Olin (NYSE:OLN) Trading Down 5.5% - Here's Why

Key Points

• Olin Corporation's shares fell 5.5% to last trade at $24.51, with a significant drop in trading volume of 89% compared to the average daily volume.
• Analysts have recently downgraded Olin's stock, with Citigroup lowering its rating from "buy" to "neutral" and setting a price target at $25.00.
• Olin reported earnings per share of $0.05 for the last quarter, missing estimates, and highlighted a 3.2% dividend yield for shareholders.

Olin Corporation (NYSE:OLN - Get Free Report) shares dropped 5.5% during trading on Tuesday . The company traded as low as $24.75 and last traded at $24.51. Approximately 240,404 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 2,154,760 shares. The stock had previously closed at $25.93.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on OLN shares. Citigroup downgraded shares of Olin from a "buy" rating to a "neutral" rating and set a $25.00 price objective for the company. in a research report on Thursday, October 2nd. Royal Bank Of Canada decreased their price objective on shares of Olin from $25.00 to $23.00 and set a "sector perform" rating for the company in a research note on Thursday, July 3rd. Wells Fargo & Company lifted their target price on Olin from $21.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Weiss Ratings reissued a "sell (d+)" rating on shares of Olin in a research report on Saturday, September 27th. Finally, KeyCorp cut their price target on Olin from $32.00 to $31.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $26.21.

Olin Stock Performance

The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.88 and a current ratio of 1.48. The company has a market capitalization of $2.84 billion, a price-to-earnings ratio of -207.13 and a beta of 1.68. The stock's 50-day moving average price is $22.83 and its 200-day moving average price is $21.72.

Olin (NYSE:OLN - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The specialty chemicals company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.04). The business had revenue of $1.76 billion for the quarter, compared to analysts' expectations of $1.68 billion. Olin had a negative return on equity of 0.13% and a negative net margin of 0.21%.The company's revenue for the quarter was up 7.0% on a year-over-year basis. During the same period last year, the business earned $0.62 earnings per share. As a group, equities research analysts expect that Olin Corporation will post 1.38 earnings per share for the current year.

Olin Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 12th. Shareholders of record on Thursday, August 28th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Thursday, August 28th. Olin's dividend payout ratio is -666.67%.

Insider Activity

In other Olin news, VP Teresa M. Vermillion sold 6,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $21.11, for a total transaction of $126,660.00. Following the transaction, the vice president owned 17,199 shares of the company's stock, valued at $363,070.89. This represents a 25.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Olin

Institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC raised its holdings in shares of Olin by 2,268.4% during the 1st quarter. GAMMA Investing LLC now owns 26,834 shares of the specialty chemicals company's stock valued at $650,000 after buying an additional 25,701 shares during the period. NBC Securities Inc. grew its holdings in Olin by 108,185.7% during the 1st quarter. NBC Securities Inc. now owns 7,580 shares of the specialty chemicals company's stock worth $183,000 after acquiring an additional 7,573 shares in the last quarter. Wedge Capital Management L L P NC increased its position in shares of Olin by 36.8% in the 1st quarter. Wedge Capital Management L L P NC now owns 80,901 shares of the specialty chemicals company's stock worth $1,961,000 after purchasing an additional 21,767 shares during the last quarter. First Citizens Bank & Trust Co. raised its stake in shares of Olin by 48.3% in the 1st quarter. First Citizens Bank & Trust Co. now owns 10,278 shares of the specialty chemicals company's stock valued at $249,000 after purchasing an additional 3,348 shares in the last quarter. Finally, Farther Finance Advisors LLC lifted its position in shares of Olin by 183.8% during the first quarter. Farther Finance Advisors LLC now owns 2,645 shares of the specialty chemicals company's stock worth $63,000 after purchasing an additional 1,713 shares during the last quarter. 88.67% of the stock is currently owned by hedge funds and other institutional investors.

About Olin

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.

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