Clorox (NYSE:CLX) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• Clorox hit a new 52-week low after Morgan Stanley cut its price target from $136 to $110 and kept an "equal weight" rating, with the stock trading as low as $96.58 (last $96.78) on heavy volume.
• Analysts have a consensus rating of "Reduce" with an average target of $111.33 (one Buy, 12 Hold, 4 Sell), and the stock now trades below its 50-day and 200-day moving averages (~$112 and ~$110) while trading down about 2.8%.
• Clorox remains a high-yield name — it declared a quarterly dividend of $1.24 (5.1% yield; ex-dividend Apr 22) — but it recently missed EPS estimates ($1.39 vs. $1.43) and carries a high payout ratio (~81%).

The Clorox Company (NYSE:CLX - Get Free Report)'s share price reached a new 52-week low during trading on Wednesday after Morgan Stanley lowered their price target on the stock from $136.00 to $110.00. Morgan Stanley currently has an equal weight rating on the stock. Clorox traded as low as $96.58 and last traded at $96.7810, with a volume of 2419468 shares traded. The stock had previously closed at $99.61.

CLX has been the topic of several other reports. Rothschild & Co Redburn set a $117.00 price target on Clorox in a research report on Friday, February 13th. Weiss Ratings raised Clorox from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, April 13th. Wells Fargo & Company lowered their price target on Clorox from $125.00 to $110.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 8th. Wall Street Zen raised Clorox from a "sell" rating to a "hold" rating in a research report on Saturday, February 7th. Finally, TD Cowen raised their price target on Clorox from $98.00 to $111.00 and gave the company a "hold" rating in a research report on Tuesday, March 31st. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Clorox has a consensus rating of "Reduce" and an average target price of $111.33.

Institutional Investors Weigh In On Clorox

A number of institutional investors have recently added to or reduced their stakes in the company. State Street Corp grew its position in Clorox by 3.5% during the third quarter. State Street Corp now owns 8,434,277 shares of the company's stock worth $1,039,946,000 after buying an additional 282,794 shares in the last quarter. Invesco Ltd. grew its position in Clorox by 22.1% during the fourth quarter. Invesco Ltd. now owns 4,880,341 shares of the company's stock worth $492,085,000 after buying an additional 884,751 shares in the last quarter. Geode Capital Management LLC lifted its stake in Clorox by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 3,172,233 shares of the company's stock worth $318,613,000 after purchasing an additional 10,060 shares during the period. Van ECK Associates Corp lifted its stake in Clorox by 15.7% during the fourth quarter. Van ECK Associates Corp now owns 3,136,405 shares of the company's stock worth $316,244,000 after purchasing an additional 426,433 shares during the period. Finally, Two Sigma Investments LP lifted its stake in Clorox by 33.8% during the third quarter. Two Sigma Investments LP now owns 1,740,175 shares of the company's stock worth $214,564,000 after purchasing an additional 439,797 shares during the period. 78.53% of the stock is owned by institutional investors and hedge funds.

Clorox Trading Down 2.8%

The stock has a market cap of $11.70 billion, a P/E ratio of 15.81, a PEG ratio of 0.51 and a beta of 0.65. The company has a debt-to-equity ratio of 71.03, a current ratio of 0.74 and a quick ratio of 0.48. The business's 50 day simple moving average is $112.06 and its 200 day simple moving average is $109.79.

Clorox (NYSE:CLX - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $1.39 EPS for the quarter, missing analysts' consensus estimates of $1.43 by ($0.04). The business had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. Clorox had a return on equity of 383.01% and a net margin of 11.17%.The firm's revenue for the quarter was down .8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.55 EPS. On average, analysts expect that The Clorox Company will post 5.89 earnings per share for the current fiscal year.

Clorox Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Shareholders of record on Wednesday, April 22nd will be paid a dividend of $1.24 per share. The ex-dividend date is Wednesday, April 22nd. This represents a $4.96 dividend on an annualized basis and a yield of 5.1%. Clorox's dividend payout ratio (DPR) is currently 81.05%.

About Clorox

The Clorox Company is a leading manufacturer and marketer of consumer and professional products designed to help people care for their homes and live healthy, sustainable lives. Its portfolio spans cleaning and household products, food and beverages, water filtration systems and cat litter, serving both retail and institutional customers. The company's flagship bleach and disinfecting products are well known in the United States and many international markets, where they help prevent the spread of germs in homes, hospitals, schools and businesses.

Clorox's diverse brand lineup includes liquid bleach and surface cleaners, eco-friendly cleaning tools, food preservation and preparation items, charcoal grills and briquettes, specialty foods and beverages, pet care products and personal care lines.

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