Analysts Set Kimberly-Clark Price Target at $137 Amid Stock Ratings

Kimberly-Clark Co. (NYSE: KMB) has received an average rating of “Hold” from nine ratings firms, according to a report by Marketbeat Ratings. The stock analysis reveals that one analyst has rated the stock as a sell, five have issued a hold rating, and three have given it a buy rating. The average 12-month price target set by analysts stands at $137.00, indicating some optimism amid a mix of conservative ratings.

Recent activity from several brokerages has influenced the stock’s outlook. On October 1, 2023, Barclays reduced its price target from $139.00 to $131.00, maintaining an “equal weight” rating. Similarly, UBS Group lowered its target price from $140.00 to $130.00 and assigned a “neutral” rating on October 8, 2023. Evercore ISI also adjusted its target from $155.00 to $150.00, issuing an “outperform” rating on September 22, 2023. On September 25, Wells Fargo & Company cut its target from $140.00 to $130.00, while JPMorgan Chase & Co. set its price target at $127.00 on October 10, 2023.

Quarterly Earnings and Dividend Insights

Kimberly-Clark released its quarterly earnings data on August 1, 2023, reporting earnings per share (EPS) of $1.92. This figure surpassed the consensus estimate of $1.67 by $0.25. The company generated revenue of $4.16 billion during the quarter, which fell short of analysts’ expectations of $4.85 billion. Despite a strong return on equity of 201.43% and a net margin of 12.69%, revenue decreased by 1.6% compared to the previous year. In the same quarter last year, Kimberly-Clark reported an EPS of $1.96.

In addition to its earnings report, Kimberly-Clark announced a quarterly dividend of $1.26 per share, which was paid on October 2, 2023. Shareholders of record on September 5, 2023 received this dividend, representing an annualized total of $5.04 and a yield of 4.2%. The company’s payout ratio currently stands at 69.42%, reflecting a commitment to returning value to its shareholders.

Institutional Investor Activity

Recent activities among institutional investors indicate a cautious approach towards Kimberly-Clark. Cornerstone Wealth Management LLC increased its stake by 1.9% in the first quarter, acquiring an additional 74 shares for a total of 4,056 shares valued at approximately $577,000. Empirical Finance LLC also raised its position by 0.6% in the second quarter with an additional 76 shares, now holding 11,876 shares worth $1.531 million.

Hoge Financial Services LLC increased its stake by 4.2% during the first quarter, adding 77 shares to total 1,907 shares valued at $271,000. Similarly, Nwam LLC raised its position by 1.2%, now owning 6,386 shares valued at $908,000. Mesirow Financial Investment Management Inc. also increased its holdings by 3.7% during the second quarter, now owning 2,201 shares worth $284,000. Notably, institutional investors collectively hold 76.29% of Kimberly-Clark’s stock.

Kimberly-Clark Corporation, along with its subsidiaries, manufactures and markets personal care and consumer tissue products across the United States. The company operates in three segments: Personal Care, Consumer Tissue, and K-C Professional, offering a range of products under well-known brands including Huggies, Kotex, and Depend.

As the company navigates a challenging market environment, the adjustments in analyst ratings and institutional investment strategies reflect a complex landscape for Kimberly-Clark moving forward.