Olin (NYSE:OLN) Sets New 1-Year Low - What's Next?

Key Points

• Olin shares hit a new 52-week low, falling 3.7% intraday to about $17.70 and trading well below their 50-day and 200-day moving averages.
• Analyst sentiment is mostly cautious: Olin has an average “Reduce” rating and a consensus price target of $23.08, while several firms recently lowered their targets.
• The company missed quarterly expectations, reporting a $0.12 adjusted loss per share versus estimates for $0.13 in earnings, alongside revenue below forecasts. Olin nevertheless maintained a quarterly dividend of $0.20 per share, implying a 4.5% annualized yield.

Olin Corporation (NYSE:OLN - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $17.73 and last traded at $17.6950, with a volume of 1156764 shares traded. The stock had previously closed at $18.40.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on OLN. JPMorgan Chase & Co. dropped their price target on shares of Olin from $26.00 to $25.00 and set a "neutral" rating for the company in a research note on Thursday, June 18th. Truist Financial reduced their price target on shares of Olin from $24.00 to $20.00 and set a "hold" rating on the stock in a research report on Monday, August 3rd. Morgan Stanley upped their price objective on Olin from $18.00 to $22.00 and gave the company an "underweight" rating in a report on Monday, May 11th. Weiss Ratings reiterated a "sell (d)" rating on shares of Olin in a research report on Wednesday. Finally, BMO Capital Markets cut their target price on Olin from $30.00 to $25.00 and set a "market perform" rating for the company in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, Olin currently has an average rating of "Reduce" and an average price target of $23.08.

Olin Trading Down 3.7%

The business's 50-day simple moving average is $20.76 and its two-hundred day simple moving average is $24.30. The firm has a market capitalization of $2.02 billion, a price-to-earnings ratio of -14.40 and a beta of 1.22. The company has a quick ratio of 0.87, a current ratio of 1.42 and a debt-to-equity ratio of 1.77.

Olin (NYSE:OLN - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The specialty chemicals company reported ($0.12) EPS for the quarter, missing the consensus estimate of $0.13 by ($0.25). The company had revenue of $1.74 billion during 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%.The business's revenue was down .9% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.01) earnings per share. Equities analysts forecast that Olin Corporation will post -0.64 earnings per share for the current year.

Olin Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Thursday, August 27th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.5%. The ex-dividend date is Thursday, August 27th. Olin's dividend payout ratio is -65.04%.

Institutional Investors Weigh In On Olin

Several institutional investors and hedge funds have recently modified their holdings of the company. Rockefeller Capital Management L.P. grew its position in Olin by 115.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,231 shares of the specialty chemicals company's stock valued at $26,000 after acquiring an additional 659 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of Olin in the first quarter valued at approximately $32,000. Sunbelt Securities Inc. acquired a new position in shares of Olin in the first quarter valued at approximately $45,000. UMB Bank n.a. increased its stake in Olin by 34.0% during the 4th quarter. UMB Bank n.a. now owns 2,597 shares of the specialty chemicals company's stock worth $54,000 after buying an additional 659 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in Olin by 45.0% during the 3rd quarter. NewEdge Advisors LLC now owns 2,323 shares of the specialty chemicals company's stock worth $58,000 after buying an additional 721 shares in the last quarter. Hedge funds and other institutional investors own 88.67% of the company's stock.

About Olin

Olin Corporation is a diversified manufacturer specializing in chemical products and ammunition. The company's core business activities encompass the production and distribution of chlor-alkali products, epoxy resins and derivatives, and small-caliber ammunition under the Winchester brand. Olin's chemical operations supply chlorine, caustic soda and related co-products to a wide range of end markets, including water treatment, pulp and paper, pharmaceuticals and general industrial applications.

In its Chlor Alkali Products & Vinyls segment, Olin operates multiple manufacturing facilities that produce chlorine and sodium hydroxide, along with vinyl chloride monomer and polyvinyl chloride (PVC) compounds.

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