Clorox (NYSE:CLX) Share Price Breaks Below 50 Day Moving Average on Analyst Downgrade

Key Points

• Clorox shares fell below their 50-day moving average after Zacks Research downgraded the stock from “hold” to “strong sell,” with shares trading near $88.01.
• Analyst sentiment remains cautious: Clorox has a consensus “Reduce” rating, a $93.57 average price target, and several firms have recently lowered their targets or ratings.
• The company faces profitability and dividend concerns despite potential support from product innovation, its GOJO acquisition and a new CEO; its $5.00 annual dividend yields about 5.7%, but the payout ratio exceeds 100%.

Shares of The Clorox Company (NYSE:CLX - Get Free Report) crossed below its 50-day moving average during trading on Friday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock has a 50-day moving average of $88.61 and traded as low as $87.44. Clorox shares last traded at $88.01, with a volume of 3,871,328 shares trading hands.

CLX has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $95.00 target price on shares of Clorox in a report on Monday, October 19th. JPMorgan Chase & Co. lowered their price target on Clorox from $95.00 to $83.00 and set an "underweight" rating for the company in a report on Monday, October 19th. Jefferies Financial Group downgraded Clorox from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $125.00 to $98.00 in a research report on Tuesday, July 28th. Morgan Stanley reduced their price objective on Clorox from $97.00 to $87.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 15th. Finally, Evercore set a $99.00 target price on Clorox in a research report on Tuesday, August 4th. Eleven equities research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $93.57.

Clorox News Summary

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: New CEO appointed: Clorox named Fabian Garcia, a veteran consumer-products executive from Unilever, as CEO and chair effective January 5, 2027. His experience could help strengthen brand execution and support a turnaround after a comprehensive search. Matthew Shattock will resume his role as independent chair, while Linda Rendle is stepping down for health reasons. Clorox Appoints Fabian Garcia as CEO
• Positive Sentiment: Potential earnings support: Analysts expect fiscal first-quarter 2027 results to benefit from product innovation, brand investments and the contribution from GOJO, the hand-care business acquired by Clorox. A stronger-than-expected report could provide a near-term catalyst. Clorox's Q1 Earnings Coming Up: Key Insights for Investors
• Neutral Sentiment: Valuation is being debated: Recent commentary suggests CLX may be fairly valued based on expected earnings, while the incoming CEO could make the stock appear inexpensive if he improves growth and profitability. Investors are likely to focus on guidance and the pace of recovery rather than valuation alone. Clorox Stock Looks About Right Based on Earnings
• Negative Sentiment: Profitability and dividend risks remain: Higher costs, cautious consumer spending and potential pressure on margins may limit the benefit from innovation and GOJO. Analysts also view the dividend as facing a more difficult test, making cash flow and management’s outlook key issues in the earnings release. Clorox: An Easy Quarter Ahead, But a Harder Test for the Dividend

Institutional Investors Weigh In On Clorox

A number of hedge funds and other institutional investors have recently bought and sold shares of CLX. Putney Financial Group LLC acquired a new stake in shares of Clorox during the third quarter valued at about $32,000. First Nebraska Trust Co acquired a new stake in Clorox in the third quarter valued at $4,653,000. Eads & Heald Wealth Management increased its stake in shares of Clorox by 9.5% in the third quarter. Eads & Heald Wealth Management now owns 5,464 shares of the company's stock valued at $443,000 after buying an additional 472 shares during the period. XML Financial LLC increased its position in Clorox by 3.8% during the 3rd quarter. XML Financial LLC now owns 8,475 shares of the company's stock valued at $687,000 after purchasing an additional 310 shares during the period. Finally, Landaas & Co. WI ADV acquired a new stake in shares of Clorox during the third quarter worth $320,000. Institutional investors own 78.53% of the company's stock.

Clorox Stock Performance

The stock has a market capitalization of $10.64 billion, a price-to-earnings ratio of 18.26, a P/E/G ratio of 2.97 and a beta of 0.59. The stock has a fifty day simple moving average of $88.61 and a two-hundred day simple moving average of $100.01. 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 issued its quarterly earnings results on Monday, August 3rd. The company reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.64 by $0.02. The firm had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.91 billion. Clorox had a return on equity of 522.23% and a net margin of 8.74%. The company's revenue was down 2.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.87 earnings per share. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS. Analysts forecast that The Clorox Company will post 5.66 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, November 13th. Shareholders of record on Wednesday, October 28th will be paid a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a yield of 5.7%. The ex-dividend date is Wednesday, October 28th. Clorox's payout ratio is 103.73%.

Clorox Company Profile

The Clorox Company, founded in 1913 and headquartered in Oakland, California, is a consumer and professional products company. It began with household bleach and has expanded into a portfolio of brands serving cleaning, household, personal care, food, and professional markets.

Its brands include Clorox disinfecting and cleaning products, Pine-Sol cleaners, Liquid-Plumr drain care, Kingsford charcoal, Fresh Step and Scoop Away cat litter, Hidden Valley dressings and dips, Brita water filtration products, and Burt's Bees personal care items.

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