Analysts Assign Average Reduce Rating to Clorox with $122.88 Price Target
Nineteen analysts rate Clorox at an average “Reduce”, with four sell, fourteen hold and one buy recommendation and a mean 12-month price target of $122.88. Goldman cut its target to $94 from $110 with a sell call and Citigroup lowered its objective to $109 from $120 on a neutral rating.
1. Analyst Consensus and Price Objectives
Nineteen brokerages currently covering Clorox have assigned an average rating of “Reduce,” reflecting a cautious outlook on the stock. Four analysts recommend selling, fourteen recommend holding, and one issues a buy rating. The average twelve-month price objective among these firms stands at $122.88. Several major banks have recently cut their targets: Goldman Sachs lowered its objective from $110 to $94 and reiterated a sell recommendation; Citigroup trimmed its target from $120 to $109 with a neutral rating; Barclays reduced its forecast from $112 to $108 and maintains an underweight stance; Deutsche Bank moved its target from $128 to $121 with a hold rating; and Wells Fargo cut its price objective from $117 to $108 while assigning equal weight to the stock.
2. Insider and Institutional Activity
Director Pierre R. Breber increased his stake by 4,000 shares on November 21st at an average cost of $104.13 per share, raising his direct ownership to 13,000 shares—a 44.44% increase in his position. This transaction, valued at $416,520, was duly reported to the SEC and brings insider ownership to 0.63% of outstanding shares. On the institutional side, MIRAE ASSET GLOBAL ETFS HOLDINGS raised its position to 13,380 shares (+4.0%) in Q1, valued at approximately $1.97 million; Woodline Partners LP boosted its stake by 253.7% to 10,407 shares ($1.53 million); Focus Partners Wealth added 3,824 shares (+34.4%) for a total of 14,936 shares ($2.20 million); Belpointe Asset Management increased by 6.9% to 3,181 shares ($469,000); and Geneos Wealth Management expanded its position by 70.2% to 2,652 shares ($391,000). Hedge funds and institutional investors now hold 78.53% of the company’s shares.
3. Earnings Performance and Dividend Outlook
In the quarter ended November 3rd, Clorox reported adjusted earnings per share of $0.85, outpacing consensus estimates by $0.07, on revenue of $1.43 billion versus expectations of $1.41 billion. Despite an 18.9% year-over-year revenue decline, the company delivered an 11.68% net margin and a 358.39% return on equity. Full-year guidance calls for earnings between $5.95 and $6.30 per share, compared with analyst projections of $7.15. The firm recently announced a quarterly dividend of $1.24 per share, payable February 13th to shareholders of record January 28th, representing an annualized payout of $4.96 and a yield near 4.7%. The dividend payout ratio stands at 77.86%, supported by healthy free cash flow and a moderate debt load.