Canada Pension Plan Investment Board Reduces Holdings in Owens Corning Inc $OC

Key Points

• The Canada Pension Plan Investment Board has reduced its stake in Owens Corning Inc by 63.4%, owning 15,556 shares worth approximately $2.22 million after selling 26,944 shares in Q1.
• Owens Corning reported earnings of $4.21 per share for the latest quarter, exceeding expectations, with year-over-year revenue growth of 10% to $2.75 billion.
• The company has authorized a stock buyback plan allowing for the repurchase of 12 million shares, indicating management's belief that the stock may be undervalued.

Canada Pension Plan Investment Board lowered its holdings in shares of Owens Corning Inc (NYSE:OC - Free Report) by 63.4% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 15,556 shares of the construction company's stock after selling 26,944 shares during the period. Canada Pension Plan Investment Board's holdings in Owens Corning were worth $2,222,000 at the end of the most recent quarter.

A number of other large investors have also bought and sold shares of the stock. Bank Pictet & Cie Europe AG acquired a new stake in Owens Corning in the 4th quarter valued at $28,651,000. BNP Paribas Financial Markets grew its holdings in shares of Owens Corning by 28.7% during the fourth quarter. BNP Paribas Financial Markets now owns 108,348 shares of the construction company's stock valued at $18,454,000 after buying an additional 24,189 shares during the last quarter. Balyasny Asset Management L.P. grew its holdings in shares of Owens Corning by 1,348.4% during the fourth quarter. Balyasny Asset Management L.P. now owns 26,172 shares of the construction company's stock valued at $4,458,000 after buying an additional 24,365 shares during the last quarter. Captrust Financial Advisors grew its holdings in shares of Owens Corning by 51.0% during the fourth quarter. Captrust Financial Advisors now owns 22,828 shares of the construction company's stock valued at $3,888,000 after buying an additional 7,715 shares during the last quarter. Finally, Cetera Investment Advisers boosted its stake in Owens Corning by 21.3% during the 4th quarter. Cetera Investment Advisers now owns 22,449 shares of the construction company's stock valued at $3,823,000 after purchasing an additional 3,935 shares during the last quarter. 88.40% of the stock is currently owned by institutional investors and hedge funds.

Owens Corning Stock Performance

OC traded up $3.05 during trading on Wednesday, hitting $152.17. 220,092 shares of the company traded hands, compared to its average volume of 924,857. The firm has a market cap of $12.73 billion, a P/E ratio of 39.50, a price-to-earnings-growth ratio of 10.99 and a beta of 1.32. The stock's fifty day moving average is $146.85 and its 200 day moving average is $142.68. The company has a quick ratio of 0.95, a current ratio of 1.52 and a debt-to-equity ratio of 0.98. Owens Corning Inc has a one year low of $123.40 and a one year high of $214.53.

Owens Corning (NYSE:OC - Get Free Report) last released its earnings results on Wednesday, August 6th. The construction company reported $4.21 earnings per share for the quarter, beating analysts' consensus estimates of $3.80 by $0.41. The firm had revenue of $2.75 billion for the quarter, compared to analysts' expectations of $2.70 billion. Owens Corning had a net margin of 2.98% and a return on equity of 24.49%. The company's quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the previous year, the company earned $4.64 earnings per share. As a group, equities analysts predict that Owens Corning Inc will post 15.49 EPS for the current fiscal year.

Owens Corning declared that its board has approved a stock repurchase plan on Wednesday, May 14th that permits the company to repurchase 12,000,000 outstanding shares. This repurchase authorization permits the construction company to buy shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

Owens Corning Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 7th. Investors of record on Monday, July 21st were paid a $0.69 dividend. The ex-dividend date was Monday, July 21st. This represents a $2.76 annualized dividend and a yield of 1.8%. Owens Corning's dividend payout ratio is presently 71.69%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on OC. UBS Group cut their price target on Owens Corning from $218.00 to $210.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Barclays lifted their target price on Owens Corning from $167.00 to $173.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Evercore ISI lifted their price objective on shares of Owens Corning from $165.00 to $169.00 and gave the stock an "in-line" rating in a report on Friday, August 8th. Wells Fargo & Company lifted their price objective on shares of Owens Corning from $165.00 to $170.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Finally, Royal Bank Of Canada cut their price objective on shares of Owens Corning from $184.00 to $180.00 and set an "outperform" rating on the stock in a report on Thursday, August 7th. Eight analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, Owens Corning has an average rating of "Moderate Buy" and a consensus target price of $184.60.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications.