Kimberly-Clark Corp. (KMB) Downgraded to “Sell” at Zacks Investment Research
According to Zacks, “Estimates have been stable after Kimberly-Clark' second quarter earnings release. Kimberly-Clark posted better-than-expected results in the second quarter of 2016, wherein both earnings and revenues beat the Zacks Consensus Estimate. Overall, the company is improving its business in developing and emerging markets on the back of its personal care business and expects the trend to continue in the near term. Further, Kimberly-Clark expects higher cost savings and continued product innovation to drive growth. However, the company has recently shut down its operations in Venezuela due to economic crisis in the region; and is facing lawsuit related to the spin off of its health care business (now named as Halyard Health) in Oct 2014. These headwinds are expected to hurt investors confidence.”
Several other research analysts also recently issued reports on the company. Goldman Sachs Group Inc. reaffirmed a buy rating and set a $154.00 price target on shares of Kimberly-Clark Corp. in a research note on Monday, September 12th. B. Riley reiterated a neutral rating and set a $124.00 price objective on shares of Kimberly-Clark Corp. in a research report on Sunday, July 31st. Citigroup Inc. lifted their price objective on Kimberly-Clark Corp. from $135.00 to $139.00 and gave the stock a neutral rating in a research report on Wednesday, July 27th. Finally, Deutsche Bank AG reiterated a hold rating and set a $132.00 price objective (up previously from $130.00) on shares of Kimberly-Clark Corp. in a research report on Sunday, July 24th. One research analyst has rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $136.63.
Shares of Kimberly-Clark Corp. (NYSE:KMB) traded down 0.036% during mid-day trading on Tuesday, hitting $125.645. 271,342 shares of the stock traded hands. Kimberly-Clark Corp. has a one year low of $107.79 and a one year high of $138.87. The company has a market cap of $45.19 billion, a P/E ratio of 23.298 and a beta of 0.35. The stock has a 50 day moving average price of $126.65 and a 200-day moving average price of $130.63.
Kimberly-Clark Corp. (NYSE:KMB) last released its quarterly earnings results on Monday, July 25th. The company reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.05. The business earned $4.60 billion during the quarter, compared to the consensus estimate of $4.56 billion. Kimberly-Clark Corp. had a return on equity of 815.72% and a net margin of 10.70%. The business’s revenue was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.41 EPS. On average, analysts forecast that Kimberly-Clark Corp. will post $6.08 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 4th. Investors of record on Friday, September 9th will be given a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 2.93%. The ex-dividend date of this dividend is Wednesday, September 7th. Kimberly-Clark Corp.’s dividend payout ratio (DPR) is presently 68.40%.
In related news, SVP Lizanne C. Gottung sold 12,407 shares of the business’s stock in a transaction that occurred on Thursday, August 4th. The stock was sold at an average price of $129.93, for a total transaction of $1,612,041.51. Following the transaction, the senior vice president now directly owns 18,000 shares of the company’s stock, valued at approximately $2,338,740. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Thomas J. Mielke sold 11,946 shares of the business’s stock in a transaction that occurred on Monday, August 22nd. The stock was sold at an average price of $127.37, for a total value of $1,521,562.02. Following the transaction, the senior vice president now directly owns 33,557 shares in the company, valued at $4,274,155.09. The disclosure for this sale can be found here. Corporate insiders own 0.58% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. PGGM Investments raised its position in Kimberly-Clark Corp. by 6.4% in the first quarter. PGGM Investments now owns 311,412 shares of the company’s stock valued at $41,888,000 after buying an additional 18,605 shares during the period. Hartwell J M Limited Partnership raised its position in shares of Kimberly-Clark Corp. by 79.3% in the first quarter. Hartwell J M Limited Partnership now owns 24,423 shares of the company’s stock worth $3,285,000 after buying an additional 10,800 shares during the last quarter. Raymond James Trust N.A. raised its position in shares of Kimberly-Clark Corp. by 4.1% in the first quarter. Raymond James Trust N.A. now owns 46,170 shares of the company’s stock worth $6,209,000 after buying an additional 1,805 shares during the last quarter. Tompkins Financial Corp raised its position in shares of Kimberly-Clark Corp. by 0.8% in the first quarter. Tompkins Financial Corp now owns 23,222 shares of the company’s stock worth $3,123,000 after buying an additional 179 shares during the last quarter. Finally, Carroll Financial Associates Inc. raised its position in shares of Kimberly-Clark Corp. by 4.1% in the first quarter. Carroll Financial Associates Inc. now owns 3,770 shares of the company’s stock worth $507,000 after buying an additional 150 shares during the last quarter. 68.37% of the stock is currently owned by hedge funds and other institutional investors.
About Kimberly-Clark Corp.
Kimberly-Clark Corporation is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers. The Company operates through three segments: Personal Care, Consumer Tissue and K-C Professional. The Company’s Personal Care segment offers various solutions and products, such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products.
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