Abacus FCF Boosts Colgate-Palmolive Stake by 11% to $17.84M; Analysts Revise Targets
Abacus FCF Advisors increased its Colgate-Palmolive stake 11.0%, buying 22,105 shares to reach 223,175 shares worth $17.84 million. Morgan Stanley cut its price target from $96 to $87, Barclays trimmed theirs from $82 to $80, and JPMorgan raised its target from $87 to $88.
1. Abacus FCF Advisors LLC Increases Stake
In the third quarter, Abacus FCF Advisors LLC boosted its position in Colgate-Palmolive by 11.0%, acquiring 22,105 additional shares to reach a total holding of 223,175 shares. This stake represents approximately 2.4% of the firm’s overall portfolio and ranks as its 12th largest position. According to the latest SEC filing, the value of this holding stood at $17.84 million at quarter end.
2. Institutional Investors Adjust Positions
Several other major investors shifted their Colgate-Palmolive allocations during the same period. Baron Wealth Management LLC added 414 shares, a 7.7% increase, bringing its total to 5,778 shares. Diversified Trust Co lifted its stake by 12.8%, adding 10,892 shares for a total of 96,003. Mirova US LLC grew by 50.9%, acquiring 9,614 additional shares to reach 28,494. Chemung Canal Trust Co. and Annex Advisory Services LLC also modestly increased their holdings by 1.1% and 2.4%, respectively. Overall, hedge funds and other institutions now account for just over 80% of the company’s outstanding shares.
3. Analyst Rating Updates
A series of research reports over the past quarter saw major brokerages fine-tune their assessments of Colgate-Palmolive. Deutsche Bank reaffirmed its stance with a positive outlook. Morgan Stanley maintained its overweight rating despite a more cautious stance on near-term growth. Barclays held an equal-weight view, while JPMorgan Chase upgraded its stance to overweight. Bank of America retained a buy recommendation. Among 16 analysts covering the stock, 10 carry a buy stance, five a hold, and one a sell, resulting in an overall consensus of moderate buy.
4. Earnings Performance and Dividend Policy
In its latest quarterly report, Colgate-Palmolive delivered earnings per share of $0.91, exceeding the consensus estimate of $0.89, and generated revenue of $5.13 billion, slightly below the $5.17 billion consensus but up 1.9% year-over-year. The company reported a net margin of 14.47% and an impressive return on equity of 333.39%. Management declared a quarterly dividend of $0.52 per share, payable in mid-February to shareholders of record in late January, representing an annualized yield of 2.6% and a payout ratio of 58.3%.