Investors Buy Shares of Colgate-Palmolive (CL) on Weakness

Traders bought shares of Colgate-Palmolive (NYSE:CL) on weakness during trading hours on Friday. $68.01 million flowed into the stock on the tick-up and $23.46 million flowed out of the stock on the tick-down, for a money net flow of $44.55 million into the stock. Of all companies tracked, Colgate-Palmolive had the 23rd highest net in-flow for the day. Colgate-Palmolive traded down ($0.50) for the day and closed at $65.43

A number of brokerages recently weighed in on CL. Barclays set a $64.00 price objective on Colgate-Palmolive and gave the stock a “hold” rating in a report on Monday, July 30th. Zacks Investment Research lowered Colgate-Palmolive from a “hold” rating to a “sell” rating in a report on Monday, July 2nd. UBS Group raised Colgate-Palmolive from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $70.00 to $75.00 in a report on Wednesday, July 18th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $72.00 price objective on shares of Colgate-Palmolive in a report on Thursday, May 24th. Finally, Macquarie lowered Colgate-Palmolive from an “outperform” rating to a “neutral” rating and dropped their price objective for the stock from $74.00 to $65.00 in a report on Monday, July 30th. Three research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have issued a buy rating to the company’s stock. Colgate-Palmolive presently has an average rating of “Hold” and a consensus price target of $72.14.

The company has a quick ratio of 0.74, a current ratio of 1.06 and a debt-to-equity ratio of -34.49. The stock has a market cap of $57.21 billion, a PE ratio of 22.80, a price-to-earnings-growth ratio of 2.95 and a beta of 0.75.

Colgate-Palmolive (NYSE:CL) last issued its quarterly earnings data on Friday, July 27th. The company reported $0.77 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.77. Colgate-Palmolive had a return on equity of 2,494.79% and a net margin of 13.97%. The business had revenue of $3.89 billion for the quarter, compared to the consensus estimate of $3.91 billion. During the same period in the prior year, the business earned $0.72 earnings per share. The business’s revenue was up 1.6% on a year-over-year basis. analysts forecast that Colgate-Palmolive will post 3.02 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 15th. Stockholders of record on Wednesday, July 18th will be given a $0.42 dividend. The ex-dividend date is Tuesday, July 17th. This represents a $1.68 annualized dividend and a dividend yield of 2.57%. Colgate-Palmolive’s dividend payout ratio is currently 58.54%.

Colgate-Palmolive announced that its Board of Directors has initiated a stock buyback plan on Monday, June 18th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

In related news, insider Daniel B. Marsili sold 19,500 shares of the company’s stock in a transaction on Tuesday, May 15th. The stock was sold at an average price of $61.69, for a total value of $1,202,955.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Vice Chairman Franck J. Moison sold 80,000 shares of the company’s stock in a transaction on Tuesday, May 15th. The shares were sold at an average price of $61.75, for a total value of $4,940,000.00. The disclosure for this sale can be found here. Insiders sold 364,694 shares of company stock worth $23,628,346 over the last 90 days. Company insiders own 1.02% of the company’s stock.

A number of institutional investors have recently added to or reduced their stakes in CL. Envestnet Asset Management Inc. grew its stake in shares of Colgate-Palmolive by 780.9% in the second quarter. Envestnet Asset Management Inc. now owns 277,419 shares of the company’s stock valued at $17,980,000 after buying an additional 245,925 shares in the last quarter. Commerzbank Aktiengesellschaft FI grew its stake in shares of Colgate-Palmolive by 24.8% in the second quarter. Commerzbank Aktiengesellschaft FI now owns 251,102 shares of the company’s stock valued at $16,274,000 after buying an additional 49,871 shares in the last quarter. Cox Capital Co LLC acquired a new stake in shares of Colgate-Palmolive in the second quarter valued at about $556,000. Riverhead Capital Management LLC grew its stake in shares of Colgate-Palmolive by 71.5% in the second quarter. Riverhead Capital Management LLC now owns 28,183 shares of the company’s stock valued at $1,826,000 after buying an additional 11,754 shares in the last quarter. Finally, Braun Bostich & Associates Inc. grew its stake in shares of Colgate-Palmolive by 3,690.0% in the second quarter. Braun Bostich & Associates Inc. now owns 8,300 shares of the company’s stock valued at $538,000 after buying an additional 8,081 shares in the last quarter. Hedge funds and other institutional investors own 73.86% of the company’s stock.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. It operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The company offers oral care products, including toothpastes, toothbrushes, and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; personal care products comprising bar and liquid hand soaps, shower gels, shampoos, conditioners, and deodorants and antiperspirants; and home care products, such as laundry and dishwashing detergents, fabric conditioners, household cleaners, and other related products.

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