacts of higher raw material and logistics costs worldwide. It reported earnings per share decline in first-quarter 2022, despite sales growth. Each of the company’s segments incurred significantly higher raw and packaging material costs in the first quarter. Also, it incurred higher logistics costs owing to volume and capacity constraints in the shipping and logistics industry, higher e-commerce demand, and the impact of the Ukraine war. This impacted the company’s gross and operating margins. Moreover, the company’s EPS guidance for 2022 failed to impress. However, the company reported top line growth backed by increased pricing across all regions. The company’s sales also benefited from investments in innovation and digital capabilities.”

Several other analysts have also issued reports on CL. StockNews.com lowered Colgate-Palmolive from a “buy” rating to a “hold” rating in a report on Wednesday, April 13th. Morgan Stanley increased their price objective on Colgate-Palmolive from $90.00 to $91.00 and gave the stock an “equal weight” rating in a report on Monday, January 31st. TheStreet lowered Colgate-Palmolive from a “b-” rating to a “c+” rating in a report on Friday, March 25th. JPMorgan Chase & Co. cut their price objective on Colgate-Palmolive from $86.00 to $81.00 and set a “neutral” rating for the company in a report on Wednesday, March 30th. Finally, The Goldman Sachs Group cut their target price on Colgate-Palmolive from $104.00 to $95.00 in a report on Tuesday, March 29th. Two investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and three have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $86.20.

Shares of Colgate-Palmolive stock traded down $1.93 during midday trading on Monday, hitting $75.12. The company’s stock had a trading volume of 229,125 shares, compared to its average volume of 5,551,870. The firm has a market capitalization of $63.15 billion, a P/E ratio of 31.05, a PEG ratio of 3.79 and a beta of 0.62. The stock has a 50-day simple moving average of $77.40 and a 200-day simple moving average of $79.08. The company has a quick ratio of 0.67, a current ratio of 1.09 and a debt-to-equity ratio of 7.41. Colgate-Palmolive has a 1-year low of $72.20 and a 1-year high of $85.61.

Colgate-Palmolive (NYSE:CLGet Rating) last issued its earnings results on Friday, April 29th. The company reported $0.74 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.74. Colgate-Palmolive had a return on equity of 308.71% and a net margin of 12.43%. The business had revenue of $4.40 billion during the quarter, compared to analysts’ expectations of $4.40 billion. During the same quarter last year, the firm posted $0.80 earnings per share. Colgate-Palmolive’s revenue was up 1.3% compared to the same quarter last year. As a group, sell-side analysts predict that Colgate-Palmolive will post 3.25 earnings per share for the current year.

Colgate-Palmolive declared that its board has approved a share repurchase program on Thursday, March 10th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 8.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

In related news, insider Jennifer Daniels sold 40,580 shares of Colgate-Palmolive stock in a transaction dated Thursday, February 3rd. The stock was sold at an average price of $82.93, for a total transaction of $3,365,299.40. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John P. Bilbrey sold 4,917 shares of Colgate-Palmolive stock in a transaction dated Monday, February 14th. The stock was sold at an average price of $78.66, for a total value of $386,771.22. The disclosure for this sale can be found here. Insiders sold 127,080 shares of company stock worth $10,443,094 over the last quarter. 0.31% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CL. Bank of New Hampshire raised its position in Colgate-Palmolive by 0.5% in the 1st quarter. Bank of New Hampshire now owns 24,551 shares of the company’s stock worth $1,862,000 after purchasing an additional 123 shares during the last quarter. Avantax Planning Partners Inc. raised its position in Colgate-Palmolive by 1.3% in the 4th quarter. Avantax Planning Partners Inc. now owns 9,719 shares of the company’s stock worth $829,000 after purchasing an additional 129 shares during the last quarter. Meridian Wealth Management LLC raised its position in Colgate-Palmolive by 3.4% in the 4th quarter. Meridian Wealth Management LLC now owns 3,946 shares of the company’s stock worth $337,000 after purchasing an additional 131 shares during the last quarter. Somerset Trust Co raised its position in Colgate-Palmolive by 0.5% in the 4th quarter. Somerset Trust Co now owns 25,737 shares of the company’s stock worth $2,196,000 after purchasing an additional 132 shares during the last quarter. Finally, Mission Wealth Management LP raised its position in Colgate-Palmolive by 3.0% in the 4th quarter. Mission Wealth Management LP now owns 4,560 shares of the company’s stock worth $389,000 after purchasing an additional 134 shares during the last quarter. 78.12% of the stock is currently owned by institutional investors.

About Colgate-Palmolive (Get Rating)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items.

Featured Stories

Get a free copy of the Zacks research report on Colgate-Palmolive (CL)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Colgate-Palmolive (NYSE:CL)

Receive News & Ratings for Colgate-Palmolive Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Colgate-Palmolive and related companies with MarketBeat.com's FREE daily email newsletter.