Investors Buy Large Volume of Clorox Call Options (NYSE:CLX)

Key Points

• Unusual options activity: Traders bought 58,784 Clorox call options, an 816% increase over the average volume of 6,420 calls.
• Mixed financial performance: Clorox beat quarterly earnings and revenue estimates, but revenue declined 2% year over year. Shares rose 0.6% to $108.31.
• Dividend raised amid cautious analyst sentiment: Clorox increased its quarterly dividend to $1.25 per share, yielding 4.6%, 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 recipient of some unusual options trading activity on Tuesday. Traders bought 58,784 call options on the company. This is an increase of 816% compared to the average volume of 6,420 call options.

Clorox Trading Up 0.6%

CLX traded up $0.61 during midday trading on Tuesday, hitting $108.31. The company's stock had a trading volume of 2,546,280 shares, compared to its average volume of 2,558,635. Clorox has a 52-week low of $84.70 and a 52-week high of $128.90. The firm has a 50-day moving average price of $96.78 and a two-hundred day moving average price of $103.40. The company has a current ratio of 0.66, a quick ratio of 0.38 and a debt-to-equity ratio of 15.80. The firm has a market cap of $13.10 billion, a P/E ratio of 22.47, a PEG ratio of 3.13 and a beta of 0.54.

Clorox (NYSE:CLX - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $1.66 earnings per share (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 business had revenue of $1.95 billion for the quarter, compared to analysts' expectations of $1.91 billion. During the same period last year, the company earned $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. On average, research analysts anticipate that Clorox will post 5.82 earnings per share for the current year.

Clorox Increases Dividend

The company 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 represents a $5.00 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Wednesday, August 12th. This is a positive change from Clorox's previous quarterly dividend of $1.24. Clorox's payout ratio is currently 103.73%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. BNP Paribas Exane decreased their target price on shares of Clorox from $97.00 to $95.00 and set a "neutral" rating for the company in a research note on Monday, July 20th. Jefferies Financial Group lowered Clorox from a "buy" rating to a "hold" rating and lowered their target price for the company from $125.00 to $98.00 in a report on Tuesday, July 28th. Evercore set a $99.00 price target on Clorox in a research report on Tuesday, August 4th. Wells Fargo & Company lifted their price target on Clorox from $95.00 to $102.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 4th. Finally, The Goldman Sachs Group reiterated a "sell" rating and issued a $83.00 price objective on shares of Clorox in a research report on Friday, May 1st. Twelve investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Clorox has a consensus rating of "Reduce" and an average price target of $102.40.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CLX. Caitlin John LLC grew its holdings in shares of Clorox by 1,807.1% during the 4th quarter. Caitlin John LLC now owns 267 shares of the company's stock worth $27,000 after purchasing an additional 253 shares during the period. Avalon Trust Co purchased a new stake in Clorox during the second quarter worth approximately $29,000. Darwin Wealth Management LLC acquired a new stake in shares of Clorox in the second quarter worth $29,000. Root Financial Partners LLC raised its stake in shares of Clorox by 83.8% in the 1st quarter. Root Financial Partners LLC now owns 318 shares of the company's stock valued at $33,000 after acquiring an additional 145 shares during the period. Finally, SHP Wealth Management acquired a new position in shares of Clorox during the 4th quarter valued at $35,000. Institutional investors and hedge funds own 78.53% of the company's stock.

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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