Shares of Kimberly-Clark Corporation (NASDAQ:KMB) fell to a new 52-week low during trading on Monday, reaching a low of $98.73 before closing at $98.52. The stock experienced a trading volume of 1,557,372 shares, a significant drop from its previous close of $101.40. This decline comes as multiple analysts reassess their ratings and price targets for the company.
Analyst Ratings and Price Target Adjustments
Recent research reports have highlighted a shift in sentiment towards Kimberly-Clark. Morgan Stanley lowered its price target from $144.00 to $125.00, maintaining an “equal weight” rating. Similarly, TD Cowen adjusted its target from $135.00 to $130.00 and issued a “hold” rating. In contrast, Royal Bank of Canada reaffirmed its “overweight” rating while setting a price objective of $162.00.
Furthermore, JPMorgan Chase & Co. increased its target price from $127.00 to $129.00 while holding a “neutral” rating. Argus recently upgraded its rating from “hold” to “buy,” with a price target of $120.00. Currently, three analysts have issued a “buy” rating, eleven have assigned a “hold” rating, and one has given a “sell” rating, leading to an average rating of “hold” and a consensus price target of $124.23, according to MarketBeat.com.
Quarterly Earnings and Dividend Announcement
On October 30, 2023, Kimberly-Clark released its quarterly earnings report, revealing earnings per share (EPS) of $1.82, surpassing the consensus estimate of $1.45 by $0.37. The company reported a revenue of $4.15 billion, slightly exceeding expectations of $4.14 billion. The net margin stood at 10.89%, while the company achieved a remarkable return on equity of 183.11%. Year-over-year, the revenue increased by 0.1%, although the EPS declined slightly from $1.83 in the same quarter last year. Analysts project an EPS of $7.50 for the current year for Kimberly-Clark.
Additionally, the company announced a quarterly dividend of $1.26, to be paid on January 5, 2024, to investors on record as of December 5, 2023. The ex-dividend date is also set for December 5, 2023. This represents an annualized dividend of $5.04 and a dividend yield of 5.1%. Currently, Kimberly-Clark’s dividend payout ratio (DPR) is 85.28%.
Institutional Investor Activity
Recent activity among hedge funds indicates increasing interest in Kimberly-Clark shares. Investment Research & Advisory Group Inc. and Cloud Capital Management LLC each acquired new stakes valued at approximately $25,000 during the second and third quarters, respectively. Princeton Global Asset Management LLC significantly increased its position in the company by 989.5%, now holding 207 shares valued at $27,000 after purchasing an additional 188 shares in the last quarter. Other firms, including Winnow Wealth LLC and Darwin Wealth Management LLC, have also made similar investments.
Institutional investors and hedge funds currently own 76.29% of Kimberly-Clark’s stock, indicating strong backing from significant investment entities.
Company Overview
Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has evolved into a leading global manufacturer of personal care and consumer tissue products. The company produces well-known brands including Kleenex, Huggies, Kotex, Cottonelle, and Scott. Additionally, its professional products cater to retail, healthcare, and institutional customers under the Kimberly-Clark Professional and KleenGuard labels.
As Kimberly-Clark navigates a challenging market environment, the adjustments in stock performance and analyst ratings reflect the broader economic conditions impacting consumer goods companies. Investors and analysts alike will be closely watching for future developments as the company continues to adapt to market dynamics.
