Olin (NYSE:OLN) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Technical breakout: Olin shares passed above their 200‑day moving average ($23.50), trading as high as $27.48 and last at $26.85 on volume of about 1.52 million shares.
• Mixed analyst view but consensus Hold: The stock carries a MarketBeat consensus rating of "Hold" with an average price target of $25.93, while brokers have issued mixed moves (Citi and RBC raised targets toward $30, Mizuho nudged its target higher, and Truist cut its target to $20).
• Financials are mixed: the company reported ($0.58) EPS for the quarter (matching estimates) and $1.67B in revenue (above estimates), pays a $0.20 quarterly dividend (about a 3.0% yield), but shows negative margins and has seen notable insider selling (~99K shares over three months).

Shares of Olin Corporation (NYSE:OLN - Get Free Report) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $23.50 and traded as high as $27.48. Olin shares last traded at $26.8520, with a volume of 1,523,298 shares traded.

Analyst Ratings Changes

A number of brokerages have recently weighed in on OLN. Mizuho lifted their price objective on Olin from $24.00 to $26.00 and gave the stock a "neutral" rating in a research report on Tuesday, March 31st. Royal Bank Of Canada set a $30.00 price objective on Olin and gave the stock a "sector perform" rating in a research report on Friday, April 10th. Truist Financial cut their price objective on Olin from $23.00 to $20.00 and set a "hold" rating on the stock in a research report on Monday, February 2nd. Citigroup lifted their price objective on Olin from $26.00 to $30.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Olin in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Olin presently has a consensus rating of "Hold" and an average price target of $25.93.

Olin Stock Up 0.3%

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 company has a fifty day simple moving average of $26.35 and a 200 day simple moving average of $23.50. The firm has a market capitalization of $3.06 billion, a P/E ratio of -70.66 and a beta of 1.37.

Olin (NYSE:OLN - Get Free Report) last released its earnings results on Thursday, January 29th. The specialty chemicals company reported ($0.58) EPS for the quarter, hitting the consensus estimate of ($0.58). Olin had a negative return on equity of 0.48% and a negative net margin of 0.63%.The business had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.61 billion. During the same period in the previous year, the company posted $0.09 earnings per share. The company's revenue for the quarter was down .4% compared to the same quarter last year. On average, equities analysts expect that Olin Corporation will post -0.9 EPS for the current fiscal year.

Olin Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 13th. Shareholders of record on Tuesday, March 3rd were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Tuesday, March 3rd. Olin's payout ratio is -210.53%.

Insiders Place Their Bets

In other Olin news, VP R Nichole Sumner sold 4,750 shares of the business's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $22.49, for a total value of $106,827.50. Following the sale, the vice president directly owned 24,771 shares of the company's stock, valued at approximately $557,099.79. The trade was a 16.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Todd A. Slater sold 92,250 shares of the business's stock in a transaction on 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 sale, the chief financial officer directly owned 44,291 shares in the company, valued at $995,661.68. This trade represents a 67.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 99,379 shares of company stock valued at $2,238,298. 1.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Olin

Several hedge funds have recently added to or reduced their stakes in the stock. Choreo LLC purchased a new position in shares of Olin in the third quarter worth $726,000. Thrivent Financial for Lutherans raised its stake in shares of Olin by 6.9% in the third quarter. Thrivent Financial for Lutherans now owns 1,639,624 shares of the specialty chemicals company's stock worth $40,974,000 after purchasing an additional 105,484 shares during the last quarter. Invenomic Capital Management LP purchased a new position in shares of Olin in the third quarter worth $5,761,000. SG Americas Securities LLC boosted its holdings in Olin by 142.0% in the fourth quarter. SG Americas Securities LLC now owns 455,757 shares of the specialty chemicals company's stock worth $9,493,000 after purchasing an additional 267,458 shares during the last quarter. Finally, Harbor Capital Advisors Inc. boosted its holdings in Olin by 39.4% in the fourth quarter. Harbor Capital Advisors Inc. now owns 132,013 shares of the specialty chemicals company's stock worth $2,750,000 after purchasing an additional 37,289 shares during the last quarter. 88.67% of the stock is owned by institutional investors.

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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