Is Colgate-Palmolive Company (CL) Stock Cheap Or Risky?


As of Wednesday close, Colgate-Palmolive Company’s (NYSE:CL) stock was up $0.56, moving up 0.73 percent to $76.93. The average number of shares traded per day over the past five days has been 4,211,600 shares. 4 times new highs have been achieved over the past 5 days, with a $0.92 gain in that time frame. In the last twenty days, the average volume was 3,969,365, while in the previous 50 days, it was 4,297,634.

Since last month, CL stock rose 5.73%. Shares of the company fell to $71.22 on 10/24/22, the lowest level in the past month. A 52-week high of $85.61 was reached on 01/06/22 after having rallying from a 52-week low of $67.84. Since the beginning of this year, CL’s stock price has dropped by -9.85% or -$8.41, and marked a new high 4 times. However, the stock has declined by -10.14% since its 52-week high.

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CL stock investors should be aware that Colgate-Palmolive Company (CL) stock had its last reported insider trading activity 73 days ago on Sep 13. Massey Sally, the Chief Human Resources Officer of the company, disposed of 656 shares for $77.58 on Sep 13. It resulted in a $50,890 divestment by the insider. Parameswaran Prabha sold 48,778 shares at an average price of $78.80 on Aug 29. The insider now owns 6,787 shares following the transaction. On Aug 04, CLO and Secretary Daniels Jennifer sold 24,703 shares at $81.25 apiece. The transaction was valued at $2,007,176.

Valuation Metrics

Right now, Colgate-Palmolive Company (CL) has a P/E ratio of about 33.55. The stock’s beta is 0.51. Besides these, the trailing price-to-sales (P/S) ratio of 3.57, the price-to-book (PB) ratio of 103.96, and the price-to-cash flow ratio of 102.21 may also be considered.

The latest dividend of $0.47 per share was paid out, remained unchanged from last year’s $0.47. On Thursday March 10 2022, a $0.02 dividend increase was announced.

Financial Health

In the three months ended June 29, Colgate-Palmolive Company’s quick ratio stood at 0.70, while its current ratio was 1.20, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 13.21, and the total debt-to-equity ratio was 13.26. On the profitability front, the trailing twelve-month gross margin is 57.70% percent. In the year ended June 29, operating margins totaled 17.20%. Based on annual data, CL earned $10.38 billion in gross profit and brought in $17.42 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 32.90%. Return on equity (ROE) for the past 12 months was 448.40%.

In Colgate-Palmolive Company’s quarter-end financial report for June 29, it reported total debt of $8.22 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CL’s revenue rose 0.92% to $4.48 billion during the quarter, while net income inched up to $4.46 billion. While analysts expected Colgate-Palmolive Company to report $0.71 quarterly earnings, the actual figure was $0.72 per share, beating the consensus estimate by 1.40%. During the quarter, the company generated $1.08 billion in EBITDA. The liabilities of Colgate-Palmolive Company were 15.23 billion at the end of its most recent quarter ended June 29, and its total debt was $7.99 billion. The value of shareholders’ equity is $835.21 million.

Technical Picture

This quick technical analysis looks at Colgate-Palmolive Company’s (CL) price momentum. With a historical volatility rate of 12.83%, the RSI 9-day stood at 67.95% on 23 November.

With respect to its five-day moving average, the current Colgate-Palmolive Company price is up by +1.21% percent or $0.92. At present, CL shares trade +4.77% above its 20-day simple moving average and -5.02% percent below its 100-day simple moving average. However, the stock is currently trading approximately +1.14% above its SMA50 and -4.93% below its SMA200.

Stochastic coefficient K was 88.23% and Stochastic coefficient D was 88.15%, while ATR was 1.24. Given the Stochastic reading of 90.94% for the 14-day period, the RSI (14) reading has been calculated as 63.68%. As of today, the MACD Oscillator reading stands at 0.91, while the 14-day reading stands at 1.64.

Analyst Ratings

Wolfe Research launched its rating on Colgate-Palmolive Company (NYSE: CL) to a Peer perform in a note to investors on November 22, 2022. Colgate-Palmolive Company (CL) has been rated Overweight by analysts. According to 0 brokerage firms, CL is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Colgate-Palmolive Company stock as buy, with 8 recommending it as overweight.

With a median target price of $81.00, the current consensus forecast for the stock is $66.00 – $85.00. Based on these forecasts, analysts predict Colgate-Palmolive Company (CL) will achieve an average price target of $80.28.


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