Clorox Shares Hit All-Time High on Icahn Stake

Shares of Clorox jumped roughly 9 percent Friday after billionaire investor and corporate raider Carl Icahn revealed a 9.08 percent ownership in the stake and said he thinks the stock is undervalued.

Clorox headquarters in Oakland, California
Photo: Joseph Thornton
Clorox headquarters in Oakland, California

"An impressive take in terms of size of the company," Karen Finerman, president of Metropolitan Capital Advisors and CNBC Fast Money contributor said of the stake. "In addition, the company has a non-staggered board which could make them very vulnerable to a bid."

Icahn has a history of pressuring executives and boards of directors to sell their companies, thus driving up share prices.

Icahn did not immediately return a call seeking comment.

Icahn may seek to have conversations with the company's management to discuss its business, according to a filing with the U.S. Securities and Exchange Commission Friday.

In the filing, Icahn said the shares were undervalued given Clorox's focus on big trends and brands that are No. 1 in their categories.

The company, which makes Clorox bleach, Brita water filters and Hidden Valley Ranch salad dressing, has tried to focus its business on growing trends like health and wellness.

But the company posted sharply lower profit in its second quarter, which ended Dec. 31, due to a hefty impairment charge for the Burt's Bees personal care business.

Through Thursday, Clorox shares were up 6.9 percent since the end of June, compared with a 28 percent increase in the Standard & Poor's 500 Index over the same period.

Clorox shares closed up 7.56 percent to end at at $71.26 a share, having earlier hit an all-time high of $72.43 during the session.

Clorox could not be reached for comment.