Olin (NYSE:OLN) Shares Gap Up - Should You Buy?

Key Points

• Olin Corporation (NYSE:OLN) saw its stock price jump from $20.83 to $21.67 after the market opened, with shares last trading at $21.77 on a volume of 372,642 shares.
• Analysts have varied opinions on Olin, with price target reductions from JPMorgan and Piper Sandler, while Wells Fargo raised its target, reflecting a consensus rating of "Hold" with a target price of $27.20.
• Olin recently reported earnings per share of $0.04, exceeding analyst estimates, with a year-over-year revenue increase of 1.2%, while also announcing a quarterly dividend of $0.20 per share with a yield of 3.72%.

Olin Corporation (NYSE:OLN - Get Free Report) shares gapped up before the market opened on Tuesday . The stock had previously closed at $20.83, but opened at $21.67. Olin shares last traded at $21.77, with a volume of 372,642 shares changing hands.

Analyst Ratings Changes

A number of brokerages have recently issued reports on OLN. Truist Financial cut their target price on Olin from $25.00 to $24.00 and set a "hold" rating for the company in a research note on Monday, May 5th. Mizuho cut their target price on Olin from $24.00 to $23.00 and set a "neutral" rating for the company in a research note on Tuesday. Wall Street Zen raised Olin from a "sell" rating to a "hold" rating in a research note on Saturday. Barclays cut their target price on Olin from $28.00 to $24.00 and set an "equal weight" rating for the company in a research note on Wednesday, May 28th. Finally, Morgan Stanley dropped their price objective on Olin from $28.00 to $20.00 and set an "underweight" rating for the company in a research note on Monday, May 12th. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $25.57.

Olin Stock Down 3.9%

The company has a current ratio of 1.48, a quick ratio of 0.96 and a debt-to-equity ratio of 1.50. The firm has a market capitalization of $2.09 billion, a PE ratio of -151.75 and a beta of 1.55. The firm has a 50-day moving average of $20.60 and a two-hundred day moving average of $23.35.

Olin (NYSE:OLN - Get Free Report) last released its quarterly earnings data 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). Olin had a negative net margin of 0.21% and a negative return on equity of 0.13%. The company had revenue of $1.76 billion during the quarter, compared to analysts' expectations of $1.68 billion. During the same period last year, the business earned $0.62 earnings per share. The company's revenue for the quarter was up 7.0% compared to the same quarter last year. On average, equities research analysts forecast that Olin Corporation will post 1.38 EPS for the current year.

Institutional Trading of Olin

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Fifth Third Bancorp grew its stake in Olin by 160.5% in the first quarter. Fifth Third Bancorp now owns 1,206 shares of the specialty chemicals company's stock worth $29,000 after purchasing an additional 743 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Olin in the first quarter valued at approximately $31,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Olin in the first quarter valued at approximately $32,000. Covestor Ltd boosted its stake in Olin by 45.8% in the fourth quarter. Covestor Ltd now owns 1,334 shares of the specialty chemicals company's stock valued at $45,000 after acquiring an additional 419 shares during the period. Finally, Allworth Financial LP boosted its stake in Olin by 188.5% in the first quarter. Allworth Financial LP now owns 1,676 shares of the specialty chemicals company's stock valued at $37,000 after acquiring an additional 1,095 shares during the period. 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.