Converium Capital Inc. Makes New $2.37 Million Investment in O-I Glass, Inc. $OI

Key Points

• Converium Capital invested approximately $2.37 million in O-I Glass during the first quarter, purchasing 225,000 shares and making the stock its 11th-largest holding at about 1.5% of the portfolio.
• O-I Glass reported weak second-quarter results, with adjusted EPS of $0.09 versus the $0.24 consensus and revenue down 2.2% year over year to $1.67 billion. An $873 million goodwill impairment, reduced full-year guidance and high leverage have increased concerns about the company’s European operations and balance sheet.
• Analyst sentiment remains mixed, with four Buy, three Hold and two Sell ratings and an average price target of $10.56. Shares opened at $7.17, near their 52-week low of $7.01, while several analysts recently lowered their targets.

Converium Capital Inc. bought a new position in shares of O-I Glass, Inc. (NYSE:OI - Free Report) in the 1st quarter, according to its most recent 13F filing with the SEC. The fund bought 225,000 shares of the industrial products company's stock, valued at approximately $2,365,000. O-I Glass accounts for approximately 1.5% of Converium Capital Inc.'s holdings, making the stock its 11th biggest holding. Converium Capital Inc. owned about 0.15% of O-I Glass at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of OI. PNC Financial Services Group Inc. raised its position in shares of O-I Glass by 1.9% in the 4th quarter. PNC Financial Services Group Inc. now owns 37,828 shares of the industrial products company's stock valued at $558,000 after acquiring an additional 701 shares during the period. Barclays PLC boosted its stake in O-I Glass by 0.3% during the 4th quarter. Barclays PLC now owns 246,766 shares of the industrial products company's stock worth $3,642,000 after acquiring an additional 755 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in O-I Glass by 87.6% during the fourth quarter. Farther Finance Advisors LLC now owns 1,778 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 830 shares during the period. ProShare Advisors LLC grew its holdings in O-I Glass by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 29,887 shares of the industrial products company's stock valued at $441,000 after purchasing an additional 911 shares during the period. Finally, Smartleaf Asset Management LLC increased its stake in O-I Glass by 64.1% in the second quarter. Smartleaf Asset Management LLC now owns 2,350 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 918 shares in the last quarter. 97.24% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on OI shares. Citigroup cut their target price on shares of O-I Glass from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Friday. Robert W. Baird set a $13.00 price target on shares of O-I Glass in a report on Thursday. Wells Fargo & Company lowered their price objective on shares of O-I Glass from $13.00 to $12.00 and set an "overweight" rating for the company in a research report on Wednesday, July 15th. Zacks Research raised O-I Glass from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Royal Bank Of Canada reduced their target price on O-I Glass from $14.00 to $11.00 and set an "outperform" rating on the stock in a report on Thursday, July 9th. Four 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 MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $10.56.

Key Stories Impacting O-I Glass

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

• Positive Sentiment: Analysts remain constructive on O-I Glass’s longer-term valuation. UBS maintained a “buy” rating with an $11 price target, while Truist also kept a “buy” rating with a $10 target—representing substantial potential upside from recent levels. O-I Glass Price Target Lowered to $11.00 at UBS Group
• Positive Sentiment: Zacks cited solid end-market demand and innovation-focused product development as potential growth drivers for the glass-products industry, which could benefit O-I Glass over time. 2 Glass Products Stocks to Watch in a Promising Industry
• Neutral Sentiment: Citigroup lowered its price target from $10 to $8 and moved to a “neutral” rating. Although the revised target still implies upside, the reduction reflects more cautious expectations following the earnings update. Citigroup O-I Glass Price Target Update
• Negative Sentiment: Second-quarter adjusted earnings were $0.09 per share, below the $0.24 consensus estimate and down from $0.53 a year earlier. Revenue of $1.67 billion also slightly missed estimates and fell 2.2% year over year, with weakness in Europe contributing to the shortfall. O-I Glass Shares Sink After Europe Weakness Drives Earnings Miss
• Negative Sentiment: An $873 million goodwill impairment produced a large second-quarter net loss and intensified concerns about the company’s European operations and balance sheet, which already carries high leverage. O-I Glass Is Down After Goodwill Impairment Triggers Large Q2 Net Loss
• Negative Sentiment: O-I Glass cut full-year guidance for the second consecutive quarter, raising worries about execution and near-term cash flow. The guidance reduction has also prompted an investor investigation notice, adding legal and reputational risk. O-I Glass Investigation Notice

O-I Glass Price Performance

NYSE OI opened at $7.17 on Friday. The business has a 50 day simple moving average of $8.98 and a 200 day simple moving average of $11.05. O-I Glass, Inc. has a 52-week low of $7.01 and a 52-week high of $16.91. The company has a debt-to-equity ratio of 8.89, a quick ratio of 0.73 and a current ratio of 1.26. The stock has a market cap of $1.10 billion, a price-to-earnings ratio of -0.95, a PEG ratio of 0.89 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 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.15). O-I Glass had a negative net margin of 18.13% and a positive return on equity of 10.40%. The company had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same period in the previous year, the firm posted $0.53 EPS. The business's quarterly revenue was down 2.2% compared to the same quarter last year. Analysts anticipate that O-I Glass, Inc. will post 1.14 earnings per share for the current fiscal year.

Insider Transactions at O-I Glass

In related news, SVP Darrow A. Abrahams acquired 2,774 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average cost of $9.04 per share, with a total value of $25,076.96. Following the transaction, the senior vice president owned 235,928 shares of the company's stock, valued at $2,132,789.12. The trade was a 1.19% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Randolph L. Burns bought 11,000 shares of the stock in a transaction on 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 acquisition, the senior vice president owned 133,932 shares in the company, valued at approximately $1,248,246.24. This represents a 8.95% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 17,083 shares of company stock valued at $157,312 over the last quarter. Corporate insiders own 1.00% of the company's stock.

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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