Church & Dwight (CHD) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of Church & Dwight (NYSE:CHD) from a buy rating to a hold rating in a report issued on Monday.

According to Zacks, “Church & Dwight has outpaced the industry in the past six months, courtesy of strong organic sales trend as well as focus on international business and acquisitions. These factors have helped the company retain its sturdy surprise record in third-quarter 2018, wherein the top and the bottom line rose year on year. While earnings gained from higher sales and lower taxes, sales were backed by consistent category growth and market share gains. We note that the company’s international business is steadily gaining from strong brands. Also, organic sales have been sturdy, courtesy of strength in global consumer products. Encouragingly, management raised organic sales view for 2018, while keeping net sales view intact. However, the company’s gross margin has been declining, due to higher commodity and transport costs. Further, performance in the Specialty Products unit has been dismal, thanks to lower dairy products demand.”

A number of other analysts have also recently issued reports on the company. Bank of America boosted their target price on Church & Dwight from $55.00 to $58.00 and gave the stock an underperform rating in a report on Thursday, October 4th. Jefferies Financial Group boosted their target price on Church & Dwight from $65.00 to $68.00 and gave the stock a buy rating in a report on Monday, October 29th. Deutsche Bank cut Church & Dwight from a hold rating to a sell rating and set a $51.00 target price for the company. in a report on Wednesday, October 10th. ValuEngine upgraded Church & Dwight from a hold rating to a buy rating in a report on Wednesday, September 12th. Finally, Oppenheimer boosted their target price on Church & Dwight from $60.00 to $66.00 and gave the stock an outperform rating in a report on Thursday, September 27th. Four investment analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the company. Church & Dwight has an average rating of Hold and an average price target of $60.06.

CHD opened at $65.53 on Monday. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.93 and a quick ratio of 0.55. The stock has a market capitalization of $16.14 billion, a price-to-earnings ratio of 33.78, a price-to-earnings-growth ratio of 2.85 and a beta of 0.31. Church & Dwight has a 12 month low of $44.53 and a 12 month high of $67.93.

Church & Dwight (NYSE:CHD) last posted its quarterly earnings results on Thursday, November 1st. The company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.54 by $0.04. The company had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Church & Dwight had a return on equity of 25.00% and a net margin of 20.25%. The firm’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.49 EPS. As a group, sell-side analysts forecast that Church & Dwight will post 2.28 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Thursday, November 15th will be given a dividend of $0.2175 per share. This represents a $0.87 annualized dividend and a yield of 1.33%. The ex-dividend date of this dividend is Wednesday, November 14th. Church & Dwight’s dividend payout ratio (DPR) is presently 44.85%.

In related news, Director James Craigie sold 300,000 shares of the business’s stock in a transaction that occurred on Monday, November 5th. The stock was sold at an average price of $66.43, for a total transaction of $19,929,000.00. Following the transaction, the director now directly owns 327,577 shares of the company’s stock, valued at approximately $21,760,940.11. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Steven P. Cugine sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, November 19th. The stock was sold at an average price of $64.39, for a total value of $965,850.00. Following the transaction, the executive vice president now directly owns 43,948 shares in the company, valued at $2,829,811.72. The disclosure for this sale can be found here. Insiders own 2.00% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the stock. Bartlett & Co. LLC lifted its position in Church & Dwight by 937.5% during the 2nd quarter. Bartlett & Co. LLC now owns 1,992 shares of the company’s stock worth $106,000 after acquiring an additional 1,800 shares in the last quarter. Harvest Fund Management Co. Ltd acquired a new position in Church & Dwight during the 3rd quarter worth approximately $107,000. Fort L.P. acquired a new position in Church & Dwight during the 2nd quarter worth approximately $129,000. Girard Partners LTD. acquired a new position in Church & Dwight during the 3rd quarter worth approximately $141,000. Finally, Global Trust Asset Management LLC acquired a new position in Church & Dwight during the 3rd quarter worth approximately $142,000. 82.07% of the stock is currently owned by hedge funds and other institutional investors.

Church & Dwight Company Profile

Church & Dwight Co, Inc develops, manufactures, and markets household, personal care, and specialty products. The company operates through three segments: Consumer Domestic, Consumer International, and the Specialty Products Division. It offers baking soda, cat litter, carpet deodorization, and laundry detergent products under the ARM & HAMMER brand; condoms, lubricants, and vibrators TROJAN brand; stain removers, cleaning solutions, laundry detergents, dishwashing detergents, and bleach alternatives under the OXICLEAN brand; battery-operated and manual toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesic products under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L'IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; and water flossers and replacement showerheads under the WATERPIK brand.

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