Barclays Lowers Colgate-Palmolive Price Target to $80 Amid Analyst Reviews

Colgate-Palmolive Company (NYSE:CL) has seen its price target reduced from $82.00 to $80.00 by analysts at Barclays, as noted in a research note released to investors on October 14, 2023. The brokerage firm maintains an equal weight rating on the stock, reflecting a cautious perspective on the company’s near-term performance.

Several other investment firms have also adjusted their expectations regarding Colgate-Palmolive. UBS Group lowered its price target from $92.00 to $90.00 while retaining a “buy” rating. Similarly, Deutsche Bank Aktiengesellschaft set a target of $86.00 in a report dated October 10, 2023. On October 20, 2023, Raymond James Financial revised its price objective from $105.00 to $95.00, assigning an “outperform” rating to the company. Evercore ISI also decreased its price objective, from $100.00 to $94.00, while reaffirming an “outperform” rating.

Currently, the consensus among nine equity research analysts is that Colgate-Palmolive holds a “Moderate Buy” rating. There are nine analysts recommending a buy, five issuing a hold rating, and one analyst providing a sell rating. According to MarketBeat.com, the average price target across these ratings is $89.87.

Stock Performance and Financial Highlights

Colgate-Palmolive shares opened at $76.53 on the day following the Barclays announcement. The company has a quick ratio of 0.57, a current ratio of 0.89, and a debt-to-equity ratio of 6.79. Over the last fifty days, the stock’s moving average price is $80.11, while the two-hundred day moving average stands at $86.00. The company’s market capitalization is approximately $61.86 billion, with a price-to-earnings (P/E) ratio of 21.50 and a price-to-earnings-growth (PEG) ratio of 4.44. Over the past year, the stock has fluctuated between a low of $74.54 and a high of $100.18.

The company recently reported its earnings results on October 31, 2023, revealing earnings per share (EPS) of $0.91 for the quarter, surpassing the consensus estimate of $0.89 by $0.02. Colgate-Palmolive’s revenue for the quarter was $5.13 billion, slightly below the consensus estimate of $5.17 billion. The revenue reflects a year-over-year increase of 1.9%, maintaining the same EPS level as the previous year.

Dividend Announcement and Institutional Activity

In addition to its financial performance, Colgate-Palmolive announced a quarterly dividend of $0.52, scheduled for payment on November 14, 2023. Shareholders recorded as of October 17, 2023 will be eligible for this dividend, which translates to an annualized figure of $2.08 and a yield of 2.7%. The company’s current dividend payout ratio stands at 58.26%.

Recent activity among institutional investors indicates a dynamic interest in Colgate-Palmolive. Personal CFO Solutions LLC acquired a new position valued at $285,000 during the first quarter. Vision Capital Management Inc. and Financial Gravity Asset Management Inc. also made new investments valued at approximately $322,000 and $2.17 million, respectively. Cidel Asset Management Inc. increased its holdings by 13.6%, now owning 329,060 shares valued at around $29.91 million. Notably, Penserra Capital Management LLC boosted its position by 398.6% during the same period.

Institutional investors and hedge funds collectively own 80.41% of Colgate-Palmolive’s stock, indicating strong institutional confidence in the company’s prospects. Colgate-Palmolive continues to operate as a major player in the consumer goods sector, with its products spanning oral, personal, and home care, as well as pet nutrition segments.