Kimberly-Clark (NASDAQ:KMB) Stock Gets Downgrade from Zacks Research

Kimberly-Clark (NASDAQ:KMB) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday, Zacks reports.

Other equities analysts have also issued research reports about the stock. Barclays increased their target price on shares of Kimberly-Clark from $101.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Piper Sandler lowered their price target on shares of Kimberly-Clark from $121.00 to $118.00 and set an “overweight” rating on the stock in a research report on Friday, September 11th. BNP Paribas Exane boosted their price target on shares of Kimberly-Clark from $101.00 to $110.00 and gave the company a “neutral” rating in a research report on Friday, October 16th. UBS Group upped their price target on shares of Kimberly-Clark from $115.00 to $116.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Finally, TD Cowen cut their price objective on shares of Kimberly-Clark from $104.00 to $97.00 and set a “hold” rating for the company in a report on Tuesday, October 13th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $116.50.

Kimberly-Clark Stock Down 1.6%

KMB stock opened at $106.64 on Tuesday. The stock has a fifty day moving average of $102.67 and a 200-day moving average of $102.87. Kimberly-Clark has a fifty-two week low of $92.42 and a fifty-two week high of $123.09. The company has a market capitalization of $35.47 billion, a price-to-earnings ratio of 18.14, a PEG ratio of 5.86 and a beta of 0.25. The company has a debt-to-equity ratio of 3.45, a quick ratio of 0.69 and a current ratio of 0.91.

Kimberly-Clark (NASDAQ:KMB) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $1.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.21). Kimberly-Clark had a net margin of 11.79% and a return on equity of 143.92%. The firm had revenue of $4.19 billion during the quarter, compared to the consensus estimate of $4.22 billion. During the same quarter in the prior year, the firm posted $1.92 earnings per share. The company’s revenue was up .6% on a year-over-year basis. As a group, equities research analysts predict that Kimberly-Clark will post 6.83 earnings per share for the current year.

Institutional Investors Weigh In On Kimberly-Clark

A number of institutional investors and hedge funds have recently modified their holdings of the company. AdvisorNet Financial Inc grew its stake in Kimberly-Clark by 18.3% during the first quarter. AdvisorNet Financial Inc now owns 665 shares of the company’s stock valued at $64,000 after acquiring an additional 103 shares in the last quarter. Mystic Asset Management Inc. increased its holdings in Kimberly-Clark by 0.5% during the 3rd quarter. Mystic Asset Management Inc. now owns 20,354 shares of the company’s stock worth $1,983,000 after acquiring an additional 109 shares during the period. Assetmark Inc. lifted its stake in Kimberly-Clark by 0.6% in the 1st quarter. Assetmark Inc. now owns 20,216 shares of the company’s stock worth $1,950,000 after purchasing an additional 121 shares in the last quarter. Annex Advisory Services LLC lifted its stake in Kimberly-Clark by 2.0% in the 3rd quarter. Annex Advisory Services LLC now owns 6,533 shares of the company’s stock worth $637,000 after purchasing an additional 125 shares in the last quarter. Finally, Root Financial Partners LLC lifted its stake in Kimberly-Clark by 17.6% in the 1st quarter. Root Financial Partners LLC now owns 847 shares of the company’s stock worth $82,000 after purchasing an additional 127 shares in the last quarter. 76.29% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Kimberly-Clark

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: China antitrust approval removes a major regulatory hurdle for Kimberly-Clark’s proposed Kenvue acquisition, improving the deal’s closing prospects and potentially expanding the company’s consumer-health portfolio. Kimberly-Clark’s $40B purchase of Kenvue wins China antitrust approval
• Positive Sentiment: Bank of America maintained a Buy rating and a $120 price target, citing strong execution and earnings momentum. That view provides a bullish counterpoint to concerns surrounding the acquisition and financing. Kimberly-Clark maintained at Buy with $120 price target
• Positive Sentiment: Kimberly-Clark de México reported margin gains and a strong cash position in the third quarter, suggesting improving operating performance in an important regional business. Kimberly-Clark de México third-quarter results
• Neutral Sentiment: Commentary comparing Kimberly-Clark with Clorox highlights that both companies offer yields above 4.5% but are undergoing overhauls, making execution and balance-sheet strength more important than headline yield alone. Kimberly-Clark vs. Clorox dividend comparison
• Negative Sentiment: Kimberly-Clark priced $4.9 billion of senior unsecured notes to help fund the Kenvue transaction. The financing increases leverage and interest obligations, intensifying investor concerns about balance-sheet risk and future dividend flexibility. Kimberly-Clark prices $4.9 billion notes for Kenvue deal
• Negative Sentiment: Recent analysis questions whether Kimberly-Clark’s long dividend record is adequately supported by free cash flow, particularly as payout ratios leave little cushion and the company takes on acquisition debt. Jim Cramer calls Kimberly-Clark a hated Dividend King

About Kimberly-Clark

Kimberly-Clark Corporation (NASDAQ:KMB) is a global consumer products company that develops and markets personal care, tissue and professional hygiene products. Its portfolio includes products for babies and children, feminine care, adult care, family care and workplace hygiene.

The company’s well-known brands include Huggies diapers and wipes, Kleenex facial tissue, Cottonelle bathroom tissue, Scott toilet paper and paper towels, Kotex feminine care products, and Depend, Poise and GoodNites products.