Olin Corporation (NYSE:OLN) Sees Large Increase in Short Interest

Key Points

• Olin Corporation experienced a significant increase in short interest in August, rising by 21.9% to a total of 9,410,000 shares, which represents 8.3% of the company's stock.
• The company reported a quarterly EPS of $0.05, missing estimates, while revenue reached $1.76 billion, exceeding expectations by 7.0% year-over-year.
• Olin declared a quarterly dividend of $0.20 per share, with a dividend yield of 3.2%, although the dividend payout ratio remains negative at -666.67%.

Olin Corporation (NYSE:OLN - Get Free Report) was the recipient of a significant growth in short interest in August. As of August 31st, there was short interest totaling 9,410,000 shares, a growth of 21.9% from the August 15th total of 7,720,000 shares. Approximately 8.3% of the shares of the company are sold short. Based on an average daily volume of 2,470,000 shares, the short-interest ratio is currently 3.8 days. Based on an average daily volume of 2,470,000 shares, the short-interest ratio is currently 3.8 days. Approximately 8.3% of the shares of the company are sold short.

Olin Stock Performance

Shares of NYSE:OLN traded down $0.85 during trading on Friday, hitting $24.12. The stock had a trading volume of 3,854,349 shares, compared to its average volume of 2,422,339. The company has a quick ratio of 0.88, a current ratio of 1.48 and a debt-to-equity ratio of 1.50. Olin has a 12-month low of $17.66 and a 12-month high of $49.60. The stock has a 50-day simple moving average of $22.09 and a two-hundred day simple moving average of $21.75. The stock has a market capitalization of $2.77 billion, a price-to-earnings ratio of -201.00 and a beta of 1.61.

Olin (NYSE:OLN - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The specialty chemicals company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.04). The business had revenue of $1.76 billion during the quarter, compared to analyst estimates of $1.68 billion. Olin had a negative net margin of 0.21% and a negative return on equity of 0.13%. The business's revenue for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the company earned $0.62 EPS. On average, equities research analysts expect that Olin will post 1.38 earnings per share for the current fiscal year.

Olin Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 12th. Stockholders of record on Thursday, August 28th were issued a dividend of $0.20 per share. The ex-dividend date was Thursday, August 28th. This represents a $0.80 annualized dividend and a dividend yield of 3.3%. Olin's dividend payout ratio (DPR) is -666.67%.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on OLN shares. KeyCorp reduced their target price on shares of Olin from $32.00 to $31.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Mizuho dropped their target price on shares of Olin from $24.00 to $23.00 and set a "neutral" rating on the stock in a report on Tuesday, July 29th. Citigroup dropped their target price on shares of Olin from $26.00 to $25.00 and set a "buy" rating on the stock in a report on Tuesday, July 8th. Barclays dropped their target price on shares of Olin from $28.00 to $24.00 and set an "equal weight" rating on the stock in a report on Wednesday, May 28th. Finally, UBS Group dropped their target price on shares of Olin from $23.00 to $22.00 and set a "neutral" rating on the stock in a report on Tuesday, July 29th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Olin currently has an average rating of "Hold" and an average target price of $25.57.

Insider Transactions at Olin

In other Olin news, VP Teresa M. Vermillion sold 6,000 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $21.11, for a total value of $126,660.00. Following the completion of the transaction, the vice president directly owned 17,199 shares of the company's stock, valued at approximately $363,070.89. This trade represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Quantinno Capital Management LP boosted its position in shares of Olin by 200.7% during the fourth quarter. Quantinno Capital Management LP now owns 21,923 shares of the specialty chemicals company's stock worth $741,000 after buying an additional 14,632 shares during the period. Tidal Investments LLC acquired a new stake in Olin during the 4th quarter valued at $331,000. Two Sigma Investments LP raised its stake in Olin by 890.4% during the 4th quarter. Two Sigma Investments LP now owns 451,020 shares of the specialty chemicals company's stock valued at $15,244,000 after purchasing an additional 405,480 shares during the period. Two Sigma Advisers LP acquired a new stake in Olin during the 4th quarter valued at $7,514,000. Finally, Voloridge Investment Management LLC acquired a new stake in Olin during the 4th quarter valued at $4,692,000. 88.67% of the stock is owned by hedge funds and other institutional investors.

Olin Company Profile

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents.