Equity Investment Corp Takes Position in The Clorox Company $CLX

Key Points

• Equity Investment Corp acquired 1.17 million Clorox shares worth approximately $111.8 million, representing about 0.97% of the company and 2.1% of the fund’s holdings. Institutional investors collectively own 78.53% of Clorox.
• Clorox’s latest quarter beat expectations, with $1.66 in EPS and $1.95 billion in revenue, but revenue fell 2% year over year. The company raised its quarterly dividend to $1.25, equivalent to a 4.7% yield, though its payout ratio exceeds 100%.
• Analyst sentiment remains cautious: Clorox has a consensus “Reduce” rating and an average price target of $102.40 versus a share price of $105.86. Forecast cuts and concerns about weaker Hidden Valley Ranch sales contrast with some longer-term EPS estimate increases.

Equity Investment Corp bought a new position in The Clorox Company (NYSE:CLX - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 1,171,414 shares of the company's stock, valued at approximately $111,800,000. Clorox makes up about 2.1% of Equity Investment Corp's holdings, making the stock its 22nd biggest holding. Equity Investment Corp owned approximately 0.97% of Clorox at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Clorox during the second quarter valued at $958,640,000. Norges Bank purchased a new stake in Clorox in the 4th quarter worth $135,735,000. Bank of New York Mellon Corp bought a new position in shares of Clorox during the 2nd quarter valued at about $123,154,000. Invesco Ltd. boosted its holdings in shares of Clorox by 22.1% during the 4th quarter. Invesco Ltd. now owns 4,880,341 shares of the company's stock valued at $492,085,000 after purchasing an additional 884,751 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in Clorox by 6,907.9% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 749,703 shares of the company's stock valued at $75,593,000 after buying an additional 739,005 shares during the last quarter. Institutional investors own 78.53% of the company's stock.

Trending Headlines about Clorox

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Zacks Research raised its EPS forecasts for Clorox’s third-quarter 2027 and fourth-quarter 2027, and projects earnings of $6.89 per share for fiscal 2029. These increases suggest some potential for longer-term earnings growth, although they were offset by reductions elsewhere.
• Neutral Sentiment: An analysis comparing Church & Dwight (CHD) and Clorox (CLX) highlights Clorox’s higher dividend yield. However, Clorox has increased its dividend more cautiously, making the stock more attractive to current-income investors than to investors seeking rapid dividend growth. Two Consumer Staples, Two Dividend Strategies: Church & Dwight and The Clorox Company
• Negative Sentiment: A cyclospora outbreak has made consumers more cautious about buying salads, and one analyst reportedly sees declining sales for Clorox’s Hidden Valley Ranch dressing. A sustained pullback in salad consumption could weigh on brand sales and near-term revenue. Hidden Valley Ranch dressing may be a victim of this summer’s salad scare
• Negative Sentiment: Zacks Research lowered its fiscal 2027 EPS estimate to $5.82 from $6.00 and cut its fiscal 2028 forecast to $6.23 from $6.36. It also reduced estimates for the first and second quarters of fiscal 2028 and the second quarter of fiscal 2027. The firm maintains a Strong Sell rating, which is a notable negative signal despite several upward revisions.

Clorox Stock Down 0.1%

Shares of NYSE CLX opened at $105.86 on Wednesday. The Clorox Company has a 1 year low of $84.70 and a 1 year high of $128.90. The firm has a 50-day simple moving average of $98.44 and a two-hundred day simple moving average of $103.17. The company has a market cap of $12.80 billion, a P/E ratio of 21.96, a PEG ratio of 3.15 and a beta of 0.54. The company has a debt-to-equity ratio of 15.80, a current ratio of 0.66 and a quick ratio of 0.38.

Clorox (NYSE:CLX - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $1.66 EPS for the quarter, beating analysts' consensus estimates of $1.64 by $0.02. Clorox had a return on equity of 522.23% and a net margin of 8.74%.The firm had revenue of $1.95 billion for the quarter, compared to analysts' expectations of $1.91 billion. During the same quarter in the prior year, the firm posted $2.87 earnings per share. 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. Research analysts anticipate that The Clorox Company will post 5.8 earnings per share for the current year.

Clorox Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Wednesday, August 12th will be given a $1.25 dividend. This is a boost from Clorox's previous quarterly dividend of $1.24. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $5.00 annualized dividend and a yield of 4.7%. Clorox's dividend payout ratio is currently 103.73%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CLX. Deutsche Bank Aktiengesellschaft set a $98.00 target price on Clorox in a research report on Tuesday, August 4th. JPMorgan Chase & Co. boosted their price target on shares of Clorox from $92.00 to $95.00 and gave the stock an "underweight" rating in a research report on Tuesday, August 4th. Evercore set a $99.00 price objective on shares of Clorox in a research report on Tuesday, August 4th. UBS Group lifted their price objective on shares of Clorox from $100.00 to $105.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Finally, Wells Fargo & Company boosted their target price on shares of Clorox from $95.00 to $102.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 4th. Twelve investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $102.40.

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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