Olin (NYSE:OLN) Shares Down 5.1% - What's Next?

Key Points

• Shares of Olin fell about 5.1% to $27.94 on Tuesday while trading volume was roughly 75% below the stock's average, signaling a sharp move on light liquidity.
• Analysts are mixed: MarketBeat shows an average rating of "Hold" with an average target of $25.64, while recent notes range from Wells Fargo's $35 target to KeyCorp's $26 and UBS/RBC targets near $29–$30.
• Olin reported Q EPS of ($0.58) in line with estimates and revenue of $1.67B (slightly above), pays a $0.20 quarterly dividend (~2.8% yield), but has negative margins/ROE and notable insider selling (CFO sold 92,250 shares).

Shares of Olin Corporation (NYSE:OLN - Get Free Report) were down 5.1% on Tuesday . The stock traded as low as $27.88 and last traded at $27.9420. Approximately 797,901 shares traded hands during trading, a decline of 75% from the average daily volume of 3,218,496 shares. The stock had previously closed at $29.43.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on OLN shares. KeyCorp dropped their target price on Olin from $29.00 to $26.00 and set an "overweight" rating on the stock in a research note on Monday, February 2nd. Royal Bank Of Canada set a $30.00 target price on Olin and gave the stock a "sector perform" rating in a research note on Friday. Wells Fargo & Company raised Olin from an "equal weight" rating to an "overweight" rating and lifted their price target for the stock from $25.00 to $35.00 in a research report on Monday, April 6th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Olin in a research note on Thursday, January 22nd. Finally, UBS Group boosted their price target on Olin from $21.00 to $29.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $25.64.

Olin Stock Down 4.4%

The company has a quick ratio of 0.73, a current ratio of 1.21 and a debt-to-equity ratio of 1.45. The stock has a market cap of $3.20 billion, a PE ratio of -74.01 and a beta of 1.37. The business has a 50 day moving average price of $25.96 and a 200 day moving average price of $23.37.

Olin (NYSE:OLN - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The specialty chemicals company reported ($0.58) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.58). The company had revenue of $1.67 billion during the quarter, compared to analysts' expectations of $1.61 billion. Olin had a negative return on equity of 0.48% and a negative net margin of 0.63%.Olin's quarterly revenue was down .4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.09 EPS. Equities research analysts expect that Olin Corporation will post 1.38 EPS for the current fiscal year.

Olin Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Tuesday, March 3rd were issued a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, March 3rd. This represents a $0.80 dividend on an annualized basis and a yield of 2.8%. Olin's dividend payout ratio is presently -210.53%.

Insider Buying and Selling

In related news, VP R Nichole Sumner sold 4,750 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $22.49, for a total value of $106,827.50. Following the completion of the transaction, the vice president owned 24,771 shares of the company's stock, valued at approximately $557,099.79. This represents a 16.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Todd A. Slater sold 92,250 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $22.48, for a total value of $2,073,780.00. Following the completion of the transaction, the chief financial officer directly owned 44,291 shares of the company's stock, valued at $995,661.68. The trade was a 67.56% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 99,379 shares of company stock valued at $2,238,298. 1.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Olin

A number of hedge funds have recently made changes to their positions in the company. Hotchkis & Wiley Capital Management LLC grew its position in shares of Olin by 5.5% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 12,690,488 shares of the specialty chemicals company's stock valued at $317,135,000 after purchasing an additional 661,730 shares in the last quarter. State Street Corp grew its position in shares of Olin by 1.1% in the second quarter. State Street Corp now owns 4,830,406 shares of the specialty chemicals company's stock valued at $97,043,000 after purchasing an additional 50,309 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Olin by 3.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,596,499 shares of the specialty chemicals company's stock valued at $95,746,000 after purchasing an additional 145,424 shares in the last quarter. Pzena Investment Management LLC grew its position in shares of Olin by 17.5% in the fourth quarter. Pzena Investment Management LLC now owns 4,507,913 shares of the specialty chemicals company's stock valued at $93,900,000 after purchasing an additional 671,250 shares in the last quarter. Finally, Orbis Allan Gray Ltd grew its position in shares of Olin by 448.9% in the fourth quarter. Orbis Allan Gray Ltd now owns 3,804,561 shares of the specialty chemicals company's stock valued at $79,249,000 after purchasing an additional 3,111,393 shares in the last quarter. Institutional investors and hedge funds 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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