Exploring The Clorox Company (CLX) Investor Profile: Who’s Buying and Why?

You're looking at The Clorox Company (CLX) and trying to figure out if the recent volatility is a buying opportunity or a warning sign, especially after the stock price dropped from $167.64 in November 2024 to $103.68 by November 2025-a decline of 38.15%. Who is actually holding the bag, and what are the smart money moves? Institutional investors, like Vanguard Group Inc and BlackRock, Inc., own the lion's share, holding around 83.95% of the company, but their actions are mixed; for example, Vanguard Group Inc increased its stake by 2% as of June 2025, holding 15.74 million shares, while BlackRock, Inc. cut its position by 14.64% in July 2025. This divergence is the core of the story, especially as the company reported a massive diluted EPS increase of 190.3% to $6.56 for fiscal year 2025, but also guided for a net sales decline of 6% to 10% in fiscal year 2026 due to the Enterprise Resource Planning (ERP) system transition. So, are the big funds rotating out because of the near-term $0.90 per share ERP headwind, or are they buying the dip on a consumer staple with a 45.2% gross margin? Let's look at the filings to see defintely who is betting on the long-term resilience of brands like Clorox and who is prioritizing the near-term earnings risk.

Who Invests in The Clorox Company (CLX) and Why?

You're looking at The Clorox Company (CLX) because you need to understand who is actually holding the stock and what their endgame is. The direct takeaway is this: CLX is overwhelmingly owned by large institutions who prioritize stability and income, not high-octane growth. It's a defensive play, plain and simple.

As a seasoned financial analyst, I can tell you that the stock's profile is a classic 'sleep-well-at-night' holding for the big money. Institutional investors-think pension funds, mutual funds, and endowments-control roughly 83% of the company's shares as of mid-2025. This means their trading actions carry significant weight, but their long-term, low-volatility mandate keeps the stock grounded. You're defintely not seeing a lot of day traders here.

Key Investor Types: The Big Money Dominance

The ownership breakdown clearly shows who calls the shots. The retail investor, or 'Public Companies and Individual Investors,' holds the smaller slice of the pie, typically around 17%. Insiders-executives and board members-own less than 1%, which is common for a mature, large-cap company like this. Hedge funds, the short-term, aggressive players, generally don't hold a large position because the stock doesn't offer the high volatility they crave.

Here's the quick math on who owns the most. The top holders are the behemoths of the asset management world, and they hold massive stakes for their index and passive funds:

• Vanguard Group: Holds over 16 million shares.
• BlackRock: Holds over 11 million shares.
• State Street Corporation: Holds over 8.2 million shares.

These firms are passive holders; they buy because CLX is in the S&P 500, not because they're chasing a 10x return. They need a solid, non-cyclical anchor for their portfolios.

Investment Motivations: Stability and the Dividend Aristocrat Status

The primary attraction to The Clorox Company is its defensive nature and its legendary dividend. It's a consumer staples stock, meaning its products-like bleach, trash bags, and cat litter-are bought consistently, regardless of a recession. That's stability you can count on.

For income-focused investors, the dividend is the main event. The company has increased its dividend for a remarkable 49 consecutive years, earning it the coveted title of 'Dividend Aristocrat.' As of November 2025, the annual dividend stands at approximately $4.96 per share, giving it a yield around 4.8%. That kind of consistent income stream is gold for pension funds and retirees.

The other motivation is a value-based turnaround. The company's Q3 Fiscal Year 2025 results showed a gross margin improvement to 44.6%, driven by cost savings and pricing power. This signals a recovery from past operational challenges, which attracts value investors who see an undervalued asset. You can read more about the company's long-term focus in its Mission Statement, Vision, & Core Values of The Clorox Company (CLX).

Investment Strategies: Defensive and Long-Term Holding

The strategies employed by the dominant institutional base are low-risk and long-term. They are not trying to trade in and out of the stock every quarter. Their goal is capital preservation and a reliable income stream.

The stock's low Beta (a measure of volatility) of approximately 0.52 as of November 2025 confirms its role as a defensive anchor. This means the stock is about half as volatile as the overall market. When the S&P 500 drops 10%, CLX is statistically expected to drop only about 5.2%. This low volatility is a key feature for risk-averse portfolio managers.

While the overall analyst consensus is a cautious 'Hold' or 'Reduce,' the average price target is still around $125.69. This suggests that even with near-term headwinds-like consumer pressure and competitive activity-the long-term value is seen as higher than the current price. So, the strategy is often:

• Buy for the stable dividend income.
• Hold for the low-volatility, defensive exposure.
• Wait for the margin recovery to close the value gap.

What this estimate hides is that if inflation eases and the company's brand investment (expected to be around 11% of net sales in fiscal 2026) pays off, that price target could be hit faster than expected. The long-term holders are betting on the brands, not the next quarter's earnings beat.

Your next step is to compare this stability to your portfolio's risk tolerance. If you need a defensive, income-generating asset, CLX fits the profile.

Institutional Ownership and Major Shareholders of The Clorox Company (CLX)

If you're looking at The Clorox Company (CLX), you need to know who the major players are because they own the vast majority of the stock. Institutional investors-the mutual funds, pension funds, and asset managers like BlackRock-currently hold a massive stake, sitting around 78.53% of the total shares outstanding. That's a huge concentration of capital, and it means their collective decisions drive the stock price and, defintely, the company's long-term strategy.

The total institutional shares amount to roughly 117.9 million shares. When you see this kind of ownership, you realize no single retail investor can move the needle, but understanding the big money's moves is crucial for your own investment timing. The top 18 shareholders alone control about 51% of the company, giving them significant sway over board decisions, which is why their investment thesis matters so much.

Top Institutional Investors and Their Stakes

The largest institutional holders of The Clorox Company are primarily passive index fund managers, which is typical for a stable consumer staples company. These firms hold shares to mirror a market index, but their sheer size makes them powerful shareholders nonetheless. Here's a quick look at the top five as of the most recent filings (Q3 2025):

You can see right away that Vanguard Group Inc. and BlackRock, Inc. are the titans here, together holding over 26 million shares. This is the kind of ownership structure that screams stability, but it also means that any shift in their passive mandates can create volatility.

Recent Shifts in Institutional Ownership: Buying or Selling?

The story on recent ownership changes is mixed, which tells you there's a real debate happening on Wall Street about CLX's near-term prospects. In the last 12 months, institutional investors bought a total of $4.16 billion worth of shares, but they also sold $2.47 billion. That's a net inflow, which is healthy, but the recent quarter shows some of the biggest holders trimming their positions.

For example, in the third quarter of 2025, while State Street Corp and Invesco Ltd. were adding significantly-Invesco increased its stake by over 23%-the two largest holders, Vanguard and BlackRock, both slightly reduced their positions. The net result for the most recent quarter was a decrease of 2.43% in total institutional shares held long. This suggests a slight cooling of sentiment among some of the largest, most passive funds, even as other active managers see a buying opportunity.

• Buyers outnumbered sellers: 789 institutional buyers versus 593 sellers in the last year.
• Invesco Ltd. was a major buyer, adding 750,415 shares.
• BlackRock, Inc. cut its stake by 1.183%.

The Impact of Large Investors on CLX's Stock and Strategy

Institutional investors are the backbone of The Clorox Company's stock price stability, but they are also a source of risk right now. Their large ownership stake means they have a significant influence on the share price. The stock's one-year loss of about 33% as of November 2025 has hit these large holders hard. So, if the stock price continues its decline, the pressure on these institutions to sell will increase, which can create a downward spiral, hurting individual investors like you.

However, their presence also provides a floor. The fact that the stock is trading at a significant discount-a recent Discounted Cash Flow (DCF) analysis suggested it was undervalued by 42.8%-is a strong signal to long-term, value-focused institutional buyers. These investors are looking past the near-term supply chain challenges and focusing on the underlying cash flow generation, which is expected to climb from $763.8 million to $1.12 billion by 2030. They are buying the long-term story, not the short-term headline.

Their influence on strategy is also direct. With such a large collective stake, they can strongly influence board decisions, especially on capital allocation-things like the dividend policy and major strategic shifts, such as those outlined in the Mission Statement, Vision, & Core Values of The Clorox Company (CLX).

Next Step: Review your portfolio's exposure to CLX and compare your investment horizon to the institutional thesis (short-term pressure vs. long-term value). Owner: You (Individual Investor).

Key Investors and Their Impact on The Clorox Company (CLX)

You want to know who is buying The Clorox Company (CLX) and why, and the short answer is that the stock is overwhelmingly owned by massive, long-term institutional funds. These investors, primarily passive index managers, hold the line for stability and dividend income, not for short-term stock pops.

Institutional investors-think pension funds, mutual funds, and endowments-own a staggering portion of The Clorox Company (CLX), with figures ranging between 78.53% and over 90% of the total stock. This high concentration means that the company's stock movements and long-term strategy are heavily influenced by the decisions of a few giants, even if they aren't actively trying to change the management team.

The Big Three: Vanguard, BlackRock, and State Street

The top shareholders in The Clorox Company (CLX) are the usual suspects in the world of large-cap US equities: Vanguard Group Inc., BlackRock, Inc., and State Street Corp. These are mostly passive investors, meaning they buy and hold the stock because it is part of a major index like the S&P 500. They are not looking to break up the company; they want steady performance and a reliable dividend.

Here's the quick math on their positions as of the third quarter ending September 30, 2025, showing their immense scale:

Notice a slight but important trend: both Vanguard Group Inc. and BlackRock, Inc. slightly trimmed their positions in the third quarter of 2025. This small selling pressure, even from index funds adjusting their portfolios, can contribute to volatility. Still, State Street Corp. and others like Invesco Ltd.-which increased its stake by 23.124% to 3,995,590 shares-offset some of that selling, signaling a mixed but generally stable institutional outlook.

Investor Influence: Stability Over Activism

Because the largest holders are passive index funds, their influence isn't typically seen through hostile takeovers or proxy battles. Instead, their power is exercised through governance and long-term strategic alignment. They are primarily interested in two things: a stable, growing dividend and sound corporate governance, especially around environmental, social, and governance (ESG) factors.

The company's recent moves directly appeal to this investor base:

• Maintaining a strong dividend, which was increased to $1.24 per share quarterly in July 2025.
• Focusing on margin expansion, with a gross margin increase of 220 basis points to 45.2% in fiscal year 2025.
• Committing over $550 million to digital capabilities and data analytics, which promises long-term productivity and supply chain resilience.

These actions reinforce the company's status as a consumer staples stock (a company that makes everyday products that people buy regardless of the economic climate), which is exactly what these large, conservative funds want. They want predictable cash flow, not a high-growth speculation play. You can read more about the foundation they're building in the Mission Statement, Vision, & Core Values of The Clorox Company (CLX).

To be fair, there hasn't been any major activist investor (a Schedule 13D filer) publicly pushing for a shake-up in 2025. The current strategy of cost savings, like the margin transformation program, and innovation, such as the relaunch of Poett's fragrance platform, is largely seen as a necessary recovery from past operational challenges, like the 2023 cyberattack. The big funds are letting management execute this turnaround, but they defintely expect to see the promised long-term EBIT margin expansion of 25 to 50 basis points.

Market Impact and Investor Sentiment

The investor sentiment toward The Clorox Company (CLX) is defintely cautious right now, leaning toward a Neutral to Reduce consensus from major Wall Street firms. You should view this as a period of institutional re-evaluation, not outright panic. Institutional investors-the big money like Vanguard Group Inc. and BlackRock, Inc.-own a substantial portion, accounting for about 78.53% of the stock, but that doesn't mean they're happy about the recent performance.

The average brokerage recommendation currently sits at 3.1 on a scale of 1 (Strong Buy) to 5 (Sell), which is the definition of a 'Hold' rating. Honestly, the market is waiting for the company's operational improvements, particularly the full-scale implementation of its new Enterprise Resource Planning (ERP) system, to translate into tangible financial results. What this estimate hides is the underlying pressure from inflation and consumer shifts, which is why the stock has been underperforming. You need to look past the brand stability and focus on the cost structure.

• Institutional ownership is high, but sentiment is weak.
• The market is discounting future growth due to near-term risks.
• A 'Hold' rating is a signal to wait for clear operational proof.

Recent Market Reactions to Ownership Shifts

The stock price has had a rough year. The Clorox Company's shares declined a significant 38.15% from November 2024 to November 2025, and the recent market response to news has been decidedly negative. For instance, the stock hit a new 52-week low in November 2025, signaling near-term selling pressure. This downward trend is a direct result of mixed earnings and cautious guidance.

When the company released its Q3 earnings in May 2025, net sales decreased 8.1% year-over-year, and the stock price dropped 2.4% in response. That's a clear action-reaction. Also, the high institutional ownership means that when a few major funds trim their positions, the selling pressure is amplified. Insider selling, like the sale of 15,041 shares by a Chief Operating Officer in September 2025 for over $1.86 million, also adds to the bearish signal, even if it's a small fraction of the total shares.

The good news is that the stock's Relative Strength Index (RSI) is around 20.44, suggesting it is technically oversold. A stock this oversold often signals a potential near-term bounce, but you need a catalyst-like a major earnings beat-to sustain it. For a deeper dive into the fundamentals, check out Breaking Down The Clorox Company (CLX) Financial Health: Key Insights for Investors.

Analyst Perspectives and Key Investor Impact

Analyst commentary is the clearest indicator of the underlying risks. The consensus price target from analysts ranges from approximately $125.69 to $136.50, which implies a decent upside from the current trading price around November 2025. But, the trend is what matters: a flurry of target price cuts from firms like Morgan Stanley, Citigroup, and Wells Fargo in late 2025 shows the market is repricing the stock based on a less optimistic near-term outlook.

Here's the quick math on why analysts are cautious: the trailing twelve months (TTM) revenue is about $6.77 billion, and analysts are forecasting a full-year 2026 net sales decline of 6% to 10%. That top-line pressure is significant. Plus, while the analyst consensus for the current year's Earnings Per Share (EPS) is around $7.15, the company's own guidance for fiscal year 2026 is lower, between $5.95 and $6.30 per share. That gap is the risk.

The key investors, like the major index funds, are passive, but their sheer size means their continued holding provides a floor. Their long-term investment thesis hinges on the company successfully executing its cost-saving strategy and leveraging its strong brand portfolio to eventually return to growth. The recent price target reductions are simply the market adjusting to the reality of a slower-than-hoped-for operational turnaround, despite the successful ERP rollout.

So, the action for you is to watch the next quarterly report for a clear sign that the ERP-driven operational efficiencies are not just offsetting short-term disruptions, but actually expanding the gross margin beyond the current 44.34% TTM figure. That's the signal for a sustainable rebound.