Shares of Kimberly-Clark Corporation (NASDAQ:KMB) reached a new 52-week low on Monday, trading as low as $98.73 before closing at $98.52. This decline follows a previous closing price of $101.40, with a trading volume of over 1.55 million shares. The drop in share price coincides with several recent downgrades from prominent analysts.
Analyst Revisions Impacting Share Price
Several research firms have recently adjusted their ratings and price targets for Kimberly-Clark. Morgan Stanley lowered its price target from $144.00 to $125.00, maintaining an “equal weight” rating. Likewise, TD Cowen reduced its target from $135.00 to $130.00 and issued a “hold” rating. In contrast, Royal Bank of Canada reiterated an “overweight” rating, setting a price objective of $162.00.
Notably, JPMorgan Chase & Co. updated its target price from $127.00 to $129.00 while giving the stock a “neutral” rating. Argus took a more optimistic stance by raising its rating from “hold” to “buy” with a target of $120.00. Currently, three analysts rate the stock as a buy, while eleven have a hold rating, and one recommends selling, leading to an average rating of “hold” and a consensus price target of $124.23, according to MarketBeat.com.
Quarterly Earnings and Dividend Announcements
On October 30, 2023, Kimberly-Clark reported its quarterly earnings, revealing an earnings per share (EPS) of $1.82, exceeding the consensus estimate of $1.45 by $0.37. The company generated $4.15 billion in revenue, slightly outperforming analyst expectations of $4.14 billion. Year-over-year, revenue increased by 0.1%, although EPS fell from $1.83 from the same quarter last year. Analysts project an average EPS of $7.50 for Kimberly-Clark in the current fiscal year.
In addition to the earnings report, Kimberly-Clark announced a quarterly dividend of $1.26 per share, scheduled for payment on January 5, 2024. Investors on record as of December 5, 2023 will be eligible for this dividend. The dividend represents an annualized amount of $5.04 and a yield of 5.1%, with a dividend payout ratio of 85.28%.
Investment Trends and Institutional Holdings
Recent activity among hedge funds reflects a growing interest in Kimberly-Clark. Several investment firms have adjusted their positions, with Investment Research & Advisory Group Inc. purchasing a stake valued at approximately $25,000 in the second quarter. Cloud Capital Management LLC also acquired a new stake worth about $25,000 during the third quarter. Notably, Princeton Global Asset Management LLC increased its holdings by an impressive 989.5%, now owning 207 shares valued at about $27,000 after acquiring additional shares.
Overall, institutional investors and hedge funds hold approximately 76.29% of Kimberly-Clark’s shares, indicating strong institutional confidence in the company.
Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has evolved from its origins in paper production to become a leading global manufacturer of personal care and consumer tissue products. Its well-known brands, including Kleenex, Huggies, Kotex, Cottonelle, and Scott, serve a diverse range of retail, healthcare, and institutional customers.
As market conditions continue to change, investors and analysts alike will be watching Kimberly-Clark closely for signs of recovery and growth in the coming quarters.
