Kimberly-Clark Acquires Majority Stake in Thinx; Shares Rise 2.5%

Kimberly-Clark Corporation (NYSE:KMB), a manufacturer of menstrual hygiene products, recently revealed that it has acquired a majority stake in reusable period and incontinence underwear producer Thinx, Inc. for an undisclosed amount.

Following the news, shares of the company rose 2.5% to close at $131.81 on Friday.

Strategic Impact

Kimberly-Clark’s investment in Thinx is likely to strengthen its position in the space and complement its products offering. The company made an initial minority investment in Thinx in 2019.

Management Commentary

The Group President of Kimberly-Clark’s North American consumer business, Russ Torres, said, “Our investment in the success of Thinx represents a compelling strategic fit as we build our portfolio of period and light bladder leakage solutions, and we are excited for the opportunity this expanded partnership will provide to both Kimberly-Clark and Thinx. The investment in Thinx paves the road for collaboration and allows us to work together to drive category growth with our retail partners while continuing to support Thinx in direct-to-consumer channels.”

Stock Rating

Consensus among analysts is a Hold based on 1 Buy, 8 Holds and 4 Sells. The average Kimberly-Clark stock prediction of $134 implies upside potential of 1.7% from current levels. Shares have gained 2.7% over the past year.

Hedge Funds’ Confidence

TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Kimberly-Clark is currently Very Positive. Moreover, the cumulative change in holdings across all nine hedge funds that were active in the last quarter was an increase of 131,100 shares.

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