Clorox (NYSE:CLX) Stock Bumped Down to “Strong Sell” by Zacks Research

Zacks Research lowered shares of Clorox (NYSE:CLX) from a hold rating to a strong sell rating in a research report released on Thursday,Zacks reports. Zacks Research also issued estimates for Clorox’s Q1 2027 earnings at $0.91 EPS, Q2 2027 earnings at $1.30 EPS, Q3 2027 earnings at $1.56 EPS, Q4 2027 earnings at $1.77 EPS and FY2027 earnings at $5.53 EPS.

Several other analysts also recently issued reports on CLX. Wall Street Zen downgraded shares of Clorox from a “hold” rating to a “sell” rating in a report on Saturday, October 3rd. Weiss Ratings reiterated a “hold (c-)” rating on shares of Clorox in a research note on Tuesday, October 6th. Jefferies Financial Group downgraded shares of Clorox from a “buy” rating to a “hold” rating and dropped their target price for the stock from $125.00 to $98.00 in a report on Tuesday, July 28th. JPMorgan Chase & Co. cut their target price on shares of Clorox from $95.00 to $83.00 and set an “underweight” rating for the company in a research report on Monday, October 19th. Finally, Wells Fargo & Company decreased their price target on shares of Clorox from $90.00 to $85.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. Eleven equities research 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, the company currently has an average rating of “Reduce” and a consensus target price of $93.57.

Clorox Stock Down 0.7%

CLX opened at $88.01 on Thursday. The business has a 50 day moving average price of $88.61 and a 200 day moving average price of $100.01. Clorox has a twelve month low of $79.12 and a twelve month high of $128.90. The company has a debt-to-equity ratio of 15.80, a quick ratio of 0.38 and a current ratio of 0.66. The firm has a market cap of $10.64 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 2.97 and a beta of 0.59.

Clorox (NYSE:CLX) last announced its earnings results on Monday, August 3rd. The company reported $1.66 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to analysts’ expectations of $1.91 billion. During the same quarter in the prior year, the business earned $2.87 earnings per share. The company’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. Research analysts forecast that Clorox will post 5.66 EPS 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 paid a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 5.7%. The ex-dividend date is Wednesday, October 28th. Clorox’s dividend payout ratio (DPR) is presently 103.73%.

Institutional Investors Weigh In On Clorox

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Clorox in the second quarter valued at approximately $958,640,000. Bank of America Corp DE acquired a new position in shares of Clorox in the 2nd quarter worth approximately $179,780,000. Royal Bank of Canada boosted its holdings in shares of Clorox by 20.1% in the 1st quarter. Royal Bank of Canada now owns 1,418,204 shares of the company’s stock worth $146,969,000 after acquiring an additional 237,301 shares in the last quarter. ProShare Advisors LLC grew its position in Clorox by 6.3% during the 3rd quarter. ProShare Advisors LLC now owns 1,737,891 shares of the company’s stock worth $140,787,000 after acquiring an additional 102,732 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in Clorox by 2.3% during the 1st quarter. Bank of New York Mellon Corp now owns 1,280,226 shares of the company’s stock worth $132,670,000 after acquiring an additional 29,181 shares during the last quarter. 78.53% of the stock is owned by institutional investors and hedge funds.

More Clorox News

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

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.