Orion (NYSE:OEC) Sets New 52-Week Low on Disappointing 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) hit a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $9.03 and last traded at $9.09, with a volume of 710807 shares trading hands. 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 1.44% and a return on equity of 17.66%. During the same period in the previous year, the business posted $0.41 EPS. The business's revenue for the quarter was down 2.2% on a year-over-year basis.

Orion Announces Dividend

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 issued a $0.0207 dividend. The ex-dividend date of this dividend is Monday, July 7th. This represents a yield of 80.0%. Orion's payout ratio is presently 17.39%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on OEC. Mizuho lowered their target price on shares of Orion from $12.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 15th. UBS Group lowered their price target on Orion from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Thursday, May 8th. Finally, JPMorgan Chase & Co. lowered Orion from an "overweight" rating to a "neutral" rating and dropped their price objective for the company from $18.00 to $12.00 in a report on Thursday, April 24th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of OEC. Pzena Investment Management LLC raised its holdings in shares of Orion by 37.5% in the 2nd quarter. Pzena Investment Management LLC now owns 4,577,197 shares of the specialty chemicals company's stock valued at $48,015,000 after buying an additional 1,248,295 shares during the period. Brown Advisory Inc. grew its position in Orion by 0.8% in the 1st quarter. Brown Advisory Inc. now owns 2,638,320 shares of the specialty chemicals company's stock valued at $34,113,000 after acquiring an additional 21,033 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in Orion by 11.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,186,942 shares of the specialty chemicals company's stock worth $34,529,000 after purchasing an additional 233,342 shares during the period. Minneapolis Portfolio Management Group LLC increased its stake in Orion by 1.3% during the first quarter. Minneapolis Portfolio Management Group LLC now owns 1,946,739 shares of the specialty chemicals company's stock worth $25,171,000 after purchasing an additional 24,041 shares during the period. Finally, American Century Companies Inc. lifted its position in shares of Orion by 8.2% during the first quarter. American Century Companies Inc. now owns 1,889,917 shares of the specialty chemicals company's stock worth $24,437,000 after purchasing an additional 142,734 shares in the last quarter. 94.33% of the stock is currently owned by hedge funds and other institutional investors.

Orion Trading Down 6.4%

The company has a debt-to-equity ratio of 1.41, a current ratio of 1.14 and a quick ratio of 0.65. The firm has a market cap of $511.38 million, a PE ratio of 19.76 and a beta of 1.10. The company's 50 day moving average price is $10.82 and its 200 day moving average price is $12.15.

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.

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