CLX Takes a Breather Despite Earnings, Revenue Beat

The firm also named Linda Rendle as its new CEO

Deputy Editor
Aug 3, 2020 at 9:06 AM
facebook twitter linkedin


The shares of Clorox Co (NYSE:CLX) are off 2.8% to trade at $299.99 this morning, even after posting fiscal fourth-quarter earnings and revenue that exceeded analysts' estimates. The firm cited strong sales for its cleaning and disinfecting products. Clorox also announced Linda Rendle as its new CEO, starting Sept. 14. 

This pullback could be the result of some traders taking profits on Clorox stock's impressive rally. In fact, the security grabbed an all-time high of $238 during Friday's session and just came off its ninth-consecutive monthly win. And while CLX is cooling, it's still trading well above its recently supportive 20-day moving average, and boasts a year-to-date lead of over 50%. 

Analysts have yet to chime in, though the sentiment surrounding CLX is relatively cautious. Just three in coverage call it a "strong buy," compared to four "hold" ratings and three "strong sell" ratings. Plus, the 12-month consensus price target of $204.17 is an 11.6% discount to last Friday's close. 

Options players have been a bit more optimistic. In the past 10 weeks, calls have more than doubled puts at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a ratio that sits in the slightly elevated 62nd percentile of its annual range. This suggests a heavier-than-usual appetite for long calls of late. 

Short-term, however, is a different story. Clorox's Schaeffer's put/call open interest ratio (SOIR) of 2.52, which sits higher than 94% of readings from the past year, implies these short-term options traders have rarely been more put-biased. 

 


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners