Citigroup Has Lowered Expectations for O-I Glass (NYSE:OI) Stock Price

Key Points

• Citigroup lowered O-I Glass’s price target from $10 to $8 while maintaining a “neutral” rating. The new target implies roughly 11.65% upside from the stock’s $7.17 price, while the analyst consensus remains “Hold” with a $10.56 target.
• O-I Glass reported adjusted EPS of $0.09, missing the $0.24 consensus, as revenue fell 2.2% year over year to $1.67 billion. An approximately $873 million goodwill impairment, European weakness and reduced full-year guidance added to investor concerns.
• The stock fell 2.5% and was near its one-year low, with a heavily leveraged balance sheet and negative net margin. Despite the risks, insiders bought shares recently and some analysts continue to see value, with four Buy ratings versus three Holds and two Sells.

O-I Glass (NYSE:OI - Get Free Report) had its target price lowered by equities research analysts at Citigroup from $10.00 to $8.00 in a report issued on Friday,Benzinga reports. The firm presently has a "neutral" rating on the industrial products company's stock. Citigroup's price target would suggest a potential upside of 11.65% from the stock's current price.

A number of other research firms have also commented on OI. Weiss Ratings upgraded shares of O-I Glass from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 15th. Bank of America reissued an "underperform" rating and issued a $11.00 price target on shares of O-I Glass in a report on Tuesday, July 14th. Robert W. Baird set a $13.00 price objective on shares of O-I Glass in a research note on Thursday. Truist Financial dropped their target price on shares of O-I Glass from $13.00 to $10.00 and set a "buy" rating for the company in a report on Thursday. Finally, Wells Fargo & Company cut their target price on O-I Glass from $13.00 to $12.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 15th. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, O-I Glass currently has a consensus rating of "Hold" and a consensus target price of $10.56.

O-I Glass Trading Down 2.5%

OI stock traded down $0.18 during trading on Friday, hitting $7.17. 2,708,578 shares of the company traded hands, compared to its average volume of 2,670,118. The company has a 50-day moving average of $9.01 and a 200-day moving average of $11.08. The company has a debt-to-equity ratio of 8.89, a quick ratio of 0.73 and a current ratio of 1.26. O-I Glass has a 1 year low of $7.01 and a 1 year high of $16.91. The firm has a market capitalization of $1.10 billion, a PE ratio of -0.95, a P/E/G ratio of 0.93 and a beta of 0.62.

O-I Glass (NYSE:OI - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $0.09 EPS for the quarter, missing analysts' consensus estimates of $0.24 by ($0.15). O-I Glass had a positive return on equity of 10.40% and a negative net margin of 18.13%.The company had revenue of $1.67 billion during the quarter, compared to analysts' expectations of $1.68 billion. During the same period last year, the firm earned $0.53 earnings per share. O-I Glass's revenue for the quarter was down 2.2% on a year-over-year basis. Analysts predict that O-I Glass will post 1.14 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Randolph L. Burns bought 11,000 shares of the business's stock in a transaction dated Friday, May 8th. The shares were purchased at an average price of $9.32 per share, with a total value of $102,520.00. Following the purchase, the senior vice president owned 133,932 shares of the company's stock, valued at approximately $1,248,246.24. This trade represents a 8.95% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Eduardo Restrepo purchased 3,309 shares of O-I Glass stock in a transaction that occurred on Thursday, May 14th. The shares were bought at an average price of $8.98 per share, for a total transaction of $29,714.82. Following the transaction, the senior vice president directly owned 94,199 shares of the company's stock, valued at $845,907.02. This trade represents a 3.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders purchased 17,083 shares of company stock worth $157,312. 1.00% of the stock is currently owned by corporate insiders.

Institutional Trading of O-I Glass

Several institutional investors and hedge funds have recently bought and sold shares of OI. Farther Finance Advisors LLC grew its holdings in shares of O-I Glass by 87.6% during the 4th quarter. Farther Finance Advisors LLC now owns 1,778 shares of the industrial products company's stock worth $26,000 after acquiring an additional 830 shares during the period. Optiver Holding B.V. boosted its position in shares of O-I Glass by 491.5% during the first quarter. Optiver Holding B.V. now owns 2,496 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 2,074 shares in the last quarter. Headlands Technologies LLC bought a new stake in shares of O-I Glass during the second quarter valued at approximately $29,000. Quarry LP purchased a new stake in O-I Glass in the fourth quarter worth $32,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in O-I Glass by 36,533.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,198 shares of the industrial products company's stock worth $32,000 after purchasing an additional 2,192 shares during the period. 97.24% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting O-I Glass

Here are the key news stories impacting O-I Glass this week:

• Positive Sentiment: UBS and Truist retained Buy ratings, with price targets of $11 and $10, respectively. Those targets suggest substantial potential upside from recent trading levels, although both firms reduced their targets. UBS price target article
• Positive Sentiment: Industry commentary points to solid end-market demand and new glass-product development as potential growth drivers for O-I Glass and peers. Glass products industry outlook
• Neutral Sentiment: Some analysts remain bullish on O-I Glass following its sharp decline, arguing the stock trades at a discounted valuation. However, the positive view depends on a recovery in operating performance and execution of the company’s strategy. Analyst bullishness article
• Negative Sentiment: O-I Glass recorded an approximately $873 million goodwill impairment, contributing to a significant second-quarter net loss. Adjusted EPS was $0.09, below the $0.24 consensus estimate, while revenue declined 2.2% year over year to $1.67 billion. O-I Glass goodwill impairment article
• Negative Sentiment: Weakness in Europe drove the earnings miss, and the company cut full-year guidance for the second consecutive quarter, raising concerns about demand and execution. O-I Glass European weakness article
• Negative Sentiment: The stock reached a new one-year low following the weak results, while UBS and Truist lowered their price targets despite maintaining Buy ratings. A pending investor investigation adds another layer of uncertainty. O-I Glass one-year low article

O-I Glass Company Profile

O-I Glass, Inc is a leading global manufacturer of glass containers, supplying the food and beverage, wine and spirits, pharmaceutical, cosmetic and personal care industries. Headquartered in Perrysburg, Ohio, the company produces a broad range of glass packaging solutions, including bottles and jars, designed to meet customer specifications for size, shape, color and performance. O-I leverages proprietary technologies in forming, decoration and quality control to serve both mass-market and premium brands.

Tracing its origins to the early 20th century through the merger of prominent regional glassmakers, the company adopted the Owens-Illinois name in 1929 before rebranding as O-I Glass in 2015.

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