In the finance world, it’s common knowledge that investment firms are continuously on the lookout for attractive assets to acquire. One such firm, Natixis, recently made a splash by acquiring an 83.5% interest in Church & Dwight Co., Inc. (NYSE:CHD). According to their recent SEC filing on June 12th, Natixis acquired an additional 13,033 shares of the personal care and household products company during the fourth quarter of 2023, bringing their holdings up to a total of 28,645 shares which were valued at $2,309,000.
This news was particularly noteworthy as Church & Dwight had recently released its earnings report for Q1 2023. The report revealed that the company had exceeded expectations with revenue of $1.43 billion and earnings per share (EPS) of $0.85. As compared to the same period last year, revenue was up by 10.2%, which indicated growth in a sector where other companies have struggled.
However, insiders seem to have mixed views about the future trends associated with CHD — while investment firms like Natixis are accumulating significant stakes in Church & Dwight stock, Company insiders including Director Robert K. Shearer and CEO Matthew Farrell are selling off their shares citing personal reasons attributed to financial planning for relocation costs etc.With Shearer divesting around $1.1 million worth of his own holdings alone,you can’t help but wonder if there is something more ominous behind this seemingly positive growth?
Another point worth noting is that although Church & Dwight’s earnings were higher than anticipated during Q1 2023,Natixis only recently acquired a majority stake in the company during Q4 of 2023 post earnings release.Therefore it will be interesting to see how much these results influenced Natixis’ bullish move.Unlike some other external factors emerging competitors could also pose threat.
Given all these factors, both investors and analysts have mixed views about the future of Church & Dwight in the coming months. Some are bullish on the stock and believe that it is well-positioned to take advantage of its impressive earnings report, while others remain skeptical and believe that there may be dark clouds looming on the horizon.
Only time will tell how it all unfolds with the company and what kind of gains or losses investors might face.As for now, analysts have put forth an estimate of $3.1 EPS for 2023 which would be interesting to observe looking at current market patterns.
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Church & Dwight Co., Inc.: Insider Sales Raise Questions for Investors
Church & Dwight Co., Inc. has been making headlines in recent months due to a series of major events surrounding the company. The market capitalization for Church & Dwight currently stands at $22.91 billion as of June 12, 2023, following a series of investments from large institutional investors. Guardian Wealth Advisors LLC bought shares valued at $34,000 in the third quarter while Delta Asset Management LLC TN and Standard Family Office LLC acquired new positions worth $40,000 and $49,000 respectively during the fourth quarter. Glassman Wealth Services also increased its stake in Church & Dwight by 39.1% during the same period.
Despite these positive developments, there have been notable insider sales by key personnel within the company. In May 2023, Director Robert K. Shearer sold 11,590 shares of CHD stock worth over $1 million before disclosing this information with the Securities and Exchange Commission (SEC). CEO Matthew Farrell also sold off 138,081 shares that were worth a total of $13 million on May 1st leaving him with 112,444 shares valued at just under $11 million.
Investors are eagerly awaiting news on how these insider sales might impact future dividend payouts and product developments from Church & Dwight Co., Inc.. During the previous quarter, shareholders received a quarterly dividend payout of $0.2725 per share which represents an annualized dividend yield of 1.16%.
While some equity analysts have maintained their support for Church & Dwight Co., Inc.’s long-term growth potential in light of these occurrences, others have issued warnings about potential risks associated with holding onto CHD stock. The current average consensus rating for CHD is “Hold” according to data obtained from Bloomberg.com.
Looking ahead into the future, it remains to be seen how Church & Dwight will navigate these challenging circumstances amidst rising investor skepticism and controversy over insider trading practices involving key members of its management team. However, the company remains steadfast in its commitment to delivering top-quality household products while maintaining transparency and accountability with regard to all future stock transactions.