Zacks Investment Research upgraded shares of Kimberly-Clark Corp. (NYSE:KMB) from a sell rating to a hold rating in a report released on Tuesday morning.
According to Zacks, “Estimates have been declining since Kimberly-Clark reported lower-than-expected results in the third quarter of 2016, after posting impressive results in the preceding quarter. Moreover, the stock is underperforming than the sector’s growth on a year-to-date basis. Though we believe the company’s higher cost savings and continued product innovation will drive growth in the long-term, the company lowered its 2016 guidance for earnings as it anticipates sluggish organic sales growth in the near term. Though the company has strong long-term growth prospects in developing and emerging markets, the current promotional environment is weakening the current market dynamics. Currency volatility, increased competition and higher marketing expenses are also expected to hurt profits over the near term.”
Several other equities analysts have also issued reports on KMB. B. Riley reaffirmed a neutral rating and issued a $128.00 price target on shares of Kimberly-Clark Corp. in a research report on Sunday, October 30th. Royal Bank Of Canada reduced their price objective on Kimberly-Clark Corp. from $125.00 to $118.00 and set a sector perform rating for the company in a report on Tuesday, October 25th. RBC Capital Markets set a $118.00 price objective on Kimberly-Clark Corp. and gave the stock a hold rating in a report on Tuesday, October 25th. downgraded Kimberly-Clark Corp. from an outperform rating to an underperform rating in a report on Wednesday, October 26th. Finally, Deutsche Bank AG reduced their price objective on Kimberly-Clark Corp. from $132.00 to $120.00 and set a hold rating for the company in a report on Tuesday, October 25th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company’s stock. Kimberly-Clark Corp. has a consensus rating of Hold and a consensus target price of $132.60.
Shares of Kimberly-Clark Corp. (NYSE:KMB) opened at 115.02 on Tuesday. Kimberly-Clark Corp. has a 12-month low of $111.30 and a 12-month high of $138.87. The stock has a market capitalization of $41.19 billion, a P/E ratio of 20.92 and a beta of 0.61. The firm’s 50-day moving average is $114.38 and its 200 day moving average is $124.32.
Kimberly-Clark Corp. (NYSE:KMB) last posted its quarterly earnings results on Monday, October 24th. The company reported $1.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.54 by $0.02. The company earned $4.60 billion during the quarter, compared to analysts’ expectations of $4.73 billion. Kimberly-Clark Corp. had a return on equity of 648.51% and a net margin of 10.96%. Kimberly-Clark Corp.’s revenue for the quarter was down 2.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.51 EPS. On average, equities research analysts forecast that Kimberly-Clark Corp. will post $6.00 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 4th. Investors of record on Friday, December 9th will be paid a dividend of $0.92 per share. The ex-dividend date is Wednesday, December 7th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 3.20%. Kimberly-Clark Corp.’s dividend payout ratio (DPR) is presently 67.03%.
In related news, Director Robert W. Decherd acquired 2,000 shares of the business’s stock in a transaction that occurred on Thursday, October 27th. The stock was bought at an average cost of $113.59 per share, for a total transaction of $227,180.00. Following the purchase, the director now owns 41,944 shares in the company, valued at approximately $4,764,418.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Thomas J. Mielke sold 11,946 shares of the business’s stock in a transaction that occurred on Monday, November 21st. The shares were sold at an average price of $113.34, for a total value of $1,353,959.64. Following the transaction, the senior vice president now owns 30,091 shares of the company’s stock, valued at $3,410,513.94. The disclosure for this sale can be found here. Corporate insiders own 0.58% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Kimberly-Clark Corp. by 2.8% in the second quarter. Vanguard Group Inc. now owns 25,395,093 shares of the company’s stock worth $3,491,317,000 after buying an additional 695,252 shares during the period. BlackRock Institutional Trust Company N.A. boosted its position in Kimberly-Clark Corp. by 1.9% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 10,464,788 shares of the company’s stock worth $1,320,028,000 after buying an additional 191,972 shares in the last quarter. BlackRock Fund Advisors boosted its position in Kimberly-Clark Corp. by 2.9% in the third quarter. BlackRock Fund Advisors now owns 8,062,838 shares of the company’s stock worth $1,017,046,000 after buying an additional 224,479 shares in the last quarter. Janus Capital Management LLC boosted its position in Kimberly-Clark Corp. by 73.5% in the second quarter. Janus Capital Management LLC now owns 5,203,212 shares of the company’s stock worth $715,337,000 after buying an additional 2,204,022 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its position in Kimberly-Clark Corp. by 5.9% in the third quarter. Bank of New York Mellon Corp now owns 4,127,634 shares of the company’s stock worth $520,661,000 after buying an additional 230,574 shares in the last quarter. Institutional investors own 67.70% of the company’s stock.
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.