Olin Corporation (NYSE:OLN) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts have a consensus “Reduce” rating on Olin, with four sell, ten hold, one buy and one strong-buy recommendation. The average 12-month price target is $22.62, while several firms recently lowered targets and ratings.
• Olin shares opened at $16.89, near their 12-month low of $16.73, after the company reported a quarterly loss of $0.12 per share and revenue of $1.74 billion, below analyst expectations.
• Institutional investors and hedge funds own 88.67% of Olin’s stock. The company continues to pay a $0.20 quarterly dividend, equivalent to an annualized yield of approximately 4.7%.

Shares of Olin Corporation (NYSE:OLN - Get Free Report) have been given a consensus recommendation of "Reduce" by the sixteen analysts that are covering the stock, MarketBeat.com reports. Four equities research analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation, one has assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $22.6154.

A number of analysts recently issued reports on OLN shares. Wells Fargo & Company restated an "equal weight" rating and set a $20.00 target price (down from $25.00) on shares of Olin in a research report on Monday, August 3rd. Royal Bank Of Canada lowered their target price on shares of Olin from $24.00 to $20.00 and set a "sector perform" rating for the company in a research note on Monday, August 3rd. Weiss Ratings reiterated a "sell (d)" rating on shares of Olin in a report on Wednesday, August 19th. BMO Capital Markets reduced their price target on Olin from $30.00 to $25.00 and set a "market perform" rating on the stock in a research note on Monday, July 6th. Finally, Bank of America cut Olin from a "buy" rating to an "underperform" rating and decreased their price objective for the stock from $32.00 to $21.00 in a report on Tuesday, June 30th.

Institutional Trading of Olin

A number of hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP grew its position in Olin by 22.4% during the first quarter. Dimensional Fund Advisors LP now owns 5,627,997 shares of the specialty chemicals company's stock valued at $167,311,000 after acquiring an additional 1,031,498 shares during the period. Pzena Investment Management LLC raised its holdings in shares of Olin by 17.5% in the 4th quarter. Pzena Investment Management LLC now owns 4,507,913 shares of the specialty chemicals company's stock worth $93,900,000 after purchasing an additional 671,250 shares during the period. California State Teachers Retirement System raised its holdings in shares of Olin by 1,831.5% in the 2nd quarter. California State Teachers Retirement System now owns 2,599,373 shares of the specialty chemicals company's stock worth $51,520,000 after purchasing an additional 2,464,794 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Olin by 1.0% in the 1st quarter. Bank of New York Mellon Corp now owns 1,232,912 shares of the specialty chemicals company's stock valued at $36,654,000 after purchasing an additional 12,290 shares in the last quarter. Finally, First Trust Advisors LP lifted its stake in shares of Olin by 80.8% in the 1st quarter. First Trust Advisors LP now owns 713,041 shares of the specialty chemicals company's stock valued at $21,199,000 after purchasing an additional 318,588 shares in the last quarter. 88.67% of the stock is owned by institutional investors and hedge funds.

Olin Trading Down 1.8%

Shares of OLN stock opened at $16.89 on Tuesday. The company has a market capitalization of $1.92 billion, a price-to-earnings ratio of -13.73 and a beta of 1.20. The company has a current ratio of 1.42, a quick ratio of 0.87 and a debt-to-equity ratio of 1.77. The firm has a 50-day moving average price of $19.46 and a 200 day moving average price of $23.46. Olin has a twelve month low of $16.73 and a twelve month high of $30.46.

Olin (NYSE:OLN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The specialty chemicals company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.25). The firm had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.81 billion. Olin had a negative return on equity of 4.76% and a negative net margin of 2.08%.Olin's revenue for the quarter was down .9% on a year-over-year basis. During the same period in the prior year, the business earned ($0.01) earnings per share. Research analysts forecast that Olin will post -0.68 earnings per share for the current fiscal year.

Olin Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Thursday, August 27th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 4.7%. The ex-dividend date was Thursday, August 27th. Olin's dividend payout ratio is presently -65.04%.

Olin Company Profile

Olin Corporation is a global manufacturer of chemicals and ammunition headquartered in Clayton, Missouri. The company operates through two primary businesses: Chlor Alkali Products and Vinyls and Winchester.

Olin's Chlor Alkali Products and Vinyls business produces essential chemicals including chlorine, caustic soda, hydrogen, hydrochloric acid, bleach products and related chlorinated compounds. These materials are used in water treatment, pulp and paper, construction, plastics, cleaning products and other industrial applications.

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