Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial acquisition of company stock options by MARTIN HARRIS, Director at Colgate-Palmolive (NYSE:CL) was reported on May 15, based on a new SEC filing.
What Happened: Disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, HARRIS, Director at Colgate-Palmolive, made a strategic derivative acquisition. This involved acquiring stock options for 2,201 shares of CL, providing the right to buy the company's stock at an exercise price of $94.46 per share.
Colgate-Palmolive shares are currently trading up by 0.19%, with a current price of $94.71 as of Thursday morning. This brings the total value of HARRIS's 2,201 shares to $550.
Discovering Colgate-Palmolive: A Closer Look Since its founding in 1806, Colgate-Palmolive has grown to become a leading player in the household and personal care arena. In addition to its namesake oral care line, the firm manufactures shampoos, shower gels, deodorants, and homecare products that are sold in over 200 countries. International sales account for about 70% of its total business, including approximately 45% from emerging regions. It also owns specialty pet food maker Hill's, which primarily sells its products through veterinarians and specialty pet retailers.
Colgate-Palmolive: Financial Performance Dissected Revenue Growth: Colgate-Palmolive's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 6.18%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.
Exploring Profitability:
- Gross Margin: The company excels with a remarkable gross margin of 60.0%, indicating superior cost efficiency and profitability compared to its industry peers.
- Earnings per Share (EPS): With an EPS below industry norms, Colgate-Palmolive exhibits below-average bottom-line performance with a current EPS of 0.83.
Valuation Metrics: A Closer Look
- Price to Earnings (P/E) Ratio: The current P/E ratio of 30.01 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.96 as compared to the industry average, the stock might be considered overvalued based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Colgate-Palmolive's EV/EBITDA ratio stands at 19.33, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.
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Why Insider Activity Matters in Finance Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Transaction Codes Worth Your Attention Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Colgate-Palmolive's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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