Clorox (NYSE:CLX) Stock Price Crosses Below Fifty Day Moving Average After Analyst Downgrade

Shares of The Clorox Company (NYSE:CLX) 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 changing hands.

CLX has been the topic of several other research reports. JPMorgan Chase & Co. lowered their price objective on shares of Clorox from $95.00 to $83.00 and set an “underweight” rating on the stock in a research report on Monday, October 19th. TD Cowen cut their price target on Clorox from $85.00 to $80.00 and set a “hold” rating for the company in a report on Tuesday, October 13th. Morgan Stanley reduced their target price on Clorox from $97.00 to $87.00 and set an “equal weight” rating for the company in a report on Thursday, October 15th. Weiss Ratings restated a “hold (c-)” rating on shares of Clorox in a research report on Tuesday, October 6th. Finally, Citigroup cut their price target on shares of Clorox from $97.00 to $90.00 and set a “neutral” rating for the company in a research report on Wednesday, October 14th. Eleven analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Clorox presently has a consensus rating of “Reduce” and an average target price of $93.57.

Key Stories 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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CLX. Pension & Wealth Management Advisors Inc. bought a new stake in Clorox during the third quarter valued at approximately $26,000. Ancora Advisors LLC bought a new stake in shares of Clorox in the 2nd quarter worth about $28,000. Avalon Trust Co purchased a new stake in shares of Clorox during the second quarter valued at $29,000. Markowski Investments purchased a new position in shares of Clorox during the second quarter valued at $30,000. Finally, Barrett & Company Inc. lifted its holdings in Clorox by 86.0% during the third quarter. Barrett & Company Inc. now owns 372 shares of the company’s stock worth $30,000 after buying an additional 172 shares during the period. Institutional investors own 78.53% of the company’s stock.

Clorox Trading Down 0.7%

The firm has a market capitalization of $10.64 billion, a PE ratio of 18.26, a price-to-earnings-growth ratio of 2.97 and a beta of 0.59. The company has a quick ratio of 0.38, a current ratio of 0.66 and a debt-to-equity ratio of 15.80. The company’s 50-day simple moving average is $88.61 and its 200 day simple moving average is $100.01.

Clorox (NYSE:CLX) last posted its quarterly 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. The business had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $1.91 billion. Clorox had a net margin of 8.74% and a return on equity of 522.23%. The business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same quarter last year, the company posted $2.87 earnings per share. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS. As a group, sell-side analysts expect that The Clorox Company will post 5.66 EPS for the current year.

Clorox Announces Dividend

The business also recently declared 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 annualized dividend and a yield of 5.7%. The ex-dividend date is Wednesday, October 28th. Clorox’s dividend payout ratio (DPR) is currently 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.