How Will Clorox (CLX) Stock Be Affected By The U.S.'s Investigation of Carl Icahn (IEP)?

NEW YORK (TheStreet) -- Shares of The Clorox Co. (CLX) are down about 1.0% after a U.S. insider trading investigation of Carl Icahn's  (IEP) attempt to buy Clorox in 2011 has been hampered by reports tying it and trades in Dean Foods Co. (DF) to golfer Phil Mickelson and sports gambler William Walters, sources told Bloomberg.

Investigators are reviewing large option trades ahead of Icahn's $10.2 billion offer for Clorox, as well as trading by Mickelson and Walters in Dean Foods in 2012, the source said.

None of the three individuals has been accused of any wrongdoing.

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TheStreet Ratings team rates CLOROX CO/DE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CLOROX CO/DE (CLX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, increase in stock price during the past year, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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