Fundsmith 13F: Cuts The Clorox (CLX) Stake by $34M

London-based investment firm Fundsmith trimmed its stake in The Clorox Company (NYSE:CLX) by 58.07% during the first portion of 2026. According to the fund's latest Form 13F filing with the SEC for the period ended May 15, 2026, the institutional investor parted with 356,280 shares. This transaction left the firm with 257,217 shares of the household consumer products company, valued at approximately $24.55 million at the end of the reporting period.

Fundsmith Shifts Away From Clorox

This sharp reduction stands out because Fundsmith is widely known for its buy-and-hold philosophy, focusing on high-quality defensive businesses. However, the firm has been actively restructuring its portfolio lately. In the same reporting cycle, Fundsmith completely exited its holdings in Graco Inc., and previously closed out positions in Choice Hotels International and Exponent, Inc. The fund also slashed its stakes in Doximity by 58% and Napco Security Technologies by 78.4%. Its move to drop 58.07% of its Clorox holdings, which previously stood at 613,497 shares, aligns with this broader trend of aggressive portfolio pruning. Because 13F filings are backward-looking, they show where the money was on May 15, 2026, and might not match the firm's exact investments right now.

Clorox Stock Performance and Valuation

On Saturday, Clorox shares were priced at $95.44. The stock has experienced some downward pressure, staying near its 50-day moving average of $98.06 and remaining below its 200-day moving average of $102.31. Over the last year, Clorox has seen its stock trade as high as $128.9 and as low as $82.51. With a market capitalization of $10.26 billion, the company currently has a price-to-earnings ratio of 17.65. Looking ahead, the stock has a forward P/E ratio of 13.56.

Recent Earnings and Revenue Metrics

The financial foundation at Clorox has been steady but faces slight headwinds. The company pulled in $6.72 billion in revenue, though its revenue growth dipped by 2%. Clorox posted earnings per share of $4.81, with a net margin of 8.73% and a return on equity of 1.64%. Shareholders and market watchers are looking ahead to Clorox's next quarterly earnings announcement, which is scheduled for November 3, 2026.

Clorox Dividend Yields Over 6%

A core appeal of Clorox has long been its consistent return of capital to shareholders. The company pays an annual dividend rate of $5.00 per share, which translates to a high dividend yield of 6.02% based on recent pricing. This yield is supported by a payout ratio of 103.12%, showing that Clorox is currently paying out slightly more in dividends than its GAAP earnings, a common scenario for mature consumer staples brands during transitional years.

Analysts Set New Price Targets

Wall Street analysts have been adjusting their expectations for Clorox. On October 15, 2026, Morgan Stanley kept an Equal-Weight rating on the stock but lowered its price target to $87.00 from a previous $97.00. Just a day earlier, on October 14, 2026, Citigroup maintained its Neutral rating while dropping its target to $90.00 from $97.00. TD Cowen maintained a Hold rating on October 13, 2026, setting its price target at $80.00 down from $85.00. Wells Fargo kept an Equal-Weight rating on October 5, 2026, adjusting its target to $85.00 from $90.00. Earlier, on September 11, 2026, Citigroup and Wells Fargo set their targets at $97.00 and $90.00 respectively. Going back to August 4, 2026, UBS kept a Neutral rating with a target of $105.00, while JP Morgan maintained an Underweight rating with a target of $95.00. Among 17 analyst opinions, the consensus recommendation is a hold, with a mean price target of $100.76.

Inside the Household Products Giant

Clorox is a staple of grocery shelves worldwide, manufacturing everything from its namesake bleach and Pine-Sol cleaners to Glad trash bags, Kingsford charcoal, Brita water filters, and Burt's Bees natural personal care products. This diverse portfolio of household names has traditionally made Clorox a safe haven during economic uncertainty. However, as major funds like Fundsmith trim their exposure, the market is watching whether these everyday brands can reignite faster revenue growth.

What to Watch at The Clorox Company

As the winter months approach, investors will keep a close eye on Clorox's upcoming earnings report on November 3, 2026, to see if cost-saving measures are helping profitability. Future SEC filings will reveal whether Fundsmith has continued to exit its remaining 257,217 shares or decided to hold its ground.