Abacus FCF Increases Colgate-Palmolive Stake 11% to $17.8M as Q3 EPS Beats Estimates
Abacus FCF Advisors increased its Colgate-Palmolive stake by 11.0% to 223,175 shares valued at $17.84 million, making it the 12th largest holding. Colgate-Palmolive reported Q3 EPS of $0.91, beating the $0.89 consensus by $0.02, while analysts set an $88.81 target with ten Buy, five Hold and one Sell ratings.
1. Institutional Investors Increase CL Stake
In the third quarter, Abacus FCF Advisors LLC boosted its holdings in Colgate-Palmolive Company by 11.0%, acquiring an additional 22,105 shares to reach a total position of 223,175 shares. This stake represents approximately 2.4% of Abacus FCF’s portfolio and stands as its 12th largest holding, valued at $17.84 million per the latest SEC filing. Other institutional moves include Diversified Trust Co adding 10,892 shares (a 12.8% increase) to bring its total to 96,003 shares, and Mirova US LLC expanding its position by 50.9% with 9,614 new shares, totaling 28,494 shares. Collectively, hedge funds and institutional investors now hold more than 80% of CL’s outstanding shares.
2. Analyst Rating Revisions
Colgate-Palmolive has been subject to multiple recent research updates. JPMorgan Chase & Co. raised its rating to overweight while increasing its target from $87 to $88 on December 18. Morgan Stanley maintained an overweight stance but trimmed its target from $96 to $87 on November 3, and Barclays adjusted its view to equal weight, lowering its target from $82 to $80 on November 4. Deutsche Bank reiterated a positive outlook with an $86 target on October 10, and Bank of America retained its buy rating but reduced its price objective from $98 to $88 on October 8. Across ten buy ratings, five holds and one sell, the consensus stands at Moderate Buy with an average target of $88.81.
3. Recent Earnings Performance and Financial Metrics
In the quarter ended October 31, Colgate-Palmolive reported earnings per share of $0.91, beating consensus estimates by $0.02, on revenue of $5.13 billion compared to forecasts of $5.17 billion. Year-over-year revenue rose 1.9%. The company’s return on equity was an industry-leading 333.4%, with a net margin of 14.47%. As of the end of the quarter, CL carried a debt-to-equity ratio of 5.9, a current ratio of 0.93 and a quick ratio of 0.60. Analysts project full-year EPS of 3.75.
4. Quarterly Dividend Declared
Colgate-Palmolive’s board declared a quarterly cash dividend of $0.52 per share, payable February 13 to shareholders of record January 21. This payout equates to an annualized distribution of $2.08 per share and a yield of approximately 2.6%, with a dividend payout ratio of 58.3%.