Church & Dwight Co. Inc. (CHD) Volatility Spurs A Quest For Clarity


Capital Research & Management Co…. recently announced the acquisition of new stake in Church & Dwight Co. Inc. (NYSE:CHD). The institutional investor has increased its shareholding in the Consumer Defensive company by 16.33% to 15.7 million shares with purchase of 2.2 million shares. This fresh investment now brings its stake to 6.38% valued currently at $1.21 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.16 million to 13.29 million shares. And Massachusetts Financial Services … has lifted its position by 124.91% or 2.12 million shares – to 3.82 million shares.

With over 1.35 million Church & Dwight Co. Inc. (CHD) shares trading Friday and a closing price of $85.87 on the day, the dollar volume was approximately $115.66 million. The shares have shown a positive weekly performance of 1.18% and its price on 07/24/20 lost nearly -0.41%. Currently, there are 245.60M common shares owned by the public and among those 245.31M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for CHD have a consensus price objective of $78.60. The analysts have set the share’s price value over the next 12 months at a high of $100.00 and a low of $65.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Church & Dwight Co. Inc. stock is 2.50 for the next 12 months. The average price target is -11.72% below its last price level and a downside to the estimated low will see the stock lose -32.11% over that period. But an upside of 14.13% will see the stock hit the forecast high price target while mean target price for the stock is $75.00.

Insiders at the company have transacted a total of 62 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 35 of these insider trades were purchases, accounting for 782,573 shares. Insider sales of the common stock occurred on 27 occasions, with total insider shares sold totaling 770,023 shares.

The top 3 mutual fund holders in Church & Dwight Co. Inc. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and American Balanced Fund. Vanguard Total Stock Market Index owns 7.02 million shares of the company’s stock, all valued at over $542.85 million. The company sold 43724.0 shares recently to bring their total holdings to about 2.86% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.32 million shares to see its total holdings shrink to 6.08 million shares valued at over $470.15 million and representing 2.47% of the shares outstanding. American Balanced Fund sold -0.3 million shares to bring its total holdings to over 5.91 million shares at a value of $456.84 million. American Balanced Fund now owns shares totaling to 2.40% of the shares outstanding.

Shares of Church & Dwight Co. Inc. (NYSE: CHD) opened at $86.27, up $0.05 from a prior closing price of $86.22. However, the script later closed the day at $85.87, down -0.41%. The company’s stock has a 5-day price change of 1.18% and 20.35% over the past three months. CHD shares are trading 22.08% year to date (YTD), with the 12-month market performance up to 15.29% higher. It has a 12-month low price of $47.98 and touched a high of $86.95 over the same period. Currently, 1.35 million shares have been traded, compared to an average intraday trading volume of 1.59 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.67%, 11.38%, and 18.67% respectively.

Institutional ownership of Church & Dwight Co. Inc. (NYSE: CHD) shares accounts for 85.00% of the company’s 245.60M shares outstanding. Mutual fund holders own 39.50%, while other institutional holders and individual stakeholders account for 44.95% and 3.29% respectively.

It has a market capitalization of $20.95B and a beta (3y monthly) value of 0.33. The stock’s trailing 12-month PE ratio is 32.27, while the earnings-per-share (ttm) stands at $2.66. The company has a PEG of 3.79 and a Quick Ratio of 0.80 with the debt-to-equity ratio at 0.99. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.60% over the week and 1.95% over the month.

Analysts forecast that Church & Dwight Co. Inc. (CHD) will achieve an EPS of $0.63 for the current quarter, $0.7 for the next quarter and $2.92 for 2021. The lowest estimate earnings-per-share for the quarter is $0.59 while analysts give the company a high EPS estimate of $0.75. Comparatively, EPS for the current quarter was $0.57 a year ago. Earnings per share for the fiscal year are expected to increase by 7.70%, and 6.73% over the next financial year. EPS should shrink at an annualized rate of 8.51% over the next five years, compared to 10.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Church & Dwight Co. Inc. (CHD) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 9 of the 19 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the CHD, a number of firms have released research notes about the stock. Argus stated their Buy rating for the stock in a research note on July 15, 2020, with the firm’s price target at $98. Credit Suisse coverage for the Church & Dwight Co. Inc. (CHD) stock in a research note released on June 18, 2020 offered a Outperform rating with a price target of $85. JP Morgan was of a view on December 10, 2019 that the stock is Underweight, while Citigroup gave the stock Neutral rating on November 01, 2019, issuing a price target of $71. BofA/Merrill on their part issued Buy rating on September 27, 2019.


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