Clorox (NYSE:CLX) Shares Gap Down Following Analyst Downgrade

Key Points

• Shares gapped down after Wells Fargo cut its price target to $100 and kept an equal‑weight rating, with CLX opening at $90.99 versus a prior close of $96.44 and trading lower on heavy volume.
• Analysts have lowered targets and ratings — including Goldman Sachs to $94 (sell), Morgan Stanley to $97 (equal weight) and Barclays to $85 — and MarketBeat shows an average rating of "Reduce" with a $107.13 average target.
• Mixed fundamentals: Clorox beat Q3 EPS ($1.64 vs $1.55) while revenue was flat, but management trimmed FY‑2026 guidance citing weaker demand and rising costs, contributing to 52‑week lows; the stock yields about 5.6% ($1.24 quarterly).

The Clorox Company (NYSE:CLX - Get Free Report) shares gapped down prior to trading on Friday after Wells Fargo & Company lowered their price target on the stock from $110.00 to $100.00. The stock had previously closed at $96.44, but opened at $90.99. Wells Fargo & Company currently has an equal weight rating on the stock. Clorox shares last traded at $88.3570, with a volume of 2,072,281 shares trading hands.

Other equities analysts have also recently issued reports about the stock. The Goldman Sachs Group decreased their target price on shares of Clorox from $110.00 to $94.00 and set a "sell" rating for the company in a research note on Wednesday, January 7th. Morgan Stanley decreased their target price on shares of Clorox from $110.00 to $97.00 and set an "equal weight" rating for the company in a research note on Friday. Evercore decreased their target price on shares of Clorox from $132.00 to $115.00 and set an "underperform" rating for the company in a research note on Wednesday, February 4th. Barclays set a $85.00 target price on shares of Clorox in a research note on Friday. Finally, Citigroup decreased their target price on shares of Clorox from $115.00 to $110.00 and set a "neutral" rating for the company in a research note on Wednesday, April 15th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Clorox currently has an average rating of "Reduce" and an average target price of $107.13.

Clorox News Roundup

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Q3 earnings beat consensus: Clorox reported non‑GAAP EPS of $1.64 versus estimates (~$1.55), which reassures investors on near‑term profit resilience. Clorox (CLX) Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management highlights growth initiatives: The earnings call stressed product innovation and targeted acquisitions as levers to restore top‑line growth and margins over time — a constructive long‑term message for investors. Clorox Co (CLX) Q3 2026 Earnings Call Highlights: Navigating Challenges with Strategic Innovations
• Neutral Sentiment: Revenue essentially flat and in line with expectations: Q3 sales were about $1.67B, roughly flat year‑over‑year and roughly matching street estimates, which explains the mixed market reaction (beat on EPS, matched on revenue). Clorox Reports Q3 Fiscal Year 2026 Results, Updates Outlook
• Neutral Sentiment: Stock was an after‑hours mover: CLX was flagged among after‑hours movers after the print, indicating heightened trading and volatility as markets digest the mixed news. After-hours movers: AAPL, ROKU, RBLX, TEAM, SNDK, RDDT, TWLO, CLX, WDC
• Negative Sentiment: Full‑year EPS outlook trimmed: Management updated FY‑2026 guidance below prior expectations, which caps upside and explains investor caution despite the quarter's EPS beat. Clorox Posts Mixed Q3 Results, Lowers Fiscal 2026 Outlook
• Negative Sentiment: Weaker demand and rising costs cited: Reports note the company cut its profit forecast due to softer demand and cost pressures, two factors that weigh on margins and near‑term returns. Clorox cuts annual profit forecast on weaker demand, rising costs
• Negative Sentiment: Shares have recently hit 52‑week lows amid the mixed print and lowered outlook, signaling continued investor caution and possible technical selling pressure. Consumer Products Giant Clorox Shares Are Hitting New 52-Week Lows Thursday: Here's Why

Hedge Funds Weigh In On Clorox

A number of large investors have recently added to or reduced their stakes in CLX. Sequoia Financial Advisors LLC raised its position in shares of Clorox by 6.8% in the first quarter. Sequoia Financial Advisors LLC now owns 6,433 shares of the company's stock valued at $667,000 after buying an additional 411 shares during the last quarter. KLCM Advisors Inc. raised its position in shares of Clorox by 43.4% in the first quarter. KLCM Advisors Inc. now owns 18,230 shares of the company's stock valued at $1,889,000 after buying an additional 5,515 shares during the last quarter. Kornitzer Capital Management Inc. KS raised its position in shares of Clorox by 2.1% in the first quarter. Kornitzer Capital Management Inc. KS now owns 199,915 shares of the company's stock valued at $20,717,000 after buying an additional 4,102 shares during the last quarter. Main Street Research LLC raised its position in shares of Clorox by 4.5% in the first quarter. Main Street Research LLC now owns 9,537 shares of the company's stock valued at $988,000 after buying an additional 412 shares during the last quarter. Finally, Kestra Advisory Services LLC raised its position in shares of Clorox by 15.4% in the first quarter. Kestra Advisory Services LLC now owns 31,820 shares of the company's stock valued at $3,297,000 after buying an additional 4,252 shares during the last quarter. 78.53% of the stock is currently owned by institutional investors and hedge funds.

Clorox Price Performance

The stock's 50-day moving average price is $108.21 and its 200 day moving average price is $108.82. The firm has a market capitalization of $10.67 billion, a price-to-earnings ratio of 14.47, a PEG ratio of 0.47 and a beta of 0.65. The company has a quick ratio of 0.48, a current ratio of 0.74 and a debt-to-equity ratio of 71.03.

Clorox (NYSE:CLX - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.64 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.09. The business had revenue of $1.67 billion during the quarter, compared to analysts' expectations of $1.67 billion. Clorox had a net margin of 11.17% and a return on equity of 383.01%. The company's quarterly revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.45 earnings per share. Clorox has set its FY 2026 guidance at 5.450-5.650 EPS. Equities research analysts expect that The Clorox Company will post 5.87 earnings per share for the current fiscal year.

Clorox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Wednesday, April 22nd will be given a $1.24 dividend. This represents a $4.96 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date is Wednesday, April 22nd. Clorox's dividend payout ratio is 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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