Zacks Investment Research Downgrades Colgate-Palmolive Company (CL) to Hold

Zacks Investment Research downgraded shares of Colgate-Palmolive Company (NYSE:CL) from a buy rating to a hold rating in a report issued on Tuesday, October 17th.

According to Zacks, “Colgate has outperformed the industry in the past month. We remain encouraged by the progress on its 2012 Restructuring Program and expect additional opportunities identified under the program to help reach the higher end of its previously stated cost and savings view. Moreover, the company has been infamous among investors with its meet or beat earnings track record. However, the company’s sales missed expectations for the fifth straight quarter in second-quarter due to continued softness in North America and challenges in Asia-Pacific. Further, the company lagged sales estimates in 16 out of the trailing 17 quarters. Nevertheless, the company remains focused on four fundamentals to boost profits including, increased spending on advertisements; innovation across portfolio; higher spends on e-commerce business and aggressively maximizing productivity. Also, its disciplined capital strategy bodes well. Estimates have been stable lately.”

Several other brokerages also recently commented on CL. BidaskClub downgraded Colgate-Palmolive from a hold rating to a sell rating in a research note on Saturday, June 24th. KeyCorp reiterated a hold rating on shares of Colgate-Palmolive in a research note on Monday, October 16th. Royal Bank Of Canada reiterated a hold rating and set a $74.00 target price on shares of Colgate-Palmolive in a research note on Friday, June 30th. Jefferies Group LLC boosted their price target on Colgate-Palmolive from $76.00 to $77.00 and gave the company a hold rating in a research note on Thursday, July 6th. Finally, Deutsche Bank AG restated a hold rating and issued a $75.00 price target on shares of Colgate-Palmolive in a research note on Monday, July 24th. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating and four have assigned a buy rating to the company’s stock. Colgate-Palmolive has an average rating of Hold and a consensus target price of $76.79.

Colgate-Palmolive (CL) traded down 1.87% during trading on Tuesday, reaching $69.88. 5,278,865 shares of the company’s stock traded hands. The company has a 50-day moving average of $72.84 and a 200 day moving average of $73.18. Colgate-Palmolive has a 12 month low of $63.43 and a 12 month high of $77.27. The stock has a market capitalization of $61.55 billion, a P/E ratio of 25.97 and a beta of 0.81.

Colgate-Palmolive (NYSE:CL) last posted its quarterly earnings results on Friday, October 27th. The company reported $0.73 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.73. Colgate-Palmolive had a return on equity of 3,121.95% and a net margin of 15.83%. The firm had revenue of $3.97 billion during the quarter, compared to the consensus estimate of $3.94 billion. During the same period last year, the company earned $0.73 earnings per share. The business’s revenue was up 2.8% compared to the same quarter last year. On average, equities research analysts expect that Colgate-Palmolive will post $2.90 earnings per share for the current fiscal year.

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The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 15th. Stockholders of record on Monday, October 23rd will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.25%. The ex-dividend date is Friday, October 20th. Colgate-Palmolive’s dividend payout ratio (DPR) is presently 59.48%.

In other Colgate-Palmolive news, insider Patricia Verduin sold 3,833 shares of the stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $71.45, for a total transaction of $273,867.85. Following the completion of the transaction, the insider now directly owns 53,173 shares of the company’s stock, valued at $3,799,210.85. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ellen M. Hancock sold 5,057 shares of the stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $71.91, for a total value of $363,648.87. Following the transaction, the director now directly owns 199,777 shares of the company’s stock, valued at $14,365,964.07. The disclosure for this sale can be found here. Over the last three months, insiders sold 131,762 shares of company stock valued at $9,443,766. Company insiders own 1.02% of the company’s stock.

Several institutional investors have recently bought and sold shares of CL. Waldron LP bought a new position in shares of Colgate-Palmolive in the first quarter worth $238,000. Jackson Grant Investment Advisers Inc. boosted its holdings in shares of Colgate-Palmolive by 0.5% in the first quarter. Jackson Grant Investment Advisers Inc. now owns 6,993 shares of the company’s stock worth $512,000 after acquiring an additional 37 shares during the period. WealthTrust Fairport LLC bought a new stake in Colgate-Palmolive during the first quarter valued at $624,000. Rhumbline Advisers boosted its stake in Colgate-Palmolive by 4.8% during the first quarter. Rhumbline Advisers now owns 1,666,544 shares of the company’s stock valued at $121,974,000 after buying an additional 76,498 shares during the period. Finally, Elkhorn Investments LLC bought a new stake in Colgate-Palmolive during the first quarter valued at $1,364,000. 73.02% of the stock is owned by hedge funds and other institutional investors.

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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Analyst Recommendations for Colgate-Palmolive (NYSE:CL)

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