London, Jan 14, 2026, 08:46 GMT — Regular session
- Reckitt shares dipped early in London following a downgrade by a broker.
- RBC downgrades the rating to “sector perform” and lowers its target price.
- Investors are focused on the upcoming special dividend and share consolidation scheduled for later this month.
Reckitt Benckiser Group Plc saw its shares drop nearly 0.8% in early London trade Wednesday following RBC Capital Markets’ downgrade to “sector perform” from “outperform.” The firm also cut its price target to 6,200 pence. Shares hovered near 6,140 pence. (London South East)
This is crucial now as Reckitt enters a phase of corporate moves that could distort typical share price signals. Some investors, anticipating a one-time payout, buy shares to grab the cash and then sell off fast; others prefer to hold back until things quiet down.
Reckitt wrapped up the sale of its Essential Home business to Advent International on Dec. 31, while retaining a 30% equity stake in the acquisition vehicle, the company announced. CEO Kris Licht described the move as “a major step forward in our strategy,” highlighting the group’s shift toward concentrating on consumer health and hygiene brands. (Investegate)
A regulatory filing on Wednesday revealed Reckitt repurchased 48,340 ordinary shares on Jan. 13 via BNP Paribas, at a volume-weighted average price of 6,203.81 pence. The company confirmed these shares will be held in treasury.
Buybacks help prop up a stock by reducing available shares. They also boost per-share metrics as the share count drops, but the impact hinges on how long the company continues repurchasing and the prices paid.
Reckitt unveiled plans for a one-off special dividend of 235 pence per share, paired with a share consolidation—essentially a reverse split to shrink the share count once the cash is distributed. Shareholders will vote on January 27, and if approved, the payout is set for February 20. The company expects the consolidation to keep the share price at a “broadly similar level” afterward.
For the moment, the broker shift redirects attention to valuation and short-term gains. Trading just shy of RBC’s updated target, the stock is vulnerable—only a small sell-off is needed to push it down on a slow morning.
The capital return depends on shareholder approval, and the schedule remains fluid. Special dividends and share consolidations often trigger odd price swings near critical dates, even when the financial rationale is clear—moves that can unsettle quick traders.
Reckitt occupies the defensive niche in the FTSE 100 — known for soap, surface cleaners, and cold and flu remedies — yet broker calls still come through when the market feels the positive news has been fully priced in.
Investors are also focused on Reckitt’s full-year results due March 5, with an investor presentation scheduled for 08:30 GMT at the London Stock Exchange. (Reckitt)
