Clorox Sees Unusually High Options Volume (NYSE:CLX)

Key Points

• Unusual bearish options activity: Investors purchased 15,500 Clorox put options, 120% above the average volume. Shares fell 0.4% to $105.34.
• Mixed financial performance: Clorox exceeded quarterly earnings and revenue expectations, but revenue declined 2% year over year and prior-year EPS was significantly higher. The company guided to fiscal 2027 EPS of $5.70–$6.00.
• Dividend raised amid cautious analyst sentiment: Clorox increased its quarterly dividend to $1.25 per share, representing a 4.7% yield, while analysts maintain a consensus “Reduce” rating and an average price target of $102.40.

The Clorox Company (NYSE:CLX - Get Free Report) was the target of some unusual options trading on Thursday. Investors bought 15,500 put options on the stock. This represents an increase of 120% compared to the average volume of 7,035 put options.

Clorox Trading Down 0.4%

Shares of Clorox stock traded down $0.42 on Thursday, reaching $105.34. 1,783,053 shares of the company's stock were exchanged, compared to its average volume of 2,555,188. The company has a market capitalization of $12.74 billion, a P/E ratio of 21.85, a price-to-earnings-growth ratio of 3.22 and a beta of 0.54. Clorox has a 52 week low of $84.70 and a 52 week high of $128.90. The firm's 50-day moving average is $97.50 and its two-hundred day moving average is $103.34. The company has a debt-to-equity ratio of 15.80, a quick ratio of 0.38 and a current ratio of 0.66.

Clorox (NYSE:CLX - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The company reported $1.66 EPS for the quarter, topping the consensus estimate of $1.64 by $0.02. Clorox had a net margin of 8.74% and a return on equity of 522.23%. The company had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $1.91 billion. During the same quarter last year, the firm posted $2.87 EPS. The company's quarterly revenue was down 2.0% on a year-over-year basis. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS. Sell-side analysts predict that Clorox will post 5.82 EPS for the current fiscal year.

Clorox Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Wednesday, August 12th will be issued a dividend of $1.25 per share. This is an increase from Clorox's previous quarterly dividend of $1.24. This represents a $5.00 annualized dividend and a dividend yield of 4.7%. The ex-dividend date is Wednesday, August 12th. Clorox's dividend payout ratio (DPR) is currently 102.90%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CLX. BNP Paribas Exane lowered their price target on shares of Clorox from $97.00 to $95.00 and set a "neutral" rating for the company in a report on Monday, July 20th. Jefferies Financial Group cut shares of Clorox from a "buy" rating to a "hold" rating and decreased their price objective for the stock from $125.00 to $98.00 in a research report on Tuesday, July 28th. Evercore set a $99.00 target price on shares of Clorox in a report on Tuesday, August 4th. Wells Fargo & Company upped their price target on shares of Clorox from $95.00 to $102.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 4th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Clorox in a report on Friday, July 10th. Twelve analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $102.40.

Institutional Trading of Clorox

Several large investors have recently made changes to their positions in the company. Cibc World Market Inc. acquired a new position in Clorox during the 2nd quarter worth approximately $608,000. OMERS ADMINISTRATION Corp acquired a new stake in Clorox in the second quarter valued at approximately $623,000. Sanctuary Advisors LLC acquired a new stake in Clorox in the second quarter valued at approximately $2,329,000. Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Clorox during the second quarter valued at approximately $11,079,000. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new stake in shares of Clorox during the second quarter valued at approximately $10,153,000. 78.53% of the stock is currently owned by institutional investors and hedge funds.

Clorox Company Profile

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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