Colgate-Palmolive Bounces 0.62% on $370M Volume Rank 289 as Analysts Hold Overvaluation Concerns

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 7:51 pm ET1min read
CL--
Aime RobotAime Summary

- Colgate-Palmolive (CL) rose 0.62% on August 12, 2025, with $370M volume, ranking 289th in activity.

- Analysts maintain a “Hold” rating (avg. 2.45), citing a 7.47% EPS growth but a 25.74 P/E ratio above market and sector averages.

- Short interest at 1.5% of float and a 0.92% monthly increase signal mixed sentiment, while a 2.25% dividend yield with 63-year growth supports investor appeal.

- Institutional ownership at 80.41% reflects strong confidence, though a backtested high-volume strategy showed $2,300 gains from 2022–2025 despite a -15.7% maximum drawdown.

Colgate-Palmolive (CL) rose 0.62% on August 12, 2025, with a trading volume of $0.37 billion, ranking 289th in activity. Analysts maintain a “Hold” rating, averaging 2.45 based on 10 buys, 9 holds, and 1 sell. Earnings are projected to grow by 7.47% year-over-year, though its P/E ratio of 25.74 exceeds both the market average (24.17) and the Consumer Staples sector average (16.64). A PEG ratio of 4.20 suggests potential overvaluation, while the P/B ratio of 135.25 further signals elevated pricing relative to book value.

Short interest in CLCL-- stands at 1.50% of float, with a days-to-cover ratio of 2.2. Recent data shows a 0.92% monthly increase in short positions, reflecting a slight decline in investor sentiment. The company’s dividend remains a key draw, offering a 2.25% yield and 63 consecutive years of growth. A payout ratio of 58.76% is deemed sustainable, with projections indicating a 51.61% ratio in 2026, reinforcing dividend resilience.

Institutional ownership accounts for 80.41% of shares, highlighting strong institutional confidence. Insider ownership is minimal at 0.34%, with no insider transactions reported in the past three months. Environmental and social governance scores remain neutral, with no significant changes in corporate ownership structures.

A backtest of a strategy buying the top 500 stocks by daily volume and holding for one day yielded $2,300 in profit from 2022 to the present. The approach faced a maximum drawdown of -15.7% in early 2023, underscoring inherent market risks despite short-term gains.

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