Kimberly-Clark (NASDAQ:KMB) Stock Bumped Down to “Strong Sell” by Zacks Research

Zacks Research downgraded shares of Kimberly-Clark (NASDAQ:KMB) from a hold rating to a strong sell rating in a research note published on Tuesday morning,Zacks reports.

A number of other analysts have also issued reports on KMB. Barclays boosted their price target on Kimberly-Clark from $101.00 to $115.00 and gave the company an “equal weight” rating in a report on Tuesday, July 21st. Freedom Capital upgraded Kimberly-Clark from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th. BNP Paribas Exane upped their price target on shares of Kimberly-Clark from $101.00 to $110.00 and gave the stock a “neutral” rating in a research report on Friday, October 16th. UBS Group increased their price objective on shares of Kimberly-Clark from $115.00 to $116.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Finally, Bank of America cut their price objective on shares of Kimberly-Clark from $122.00 to $120.00 and set a “buy” rating on the stock in a report on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $116.50.

Kimberly-Clark Stock Down 1.6%

NASDAQ KMB opened at $106.64 on Tuesday. The stock has a 50 day moving average price of $102.67 and a 200-day moving average price of $102.87. Kimberly-Clark has a one year low of $92.42 and a one year high of $123.09. The company has a debt-to-equity ratio of 3.45, a quick ratio of 0.69 and a current ratio of 0.91. The company has a market capitalization of $35.47 billion, a P/E ratio of 18.14, a P/E/G ratio of 5.86 and a beta of 0.25.

Kimberly-Clark (NASDAQ:KMB) last released its quarterly earnings results on Tuesday, August 4th. The company reported $1.80 EPS for the quarter, missing the consensus estimate of $2.01 by ($0.21). The company had revenue of $4.19 billion during the quarter, compared to analysts’ expectations of $4.22 billion. Kimberly-Clark had a return on equity of 143.92% and a net margin of 11.79%. The company’s revenue was up .6% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.92 EPS. As a group, equities analysts predict that Kimberly-Clark will post 6.83 EPS for the current fiscal year.

Kimberly-Clark Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Friday, September 4th were issued a $1.28 dividend. This represents a $5.12 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date was Friday, September 4th. Kimberly-Clark’s dividend payout ratio (DPR) is currently 87.07%.

Hedge Funds Weigh In On Kimberly-Clark

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Kimberly-Clark in the 2nd quarter worth $3,547,915,000. Bank of America Corp DE increased its position in Kimberly-Clark by 3.3% during the 2nd quarter. Bank of America Corp DE now owns 6,881,641 shares of the company’s stock valued at $755,398,000 after buying an additional 219,742 shares in the last quarter. Thornburg Investment Management Inc. purchased a new stake in Kimberly-Clark in the second quarter valued at about $632,373,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Kimberly-Clark by 8.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,116,768 shares of the company’s stock worth $342,128,000 after purchasing an additional 249,832 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Kimberly-Clark during the 2nd quarter valued at approximately $239,612,000. 76.29% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Kimberly-Clark

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: China antitrust approval removes a major regulatory hurdle for Kimberly-Clark’s proposed Kenvue acquisition, improving the deal’s closing prospects and potentially expanding the company’s consumer-health portfolio. Kimberly-Clark’s $40B purchase of Kenvue wins China antitrust approval
• Positive Sentiment: Bank of America maintained a Buy rating and a $120 price target, citing strong execution and earnings momentum. That view provides a bullish counterpoint to concerns surrounding the acquisition and financing. Kimberly-Clark maintained at Buy with $120 price target
• Positive Sentiment: Kimberly-Clark de México reported margin gains and a strong cash position in the third quarter, suggesting improving operating performance in an important regional business. Kimberly-Clark de México third-quarter results
• Neutral Sentiment: Commentary comparing Kimberly-Clark with Clorox highlights that both companies offer yields above 4.5% but are undergoing overhauls, making execution and balance-sheet strength more important than headline yield alone. Kimberly-Clark vs. Clorox dividend comparison
• Negative Sentiment: Kimberly-Clark priced $4.9 billion of senior unsecured notes to help fund the Kenvue transaction. The financing increases leverage and interest obligations, intensifying investor concerns about balance-sheet risk and future dividend flexibility. Kimberly-Clark prices $4.9 billion notes for Kenvue deal
• Negative Sentiment: Recent analysis questions whether Kimberly-Clark’s long dividend record is adequately supported by free cash flow, particularly as payout ratios leave little cushion and the company takes on acquisition debt. Jim Cramer calls Kimberly-Clark a hated Dividend King

About Kimberly-Clark

Kimberly-Clark Corporation (NASDAQ:KMB) is a global consumer products company that develops and markets personal care, tissue and professional hygiene products. Its portfolio includes products for babies and children, feminine care, adult care, family care and workplace hygiene.

The company’s well-known brands include Huggies diapers and wipes, Kleenex facial tissue, Cottonelle bathroom tissue, Scott toilet paper and paper towels, Kotex feminine care products, and Depend, Poise and GoodNites products.