Bank of America Has Lowered Expectations for Owens Corning (NYSE:OC) Stock Price

Key Points

• Bank of America cut its price target on Owens Corning to $138 from $140 but kept a "buy" rating, implying roughly a 12.5% upside from the current share price.
• Owens Corning reported weak quarterly results — EPS $1.10 vs. $1.36 expected and revenue down 16.8% year-over-year — leaving a negative net margin (-5.17%) despite a 21.9% return on equity.
• Analyst sentiment is mixed but leans positive, with the stock rated an average of "Moderate Buy" and an average price target of $143.91 (consensus: 1 Strong Buy, 9 Buy, 4 Hold, 2 Sell).

Owens Corning (NYSE:OC - Get Free Report) had its price target reduced by investment analysts at Bank of America from $140.00 to $138.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the construction company's stock. Bank of America's price target indicates a potential upside of 12.52% from the stock's current price.

OC has been the subject of several other reports. Zacks Research lowered Owens Corning from a "hold" rating to a "strong sell" rating in a report on Monday, March 16th. Citigroup reduced their target price on Owens Corning from $137.00 to $135.00 and set a "buy" rating for the company in a report on Thursday, January 8th. Barclays reduced their target price on Owens Corning from $138.00 to $135.00 and set an "overweight" rating for the company in a report on Wednesday, April 8th. Argus upgraded Owens Corning to a "strong-buy" rating in a report on Wednesday, January 14th. Finally, UBS Group boosted their target price on Owens Corning from $160.00 to $172.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $143.91.

Owens Corning Stock Down 0.2%

OC opened at $122.65 on Monday. The business has a 50 day moving average price of $116.28 and a 200 day moving average price of $117.64. Owens Corning has a twelve month low of $97.53 and a twelve month high of $159.42. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.70 and a current ratio of 1.26. The firm has a market cap of $9.86 billion, a P/E ratio of -19.16, a price-to-earnings-growth ratio of 2.11 and a beta of 1.35.

Owens Corning (NYSE:OC - Get Free Report) last posted its earnings results on Wednesday, February 25th. The construction company reported $1.10 earnings per share for the quarter, missing the consensus estimate of $1.36 by ($0.26). Owens Corning had a positive return on equity of 21.93% and a negative net margin of 5.17%.The company had revenue of $2.14 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same quarter last year, the firm posted $3.22 earnings per share. The firm's revenue for the quarter was down 16.8% compared to the same quarter last year. Research analysts forecast that Owens Corning will post 15.49 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of OC. Geneos Wealth Management Inc. increased its position in shares of Owens Corning by 61.7% during the first quarter. Geneos Wealth Management Inc. now owns 482 shares of the construction company's stock valued at $69,000 after purchasing an additional 184 shares during the period. Sivia Capital Partners LLC bought a new stake in shares of Owens Corning during the second quarter valued at approximately $277,000. EverSource Wealth Advisors LLC increased its position in shares of Owens Corning by 1,433.7% during the second quarter. EverSource Wealth Advisors LLC now owns 1,273 shares of the construction company's stock valued at $175,000 after purchasing an additional 1,190 shares during the period. Cerity Partners LLC increased its position in shares of Owens Corning by 294.3% during the second quarter. Cerity Partners LLC now owns 17,372 shares of the construction company's stock valued at $2,389,000 after purchasing an additional 12,966 shares during the period. Finally, Bank of Nova Scotia increased its position in shares of Owens Corning by 12.2% during the second quarter. Bank of Nova Scotia now owns 3,059 shares of the construction company's stock valued at $421,000 after purchasing an additional 333 shares during the period. 88.40% of the stock is currently owned by institutional investors and hedge funds.

About Owens Corning

Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.

The company's core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.

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