Clorox (NYSE:CLX) Shares Cross Below 50-Day Moving Average Following Analyst Downgrade

The Clorox Company (NYSE:CLX) passed below its fifty 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 fifty 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 traded.

Other equities analysts have also issued research reports about the stock. Morgan Stanley lowered their price target on shares of Clorox from $97.00 to $87.00 and set an “equal weight” rating for the company in a research report on Thursday, October 15th. Barclays cut their price objective on shares of Clorox from $84.00 to $80.00 and set an “underweight” rating on the stock in a research report on Friday, October 16th. UBS Group set a $91.00 target price on shares of Clorox in a research note on Thursday, October 15th. Evercore set a $99.00 target price on shares of Clorox in a research report on Tuesday, August 4th. Finally, BNP Paribas Exane dropped their price target on shares of Clorox from $97.00 to $95.00 and set a “neutral” rating on the stock in a research note on Monday, July 20th. Eleven analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, Clorox presently has an average rating of “Reduce” and an average target price of $93.57.

Key Headlines Impacting Clorox

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

Hedge Funds Weigh In On Clorox

Several institutional investors and hedge funds have recently modified their holdings of the stock. Pension & Wealth Management Advisors Inc. acquired a new stake in Clorox in the third quarter valued at $26,000. Ancora Advisors LLC acquired a new position in Clorox during the 2nd quarter worth about $28,000. Avalon Trust Co bought a new stake in shares of Clorox in the 2nd quarter valued at about $29,000. Markowski Investments bought a new stake in shares of Clorox in the 2nd quarter valued at about $30,000. Finally, Barrett & Company Inc. increased its stake in shares of Clorox by 86.0% in the third quarter. Barrett & Company Inc. now owns 372 shares of the company’s stock valued at $30,000 after buying an additional 172 shares during the period. 78.53% of the stock is currently owned by hedge funds and other institutional investors.

Clorox Trading Down 0.7%

The company has a market cap of $10.64 billion, a price-to-earnings ratio of 18.26, a PEG ratio of 2.97 and a beta of 0.59. The firm has a 50 day moving average price of $88.61 and a two-hundred day moving average price of $100.01. The company has a quick ratio of 0.38, a current ratio of 0.66 and a debt-to-equity ratio of 15.80.

Clorox (NYSE:CLX) last announced its earnings results on Monday, August 3rd. The company reported $1.66 EPS for the quarter, beating the consensus estimate of $1.64 by $0.02. Clorox had a return on equity of 522.23% and a net margin of 8.74%. The business had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.91 billion. During the same period in the prior year, the business posted $2.87 earnings per share. The firm’s revenue was down 2.0% on a year-over-year basis. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS. As a group, equities analysts forecast that The Clorox Company will post 5.66 earnings per share for the current year.

Clorox Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Wednesday, October 28th will be given a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date is Wednesday, October 28th. Clorox’s payout ratio is presently 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.