Olin (NYSE:OLN) Shares Down 7.7% Following Analyst Downgrade

Key Points

• Olin Corporation's stock price fell by 7.7% after Wells Fargo downgraded the stock's price target from $22.00 to $21.00, maintaining an equal weight rating.
• The company's recent earnings report showed an EPS of $0.05, missing estimates, with revenue up 7.0% year-over-year despite a negative net margin.
• Olin's quarterly dividend of $0.20 per share represents a yield of 3.94%, but the payout ratio is significantly high at 156.86%.

Olin Corporation (NYSE:OLN - Get Free Report) traded down 7.7% during trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $22.00 to $21.00. Wells Fargo & Company currently has an equal weight rating on the stock. Olin traded as low as $20.27 and last traded at $20.21. 342,349 shares traded hands during trading, a decline of 83% from the average session volume of 1,988,265 shares. The stock had previously closed at $21.89.

A number of other analysts also recently issued reports on OLN. Morgan Stanley dropped their target price on shares of Olin from $28.00 to $20.00 and set an "underweight" rating for the company in a research report on Monday, May 12th. Truist Financial dropped their target price on shares of Olin from $25.00 to $24.00 and set a "hold" rating for the company in a research report on Monday, May 5th. UBS Group lowered their price objective on shares of Olin from $23.00 to $22.00 and set a "neutral" rating for the company in a research report on Tuesday. Wall Street Zen downgraded shares of Olin from a "hold" rating to a "sell" rating in a research report on Friday, June 27th. Finally, Piper Sandler lowered their price objective on shares of Olin from $33.00 to $26.00 and set a "neutral" rating for the company in a research report on Monday, April 7th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating and three have given a buy rating to the company. According to data from MarketBeat, Olin currently has a consensus rating of "Hold" and a consensus price target of $25.57.

Hedge Funds Weigh In On Olin

Several large investors have recently added to or reduced their stakes in the company. State of New Jersey Common Pension Fund D lifted its stake in Olin by 32.3% during the second quarter. State of New Jersey Common Pension Fund D now owns 96,438 shares of the specialty chemicals company's stock worth $1,937,000 after purchasing an additional 23,548 shares during the last quarter. AlphaQuest LLC lifted its stake in Olin by 52.0% during the second quarter. AlphaQuest LLC now owns 6,853 shares of the specialty chemicals company's stock worth $138,000 after purchasing an additional 2,343 shares during the last quarter. First Citizens Bank & Trust Co. lifted its stake in Olin by 201.5% during the second quarter. First Citizens Bank & Trust Co. now owns 30,988 shares of the specialty chemicals company's stock worth $623,000 after purchasing an additional 20,710 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Olin during the second quarter worth $1,245,000. Finally, Envestnet Portfolio Solutions Inc. lifted its stake in Olin by 274.3% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 31,866 shares of the specialty chemicals company's stock worth $640,000 after purchasing an additional 23,352 shares during the last quarter. 88.67% of the stock is currently owned by institutional investors.

Olin Price Performance

The company has a quick ratio of 0.96, a current ratio of 1.48 and a debt-to-equity ratio of 1.50. The company has a market capitalization of $2.09 billion, a P/E ratio of -151.75 and a beta of 1.55. The business has a 50 day simple moving average of $20.60 and a 200-day simple moving average of $23.35.

Olin (NYSE:OLN - Get Free Report) last posted its earnings results on Monday, July 28th. The specialty chemicals company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.04). The company had revenue of $1.76 billion during the quarter, compared to the consensus estimate 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 quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.62 earnings per share. Analysts predict that Olin Corporation will post 1.38 EPS for the current fiscal year.

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.