Palm Valley Fund Rebuys Clorox After Shares Hit a New Low
The fund said it sold after an earlier rally, then bought Clorox back as shares fell, citing sector weakness and elevated leverage.
Key takeaways
- Palm Valley Capital Fund sold and repurchased Clorox during the third quarter.
- The fund attributed the decline mainly to weakness across the consumer sector.
Palm Valley Capital Fund sold and repurchased Clorox during the third quarter of 2026 after the shares fell to a new low, its investor letter said. Clorox was at $81.46 on Monday afternoon, up 1.3% since the previous close.
The fund said it initially sold after the stock rose to its valuation. It bought shares again after they later fell to a new low.
The letter said Clorox’s August results faced comparisons with a year earlier, when customers accelerated purchases ahead of an enterprise resource planning system rollout. The fund said it viewed broader weakness in consumer stocks, rather than company-specific news, as the main reason for the decline.
Palm Valley said Clorox’s leverage was near the upper end of its tolerance, so it sized the position accordingly. The fund also noted that free cash flow largely goes toward a dividend yielding 6.2%.
This article was produced with the help of AI technology. Source: Yahoo Finance
