Clorox (NYSE:CLX) Rating Lowered to “Sell” at Wall Street Zen

Clorox (NYSE:CLX) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

A number of other research firms have also commented on CLX. Wells Fargo & Company upped their price target on Clorox from $108.00 to $115.00 and gave the company an “equal weight” rating in a research report on Friday. Barclays reaffirmed an “underweight” rating and issued a $109.00 price objective on shares of Clorox in a research note on Friday, January 16th. Rothschild & Co Redburn decreased their target price on shares of Clorox from $120.00 to $115.00 and set a “neutral” rating for the company in a research report on Wednesday, November 5th. Weiss Ratings restated a “hold (c-)” rating on shares of Clorox in a report on Friday, January 9th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $152.00 price objective on shares of Clorox in a research note on Tuesday, November 4th. One investment analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $122.19.

Clorox Trading Up 1.1%

CLX opened at $113.46 on Friday. The company has a debt-to-equity ratio of 18.01, a current ratio of 0.76 and a quick ratio of 0.50. Clorox has a fifty-two week low of $96.66 and a fifty-two week high of $164.22. The company’s 50 day moving average price is $103.80 and its two-hundred day moving average price is $114.86. The firm has a market capitalization of $13.84 billion, a price-to-earnings ratio of 17.81, a PEG ratio of 0.56 and a beta of 0.58.

Clorox (NYSE:CLX) last released its quarterly earnings results on Monday, November 3rd. The company reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.78 by $0.07. Clorox had a net margin of 11.68% and a return on equity of 358.39%. The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same quarter last year, the firm earned $1.86 earnings per share. The company’s revenue for the quarter was down 18.9% on a year-over-year basis. Clorox has set its FY 2026 guidance at 5.950-6.300 EPS. As a group, research analysts predict that Clorox will post 7.15 earnings per share for the current year.

Insider Activity

In other Clorox news, Director Pierre R. Breber purchased 4,000 shares of Clorox stock in a transaction that occurred on Friday, November 21st. The stock was acquired at an average price of $104.13 per share, with a total value of $416,520.00. Following the transaction, the director owned 13,000 shares in the company, valued at $1,353,690. This trade represents a 44.44% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.63% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Invesco Ltd. lifted its position in shares of Clorox by 138.3% during the 2nd quarter. Invesco Ltd. now owns 3,245,175 shares of the company’s stock worth $389,648,000 after buying an additional 1,883,465 shares in the last quarter. Norges Bank purchased a new stake in shares of Clorox during the second quarter valued at approximately $190,429,000. Van ECK Associates Corp lifted its holdings in Clorox by 93.9% during the third quarter. Van ECK Associates Corp now owns 2,709,972 shares of the company’s stock worth $334,139,000 after acquiring an additional 1,312,471 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in Clorox by 218.4% in the second quarter. Arrowstreet Capital Limited Partnership now owns 1,249,127 shares of the company’s stock worth $149,983,000 after purchasing an additional 856,873 shares during the last quarter. Finally, Worldquant Millennium Advisors LLC purchased a new position in Clorox in the second quarter worth $71,856,000. 78.53% of the stock is owned by institutional investors.

Key Headlines Impacting Clorox

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Clorox agreed to acquire GOJO Industries, the maker of Purell, for $2.25 billion in cash — a strategic push deeper into skin health and hygiene that management says is growth‑accretive and advances its IGNITE plan. The deal expands Clorox’s consumer and professional hygiene footprint and is the primary catalyst for today’s stock strength. Clorox Announces Acquisition of GOJO
• Positive Sentiment: Management updated FY‑2026 EPS guidance to $5.95–$6.30, slightly above consensus, and reiterated revenue targets — a sign the company expects the combined portfolio and cost initiatives to help stabilize growth. This guidance helped reassure investors even as organic revenue pressures persist. (Company guidance release)
• Neutral Sentiment: Deutsche Bank raised its price target on CLX to $114 (keeps a Hold rating), a small incremental positive that signals modest upside in analysts’ view but not a strong buy signal. Deutsche Bank Raises Price Target
• Neutral Sentiment: Broad media and analyst coverage (WSJ, CNBC, MarketWatch) has amplified the deal’s reach and provided investors with deal details and management commentary — increasing attention but not resolving long‑term execution questions. WSJ: Clorox to Buy Purell-Maker
• Negative Sentiment: Some sell‑side skepticism remains: Barclays kept an Underweight (sell) stance despite a small target tweak, and commentary from critics highlights valuation and fundamental concerns that could limit upside until integration is proven. Barclays Remains a Sell
• Negative Sentiment: The deal is being financed with debt, increasing leverage and short‑term balance‑sheet risk; investors will watch integration execution and cost synergy realization closely — these risks are why some analysts remain cautious. WSJ: Deal Financed with Debt
• Negative Sentiment: Critical commentary (e.g., Seeking Alpha) questions whether the acquisition meaningfully fixes Clorox’s underlying growth challenges and suggests the company still needs stronger organic execution — a narrative that could cap the stock if results don’t improve. Seeking Alpha: Adding Sanitizers, But In Need Of Getting Its Hands Dirty

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.