Colgate-Palmolive (CL) shares remain in focus on Monday following reports that the company is exploring a major strategic divestment valued at more than $1 billion. CL is working with advisers at Goldman Sachs to explore the sale of non-core personal care brands, including Softsoap, Irish Spring, and Speed Stick, the report added.
The news arrives at a time when Colgate stock is struggling with regaining momentum, currently down about 12% versus its year-to-date high.
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www.barchart.comWhat a Brand Sale Would Mean for Colgate Stock
The potential transaction, which could fetch upward of $1 billion, aims to reallocate capital toward higher-growth segments like oral care and Hill’s Pet Nutrition while offsetting margin pressure in North America.
For CL shares, the divestment could prove constructive as it would unlock “shareholder value” by optimizing operational efficiency and sharpening brand focus.
From a technical perspective, however, Colgate-Palmolive remains unattractive, trading decisively below its major moving averages (MAs), with an RSI in the early 30s reinforcing immense selling pressure.
CL pays a healthy dividend yield of 2.44%, which may make up for the lack of technical momentum.
Institutions Remain Bullish on CL Shares
Despite muted year-to-date performance, institutional confidence in Colgate shares remains robust as evidenced in recent regulatory 13F filings.
Baird expanded its stake in the consumer products specialist in the second quarter of 2026, while the National Pension Service of Korea increased its equity stake during the same period.
Additionally, Corient Private Wealth loaded up on another 143,812 company shares in Q2 to hold a total of nearly $60 million worth of CL.
Investors should also note that Colgate-Palmolive is currently trading at a price-to-sales (P/S) ratio of about 3.4x, which makes it relatively inexpensive to own than rival Procter & Gamble (PG) at roughly 3.9x.
What’s the Consensus Rating on Colgate-Palmolive?
It's also worth mentioning that Wall Street firms remain bullish as ever on Colgate-Palmolive for the remainder of 2026.
The consensus rating on CL stock sits at “Moderate Buy,” with the mean price target of about $160 indicating potential upside of more than 10% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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