Clorox Company (CLX) | News Based Sentiment Analysis

• On October 1, 2025, TD Cowen lowered its price target for Clorox (NYSE:CLX) to $117.00 from $120.00, while maintaining a "Hold" rating. This adjustment came alongside a significant reduction in their fiscal year 2026 EPS forecast to $5.19, falling below the consensus estimate of $6.11, reflecting concerns about service disruptions from their ERP system transition and weakening organic sales.
• Barclays also weighed in on October 1, 2025, decreasing its price target for Clorox to $112.00 from $118.00, while reiterating an "Underweight" rating. This move was attributed to "muted and decelerating" growth in the personal care market observed in recent reports.
• Goldman Sachs Group followed suit on October 2, 2025, lowering its price objective for Clorox to $110.00 from $115.00, while maintaining a "Sell" rating, signaling continued bearish sentiment.
• Despite the analyst downgrades, Clorox announced a quarterly dividend of $1.24 per share on October 2, 2025, payable on November 6th to shareholders of record as of October 22nd. This represents an annualized dividend of $4.96 and a yield of approximately 4.0% to 4.1%, with a payout ratio of 76.07%.
• On October 2, 2025, Clorox's stock price dipped slightly by -0.351%, closing at $122.25, and experienced a -1.51% decline over the preceding ten trading days. However, StockInvest.us upgraded its analysis conclusion from "Sell" to "Hold", citing positive signals while awaiting further developments.
• Institutional investors were also active, with Naples Global Advisors LLC reducing its stake in Clorox by 20.6% during the second quarter, selling 2,655 shares and holding 10,218 shares valued at $1,227,000 as of October 3, 2025.
• Lbp Am Sa drastically reduced its Clorox position by 87.5% in the second quarter, selling 70,811 shares and leaving a holding of 10,113 shares worth $1.2 million, also reported on October 3, 2025.

The Investment Story: October 2025 proved to be a challenging month for Clorox, marked by a series of analyst downgrades and institutional selling, despite maintaining a consistent dividend payout. The ERP transition continues to cast a shadow, impacting financial forecasts and investor confidence.

What It Means for Investors: The downgrades and reduced price targets suggest limited near-term upside for Clorox. While the dividend provides some support, investors should carefully consider the ongoing impact of the ERP system issues and the weakening sales growth before adding to their positions.

Looking Ahead: Investors should closely monitor Clorox's progress in resolving the ERP transition issues and its ability to regain sales momentum in the coming quarters. The next earnings report will be crucial in assessing the company's recovery trajectory.

The Bottom Line: Clorox faces headwinds from operational disruptions and a softening market outlook. While the dividend offers a degree of stability, the negative analyst sentiment and institutional selling suggest caution is warranted until the company demonstrates a clear path to improved performance.