Is Clorox Co (CLX) A Good Stock To Buy?

Judging by the fact that Clorox Co (NYSE:CLX) has faced falling interest from the smart money, we can see that there is a sect of money managers that slashed their full holdings last quarter. It’s worth mentioning that Israel Englander’s Millennium Management dumped the largest stake of all the hedgies tracked by Insider Monkey, valued at about $19.9 million in call options. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, worth about $8.2 million. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 1 fund last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Clorox Co (NYSE:CLX) but similarly valued. These stocks are DTE Energy Co (NYSE:DTE), The J.M. Smucker Company (NYSE:SJM), Sasol Limited (ADR) (NYSE:SSL), and Tata Motors Limited (ADR) (NYSE:TTM). This group of stocks’ market valuations are closest to CLX’s market valuation.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $771 million in CLX’s case. The J.M. Smucker Company (NYSE:SJM) is the most popular stock in this table. On the other hand Sasol Limited (ADR) (NYSE:SSL) is the least popular one with only 9 bullish hedge fund positions.Clorox Co (NYSE:CLX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SJM might be a better candidate to consider a long position.

Disclosure: none.