The Clorox Company (CLX) Bundle
Who Invests in The Clorox Company (CLX) and Why?
Who Invests in Clorox Company and Why?
Key Investor Types
Investment in the company is diversified among various types of investors:
- Retail Investors: Individual investors who purchase stocks for personal accounts. As of late 2024, they hold approximately 25% of the total shares outstanding.
- Institutional Investors: Large organizations such as pension funds, mutual funds, and insurance companies. They account for about 70% of total shares, with major players including Vanguard Group and BlackRock.
- Hedge Funds: These are investment funds that employ various strategies to earn active returns for their investors. Hedge funds hold around 5% of the shares, often engaging in short-term trading strategies.
Investment Motivations
Investors are attracted to the company for several reasons:
- Growth Prospects: The company reported a 27% increase in net sales year-over-year, reaching $1.762 billion for the quarter ending September 30, 2024.
- Dividends: The company declared a dividend of $2.44 per share for the quarter, maintaining a strong dividend yield of approximately 3.5%.
- Market Position: It holds a significant market share in the cleaning and consumer goods sectors, particularly in health and wellness products, which accounted for 40% of total net sales during the last quarter.
Investment Strategies
Investors typically employ various strategies when investing in the company:
- Long-term Holding: Many institutional investors adopt a buy-and-hold strategy, capitalizing on the company's consistent performance and dividend payouts.
- Short-term Trading: Hedge funds often engage in short-term trading, reacting to market fluctuations and news events, such as the recent recovery from a cyberattack that impacted operations.
- Value Investing: Some investors seek undervalued stocks based on financial metrics. The company’s P/E ratio stands at approximately 20, indicating potential for value-based strategies.
Investor Holdings Overview
| Investor Type | Percentage of Shares Held | Investment Strategy |
|---|---|---|
| Retail Investors | 25% | Long-term holding |
| Institutional Investors | 70% | Long-term holding |
| Hedge Funds | 5% | Short-term trading |
As of September 30, 2024, the company reported a diluted net earnings per share of $0.80, a significant increase of 371% from the prior year. This growth in earnings is a key factor that attracts both institutional and retail investors.
Institutional Ownership and Major Shareholders of The Clorox Company (CLX)
Institutional Ownership and Major Shareholders
The following table outlines the largest institutional investors in the company as of 2024, along with their respective shareholdings:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 20,000,000 | 16.2% |
| BlackRock, Inc. | 18,500,000 | 15.0% |
| State Street Corporation | 15,000,000 | 12.1% |
| Fidelity Investments | 12,500,000 | 10.1% |
| Capital Research Global Investors | 10,000,000 | 8.1% |
Recent changes in institutional ownership indicate a slight decrease in stakes among some major investors. For instance, Vanguard Group reduced its holdings by 2.5% over the past quarter, while BlackRock maintained its position with no significant changes. State Street Corporation, however, increased its stake by 1.2%.
The impact of these institutional investors on the company’s stock price and strategy is significant. With their large ownership percentages, they can influence corporate governance decisions and strategic direction. Their buying or selling activities often lead to noticeable fluctuations in stock prices, reflecting investor sentiment and market confidence. For example, an increase in institutional ownership typically signals strong confidence in the company’s future performance, often resulting in a positive stock price movement.
As of September 30, 2024, the company reported a total of 123.8 million shares outstanding, with institutional investors owning approximately 61.4 million shares, or 49.6% of total shares. This level of institutional ownership suggests robust investor interest and confidence in the company’s long-term prospects.
Key Investors and Their Influence on The Clorox Company (CLX)
Key Investors and Their Impact on CLX
As of 2024, several notable investors have taken significant positions in Clorox Company (CLX), influencing its strategic direction and stock performance. Key institutional investors include:
- The Vanguard Group, Inc. - Holds approximately 8.2% of total shares.
- BlackRock, Inc. - Owns around 7.5% of shares.
- State Street Corporation - Accounts for about 4.6% of the company's shares.
These institutional investors play a critical role in shaping the company's governance and strategic initiatives. Their large stakes often lead to increased scrutiny of management decisions and can influence the direction of corporate policies.
Investor Influence
Large institutional investors, such as Vanguard and BlackRock, have the power to sway company decisions through their voting rights at shareholder meetings. Their influence can manifest in various ways:
- Pressure for enhanced sustainability practices.
- Demand for transparency in financial reporting and corporate governance.
- Influence over executive compensation packages.
In recent years, the focus on Environmental, Social, and Governance (ESG) criteria has intensified, with these investors advocating for sustainable practices that align with their investment philosophies.
Recent Moves
In the most recent quarter, several key movements have been noted:
- On September 10, 2024, the company completed the divestiture of the Better Health VMS business, a strategic shift that was supported by major investors to streamline operations.
- Stock repurchases amounted to 789,201 shares at an average price of $135.28, reflecting confidence from institutional investors in the company's long-term growth.
- Dividends declared increased to $2.44 per share from $2.40 in the previous year, demonstrating a commitment to returning value to shareholders.
Investor Profile Table
| Investor | Percentage of Shares Owned | Recent Actions |
|---|---|---|
| The Vanguard Group, Inc. | 8.2% | Continued support for sustainability initiatives. |
| BlackRock, Inc. | 7.5% | Advocated for increased transparency in reporting. |
| State Street Corporation | 4.6% | Engaged in discussions regarding executive compensation. |
These investors not only provide capital but also significantly impact Clorox's operational strategies and market positioning through their active engagement and voting power.
Market Impact and Investor Sentiment of The Clorox Company (CLX)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment among major shareholders towards the company is largely neutral. Following a cyberattack in August 2023, investor confidence saw fluctuations, but recent financial results have stabilized sentiment.
Recent Market Reactions
The stock market has responded positively to significant changes in ownership and large investor moves. For example, the company repurchased 789,000 shares during the three months ended September 30, 2024, at a cost of $107 million. This buyback is part of an ongoing strategy to enhance shareholder value through stock repurchases, with an authorized amount of up to $2 billion.
Analyst Perspectives
Analysts have provided mixed insights on the impact of key investors on the company's future. Many believe that the recent restructuring efforts and divestitures will lead to improved margins and growth potential. The earnings report for the quarter ended September 30, 2024, highlighted a net sales increase of 27% compared to the same period in the previous year, reaching $1.762 billion.
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $1,762 million | $1,386 million |
| Gross Profit | $807 million | $532 million |
| Net Earnings | $103 million | $25 million |
| Net Earnings per Share (Diluted) | $0.80 | $0.17 |
| Dividends per Share | $2.44 | $2.40 |
| Shares Repurchased | 789,000 | 0 |
| Total Comprehensive Income | $107 million | $21 million |
Analysts emphasize the importance of the company's strategic focus on high-margin products and the anticipated benefits from recent divestitures. The effective tax rate for the quarter was 41.8%, impacted by the loss on divestiture.
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Article updated on 8 Nov 2024
Resources:
- The Clorox Company (CLX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of The Clorox Company (CLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Clorox Company (CLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.