Shares of Kimberly-Clark Corporation (NASDAQ: KMB) reached a new 52-week low during trading on Monday, falling to $98.73 before closing at $98.52. This decline follows a previous close of $101.40 and occurred amid a trading volume of 1,557,372 shares.
Analyst Ratings Impact Stock Performance
Analysts have recently adjusted their ratings for Kimberly-Clark, contributing to the stock’s downward trend. Morgan Stanley reduced its price target from $144.00 to $125.00 while maintaining an “equal weight” rating. Similarly, TD Cowen lowered its target from $135.00 to $130.00, assigning a “hold” rating. In contrast, Royal Bank Of Canada reiterated an “overweight” rating with a price target of $162.00.
Other analysts are mixed in their outlook. JPMorgan Chase & Co. increased its target from $127.00 to $129.00, maintaining a “neutral” rating, while Argus upgraded its position from “hold” to “buy” with a target of $120.00. Currently, three analysts have rated the stock as a Buy, eleven have provided Hold ratings, and one has issued a Sell rating. According to MarketBeat.com, Kimberly-Clark holds an average rating of “Hold” with a consensus price target of $124.23.
Recent Earnings and Dividend Announcement
The company’s stock performance follows its latest quarterly earnings report released on October 30, 2023. Kimberly-Clark reported earnings per share (EPS) of $1.82, surpassing the consensus estimate of $1.45 by $0.37. The company generated revenue of $4.15 billion, slightly above the expected $4.14 billion. Year-over-year, revenue increased by 0.1%, while the return on equity was an impressive 183.11%.
In addition to its earnings performance, Kimberly-Clark announced a quarterly dividend of $1.26, scheduled for payment on January 5, 2024. Shareholders on record as of December 5, 2023, are eligible for this dividend. The annualized dividend totals $5.04, representing a yield of 5.1%. The company’s current dividend payout ratio stands at 85.28%.
Investment Trends Among Hedge Funds
Recent activity among hedge funds indicates a shifting interest in Kimberly-Clark shares. Several investment firms have altered their positions, with Investment Research & Advisory Group Inc. and Cloud Capital Management LLC each acquiring new stakes valued at approximately $25,000. Princeton Global Asset Management LLC significantly increased its holdings by 989.5% during the second quarter, now owning 207 shares valued at $27,000.
Overall, institutional investors and hedge funds currently hold 76.29% of Kimberly-Clark’s stock, reflecting a strong institutional interest in the company.
Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has evolved from its origins in paper manufacturing to become a leading global supplier of personal care and consumer tissue products. The company is well-known for iconic brands such as Kleenex, Huggies, and Scott, serving both retail and professional markets worldwide.
As Kimberly-Clark navigates these challenges, investors and analysts will be watching closely to see how the company responds in the coming quarters.
