Clorox: 4 Different Insiders Have Sold Shares During The Last 30 Days

| About: The Clorox (CLX)

Summary

4 insiders sold Clorox stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

2 of these 4 insiders decreased their holdings by more than 10%.

The Clorox Company (NYSE:CLX) manufactures and markets consumer and professional products worldwide.

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Insider selling during the last 30 days

Here is a table of Clorox's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Option Exercise & Sale Rule 10b5-1 Current Ownership Decrease In Ownership
Thomas Johnson VP June 4-9 24,968 Yes & No No 14,431
shares
63.4%
Tully Friedman Director June 4 3,000 Yes No 0 shares 100%
Jon Balousek SVP May 30 119 No No 6,042 shares 1.9%
Thomas Britanik SVP May 19-20 1,779 No No 11,812 shares + 5,930 options 9.1%
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There have been 29,866 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Clorox's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
June 2014 27,968 0
May 2014 23,450 0
April 2014 14,945 0
March 2014 3,908 0
February 2014 4,921 0
January 2014 657 0
December 2013 124,520 0
November 2013 146,749 0
October 2013 40,777 0
September 2013 0 0
August 2013 798 0
July 2013 25,714 0
June 2013 3,475 0
May 2013 67,091 0
April 2013 9,813 0
March 2013 1,030 0
February 2013 146,978 0
January 2013 28,433 0
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There have been 671,227 shares sold and there have been zero shares purchased by insiders since January 2013.

Financials

Clorox reported the fiscal 2014 third-quarter, which ended March 31, financial results on May 1 with the following highlights:

Revenue $1.4 billion
Net income $137 million
Cash $364 million
Debt $2.6 billion
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The four insiders sold their shares after these results.

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(Source: Investor presentation)

Clorox has negative revenue growth currently.

Outlook

Clorox's fiscal 2014 guidance is as follows:

Revenue growth Down slightly
EPS $4.25-$4.35
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(Source: Investor presentation)

Clorox's fiscal 2015 guidance is as follows:

Revenue growth About flat
EPS $4.35-$4.50
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(Source: Investor presentation)

Competition

Clorox's competitors include Colgate-Palmolive (NYSE:CL), and Procter & Gamble (NYSE:PG). Here is a table comparing these companies.

Company CLX CL PG
Market Cap: 11.61B 61.90B 214.77B
Employees: 8,400 37,400 121,000
Qtrly Rev Growth (yoy): -0.02 0.00 -0.00
Revenue: 5.63B 17.43B 84.70B
Gross Margin: 0.43 0.59 0.49
EBITDA: 1.17B 4.58B 19.68B
Operating Margin: 0.18 0.24 0.20
Net Income: 576.00M 2.17B 10.69B
EPS: 4.30 2.32 3.75
P/E: 20.97 29.12 21.16
PEG (5 yr expected): 3.24 2.55 2.27
P/S: 2.06 3.56 2.54
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Clorox has the highest PEG ratio among these three companies.

Here is a table of these competitors' insider activities during the last 30 days.

Company Insider buying / shares Insider selling / shares
CL 0 12,000
PG 0 229,215
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Procter & Gamble has also seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Clorox, and there have not been any insiders buying Clorox during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Clorox has an insider ownership of 0.16%.

There are three analyst buy ratings, eight neutral ratings, and seven sell ratings with an average price target of $87.06. Before going short Clorox, I would like to get a bearish confirmation from the Point & Figure chart. The four main reasons for the proposed short entry are a relatively high PEG ratio, bearish analyst price targets, negative revenue growth, and the intensive insider-selling activity.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.