Colgate-Palmolive Company (NYSE: CL) stock jumped 0.61% on Friday to $75.36 against a previous-day closing price of $74.90. With 3.45 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.27 million shares. During the session, the Household & Personal Products company that operates in wider Consumer Defensive sector, reached to the highest price of $75.73 whereas the lowest price it dropped to was $74.71. The 52-week range on CL shows that it touched its highest point at $85.61 and its lowest point at $72.20 during that stretch. It currently has a 1-year price target of $81.89. With its current market cap of 62.48 billion, CL has annualized dividend of $1.88 while the current yield stands at 2.49%. Beta for the stock currently stands at 0.47.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CL was up-trending over the past week, with a rise of 0.17%, but this was down by -6.92% over a month. Three-month performance dropped to -4.46% while six-month performance rose 2.35%. The stock lost -1.40% in the past year, while it has lost -11.69% so far this year. A look at the trailing 12-month EPS for CL yields 2.31 with Next year EPS estimates of 3.31. For the next quarter, that number is 0.75. This implies an EPS growth rate of -18.60% for this year and 9.46% for next year. EPS is expected to grow by 3.93% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.20%.
Float and Shares Shorts:
At present, 836.80 million CL shares are outstanding with a float of 826.90 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.06 million, which was 1.20% higher than short shares on Jun 14, 2022. In addition to Mr. Noel R. Wallace as the firm’s Chairman, CEO & Pres, Mr. Stanley J. Sutula III serves as its Chief Financial Officer.
Through their ownership of 81.54% of CL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.47% of CL, in contrast to 39.18% held by mutual funds. Shares owned by individuals account for 2.86%. As the largest shareholder in CL with 8.86% of the stake, The Vanguard Group, Inc. holds 74,252,604 shares worth 74,252,604. A second-largest stockholder of CL, SSgA Funds Management, Inc., holds 49,317,162 shares, controlling over 5.89% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CL, holding 40,172,015 shares or 4.79% stake. With a 2.96% stake in CL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 24,784,723 shares are owned by the mutual fund manager. The Vanguard Dividend Growth Fund, which owns about 2.79% of CL stock, is the second-largest Mutual Fund holder. It holds 23,372,041 shares valued at 1.83 billion. Vanguard 500 Index Fund holds 2.23% of the stake in CL, owning 18,702,134 shares worth 1.46 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CL since 23 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 16 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CL analysts setting a high price target of $91.00 and a low target of $68.00, the average target price over the next 12 months is $82.50. Based on these targets, CL could surge 20.75% to reach the target high and fall by -9.77% to reach the target low. Reaching the average price target will result in a growth of 9.47% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CL will report FY 2022 earnings on 01/27/2023. Analysts have provided yearly estimates in a range of $3.07 being high and $2.97 being low. For CL, this leads to a yearly average estimate of $3.02. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Colgate-Palmolive Company surprised analysts by $0.01 when it reported $0.72 EPS against a consensus estimate of $0.71. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.77 and the low estimate is $0.68. The average estimate for the next quarter is thus $0.75.
Summary of Insider Activity:
Insiders traded CL stock several times over the past three months with 6 Buys and 4 Sells. In these transactions, 161,959 shares were bought while 159,444 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 885,197 while 788,667 shares were sold.