Orion (NYSE:OEC) Reaches New 1-Year Low Following Weak Earnings

Key Points

• Orion S.A. has hit a new 52-week low of $9.03 following disappointing earnings that missed analysts' estimates by $0.04 with earnings per share reported at $0.32.
• The company announced an interim dividend of $0.0207 with a yield of 80.0%, indicating a payout ratio of 17.39%.
• Institutional investors are actively modifying their holdings, with Pzena Investment Management increasing its stake in Orion by 37.5% during the 2nd quarter.

Orion S.A. (NYSE:OEC - Get Free Report)'s stock price reached a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $9.03 and last traded at $9.09, with a volume of 710807 shares traded. The stock had previously closed at $9.71.

The specialty chemicals company reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.36 by ($0.04). Orion had a net margin of 0.82% and a return on equity of 16.67%. The business had revenue of $466.40 million during the quarter, compared to the consensus estimate of $475.77 million. During the same quarter last year, the company posted $0.41 EPS. The firm's revenue was down 2.2% on a year-over-year basis.

Orion Dividend Announcement

The company also recently disclosed a interim dividend, which will be paid on Wednesday, October 8th. Shareholders of record on Monday, July 7th will be given a dividend of $0.0207 per share. The ex-dividend date is Monday, July 7th. This represents a yield of 80.0%. Orion's dividend payout ratio (DPR) is presently 29.63%.

Wall Street Analysts Forecast Growth

OEC has been the topic of several recent research reports. Mizuho lowered their price objective on Orion from $12.00 to $10.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 15th. JPMorgan Chase & Co. cut Orion from an "overweight" rating to a "neutral" rating and lowered their price objective for the stock from $18.00 to $12.00 in a research report on Thursday, April 24th. Finally, UBS Group lowered their price objective on Orion from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Thursday, May 8th.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in OEC. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Orion by 3.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 33,857 shares of the specialty chemicals company's stock valued at $438,000 after acquiring an additional 1,097 shares during the last quarter. Inspire Investing LLC grew its position in Orion by 4.9% in the first quarter. Inspire Investing LLC now owns 26,584 shares of the specialty chemicals company's stock valued at $344,000 after acquiring an additional 1,233 shares during the last quarter. MetLife Investment Management LLC grew its position in Orion by 5.9% in the fourth quarter. MetLife Investment Management LLC now owns 35,294 shares of the specialty chemicals company's stock valued at $557,000 after acquiring an additional 1,954 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in Orion by 18.2% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 13,687 shares of the specialty chemicals company's stock valued at $144,000 after acquiring an additional 2,112 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its position in Orion by 30.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 13,108 shares of the specialty chemicals company's stock valued at $169,000 after acquiring an additional 3,046 shares during the last quarter. Institutional investors own 94.33% of the company's stock.

Orion Stock Performance

The company has a debt-to-equity ratio of 1.46, a current ratio of 1.10 and a quick ratio of 0.65. The stock has a 50-day simple moving average of $10.77 and a 200-day simple moving average of $12.05. The stock has a market cap of $593.79 million, a P/E ratio of 39.17 and a beta of 1.10.

About Orion

Orion SA, together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings.