Colgate-Palmolive Company

(New York Stock Exchange)
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Bullish +52

Colgate-Palmolive Company (NYSE:CL) Given Consensus Recommendation of "Moderate Buy" by Brokerages - marketbeat.com

AI-generated analysis

πŸ“ˆ Colgate-Palmolive reported quarterly EPS of $0.99, beating the consensus estimate of $0.95.

πŸ’° Revenue grew 4.9% year-over-year to reach $5.36 billion in the latest quarter.

🏦 The stock holds a consensus 'Moderate Buy' rating from nineteen brokerages covering the company.

🎯 Analysts have set an average 12-month price target of $99, implying upside from the current trading level.

πŸ’΅ The company pays a quarterly dividend of $0.53, resulting in a 2.4% annualized yield for shareholders.

⚠️ The dividend payout ratio is relatively high at 84.13%, indicating a significant portion of earnings is distributed.

πŸ“‰ Piper Sandler lifted its price target to $96 and upgraded the rating to 'overweight' in July.

πŸ“‰ Deutsche Bank restated a 'buy' rating with a $101 price target in early August.

πŸ“‰ JPMorgan Chase lowered its price target from $104 to $103 while maintaining an 'overweight' rating.

πŸ“‰ TD Cowen raised its price target to $90 but kept the rating as 'hold' in August.

πŸ“‰ Insider selling occurred recently, with COO Panagiotis Tsourapas and Director John T. Cahill reducing their stakes.

πŸ›οΈ Institutional ownership remains strong at 80.41%, with significant holdings from California State Teachers Retirement System.

Bullish Signals
  • Colgate-Palmolive reported quarterly earnings of $0.99 per share, surpassing the consensus estimate of $0.95.
  • Revenue increased by 4.9% year-over-year to reach $5.36 billion in the most recent quarter.
  • The stock carries a consensus 'Moderate Buy' recommendation from nineteen brokerages covering the company.
  • Analysts have established an average 12-month price target of $99, suggesting potential upside from current levels.
  • Piper Sandler recently lifted its price target to $96 and assigned an 'overweight' rating to the stock.
  • Deutsche Bank restated a 'buy' rating with a $101 price target in early August.
  • The company maintains a quarterly dividend of $0.53, providing a 2.4% annualized yield to shareholders.
  • Institutional ownership is robust at 80.41%, indicating strong confidence from major investors like California State Teachers Retirement System.
Risk Factors
  • The dividend payout ratio is high at 84.13%, which may limit flexibility for future dividends or buybacks.
  • Recent insider selling activity saw COO Panagiotis Tsourapas and Director John T. Cahill reduce their shareholdings significantly.
  • JPMorgan Chase lowered its price target from $104 to $103, reflecting a slight reduction in near-term valuation expectations.
  • The stock trades at a PE ratio of 35.67, which is elevated compared to historical averages for consumer staples.
Full Analysis
Colgate-Palmolive (NYSE:CL) recently reported quarterly earnings that exceeded analyst expectations, with EPS of $0.99 beating the consensus estimate of $0.95. Revenue reached $5.36 billion, representing a 4.9% year-over-year increase. The company maintains a consensus recommendation of 'Moderate Buy' from nineteen brokerages, with twelve issuing buy ratings and seven holding steady. Wall Street analysts have set an average 12-month price target of $99, compared to the stock's opening price of $89.89. Recent analyst actions include Piper Sandler lifting its target price to $96 with an 'overweight' rating, Deutsche Bank restating a 'buy' with a $101 target, and TD Cowen raising its target to $90. Conversely, JPMorgan Chase slightly lowered its target from $104 to $103 while maintaining an 'overweight' stance. The company offers a quarterly dividend of $0.53 per share, equating to a 2.4% annualized yield, though the payout ratio is noted as high at 84.13%. Financial metrics show a market capitalization of $71.66 billion, a PE ratio of 35.67, and a return on equity of 464.63%. However, insider selling activity was observed in late August, with COO Panagiotis Tsourapas and Director John T. Cahill reducing their shareholdings.