On September 19, 2023, analysts at Wells Fargo & Company adjusted their price target for Clorox (NYSE:CLX), reducing it from $150.00 to $140.00. This update was revealed in a research note on Tuesday, as disclosed by FlyOnTheWall. The revised price objective suggests a possible decline of 1.89% from the previous closing value of the company.
Clorox shares started trading at $142.70 on Tuesday, with a market capitalization of approximately $17.67 billion. The stock holds a price-to-earnings ratio of 119.92, indicating an elevated valuation in relation to its earnings performance. Moreover, the price-to-earnings-growth ratio stands at 2.12, pointing to potential overvaluation considering the company’s growth prospects. Additionally, Clorox possesses a beta of 0.28.
When observing its stock performance over different time frames, it is noteworthy that Clorox has had a fifty-day simple moving average of $155.09 and a two hundred-day simple moving average of $157.93. Furthermore, the company’s share price experienced a range between its twelve-month low of $124.58 and its twelve-month high of $178.21.
In terms of its financial health and liquidity position, Clorox maintains a current ratio of 0.95 and a quick ratio of 0.59, which may indicate potential challenges in meeting short-term financial obligations promptly if they were to arise unexpectedly.The debt-to-equity ratio stands relatively high at 6.38 suggesting heavy reliance on borrowed capital.
Institutional investors have recently made adjustments to their holdings in Clorox stock.Among these institutional investors are Vanguard Group Inc., BlackRock Inc., Geode Capital Management LLC, Stifel Financial Corp, and Northern Trust Corp; all have modified their positions accordingly.Well-established and influential entities such as these have a significant impact on the stock’s performance, given their substantial ownership percentages. As of now, approximately 77.98% of Clorox shares are owned by institutional investors.
Regarding the company’s recent financial activities, Clorox announced its earnings results on Wednesday, August 2nd. For that quarter, it reported an EPS (earnings per share) of $1.67, surpassing the consensus estimate of $1.19 by $0.48. The net margin for Clorox was calculated at 2.02%, while its return on equity stood impressively high at 163.56%. Furthermore, the company generated revenue of $2.02 billion during the quarter, exceeding market expectations set at $1.88 billion. Comparing these figures to the same quarter in the previous year when Clorox posted earnings per share of $0.93 and witnessed a revenue growth rate of 12.1%, one can identify signs of consistent progress.
Sell-side analysts anticipate Clorox to achieve earnings per share of around 5.87 for the current fiscal year, highlighting positive prospects for future financial performance.
In conclusion, despite Wells Fargo & Company lowering their price target for Clorox (NYSE:CLX), it is essential to analyze various aspects supporting an investment decision thoroughly.The market capitalization remains significant at approximately $17.67 billion; however, certain valuation metrics display potential concerns.While institutional investors seem active in adjusting their positions within Clorox stock, one must consider that these entities typically possess extensive knowledge and expertise.Finally,the recent financial results suggest a favorable trend for Clorox with stable revenue growth and surpassing earnings expectations.Nonetheless,it is crucial for investors to conduct thorough research before making any investment decisions,and recognize that analyst predictions are subject to change due to evolving market conditions
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Analyst Ratings and Insider Transactions Provide Insight into Clorox’s Stock
On September 19, 2023, there have been various analysts expressing their opinions on the stock of The Clorox Company (CLX). Among these analysts is DA Davidson, who recently increased their price target from $155.00 to $176.00. In their research report on August 7th, they have also given the company a “neutral” rating.
Another noteworthy analyst is StockNews.com, which upgraded their rating on Clorox shares from “hold” to “buy” in a report on September 8th. This change in rating indicates that the company’s stock has become more attractive as an investment option.
Barclays has also provided its insight on Clorox by increasing their target price from $117.00 to $127.00 and assigning an “underweight” rating in their research report released on August 4th. This low rating suggests that Barclays believes the stock may underperform compared to other investment options.
Lastly, Atlantic Securities revised their rating on Clorox shares from “underweight” to “neutral” in a report published on August 3rd. This upgrade in rating implies that Atlantic Securities believes the stock has reached a satisfactory level and is likely to experience stability in the future.
Overall, a total of six analysts have assigned a sell rating to Clorox’s stock, while another six have issued a hold rating. Only two analysts believe it is worth buying the stock at its current valuation. According to data from Bloomberg, these ratings collectively result in a consensus rating of “Hold” for Clorox shares. Furthermore, the consensus price target for the company stands at $149.62.
In additional news related to The Clorox Company, Chief Financial Officer (CFO) Kevin B. Jacobsen recently sold 3,346 shares of CLX stock in a transaction dated August 14th. The average selling price per share was approximately $160.82, resulting in a total transaction amount of $538,103.72. With this sale, Jacobsen now directly holds 23,224 shares in the company with an estimated value of around $3,734,883.68. The disclosure of this transaction was made through a document filed with the Securities & Exchange Commission and can be accessed through the provided hyperlink. As per the filing, insiders currently own 0.41% of Clorox’s outstanding shares.
The information provided by these analysts’ reports and insider transactions offers valuable insight into the sentiment surrounding Clorox’s stock and allows investors to make more informed decisions based on expert opinions and market trends.
It is important to note that stock markets are complex and unpredictable due to various factors such as economic conditions, regulatory changes, and competitive landscapes. Therefore, conducting thorough research beyond analyst ratings is advisable before making any investment decisions regarding Clorox or any other company’s stock.
