Orion S.A. (NYSE:OEC) Receives Consensus Rating of "Strong Sell" from Brokerages

Key Points

• Consensus "Strong Sell": Five analysts covering Orion gave an average rating of "Strong Sell" (four sell, one hold) with an average 1‑year price target of $5.75.
• Latest quarter showed an EPS miss (reported -$0.34 vs. -$0.08 expected) despite revenue beating estimates at $411.7M, and the company has a negative net margin and a negative PE ratio.
• Heavy institutional ownership: Institutions own 94.33% of shares, with several funds dramatically increasing stakes in the fourth quarter (e.g., Quarry LP +430.9%, Performa +690%, Public Employees Retirement System of Ohio +277.5%).

Shares of Orion S.A. (NYSE:OEC - Get Free Report) have been assigned an average rating of "Strong Sell" from the five ratings firms that are covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell recommendation and one has assigned a hold recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $5.75.

Several equities analysts recently commented on the company. Wall Street Zen upgraded Orion from a "sell" rating to a "hold" rating in a research report on Thursday, April 9th. Mizuho upped their price objective on Orion from $4.50 to $5.25 and gave the stock an "underperform" rating in a report on Wednesday, February 18th. UBS Group boosted their target price on Orion from $6.50 to $7.00 and gave the company a "neutral" rating in a research note on Thursday, April 9th. Zacks Research lowered Orion from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 25th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Orion in a research report on Thursday, January 22nd.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Quarry LP grew its stake in shares of Orion by 430.9% in the 4th quarter. Quarry LP now owns 5,861 shares of the specialty chemicals company's stock worth $31,000 after buying an additional 4,757 shares during the last quarter. Performa Ltd US LLC boosted its stake in Orion by 690.0% during the 4th quarter. Performa Ltd US LLC now owns 7,900 shares of the specialty chemicals company's stock valued at $42,000 after purchasing an additional 6,900 shares during the last quarter. ProShare Advisors LLC purchased a new position in shares of Orion in the 4th quarter worth $53,000. Public Employees Retirement System of Ohio boosted its stake in shares of Orion by 277.5% in the 4th quarter. Public Employees Retirement System of Ohio now owns 11,147 shares of the specialty chemicals company's stock worth $59,000 after buying an additional 8,194 shares during the last quarter. Finally, Sequoia Financial Advisors LLC boosted its stake in shares of Orion by 16.4% in the 4th quarter. Sequoia Financial Advisors LLC now owns 12,340 shares of the specialty chemicals company's stock worth $65,000 after buying an additional 1,742 shares during the last quarter. Hedge funds and other institutional investors own 94.33% of the company's stock.

Orion Stock Performance

Shares of OEC opened at $6.96 on Friday. The firm has a market cap of $391.70 million, a PE ratio of -5.52 and a beta of 0.91. Orion has a 1 year low of $4.34 and a 1 year high of $12.84. The company has a debt-to-equity ratio of 1.75, a current ratio of 1.03 and a quick ratio of 0.59. The stock's fifty day moving average price is $5.97 and its two-hundred day moving average price is $5.76.

Orion (NYSE:OEC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The specialty chemicals company reported ($0.34) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.26). The company had revenue of $411.70 million during the quarter, compared to analysts' expectations of $365.79 million. Orion had a negative net margin of 3.88% and a positive return on equity of 6.52%. On average, equities research analysts forecast that Orion will post 1.73 EPS for the current year.

Orion Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th were issued a dividend of $0.0207 per share. The ex-dividend date was Thursday, March 12th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 1.2%. Orion's dividend payout ratio is -6.35%.

Orion Company Profile

Orion Engineered Carbons SA, operating as Orion NYSE: OEC, is a global producer of carbon black, a critical performance additive used to enhance the strength, durability and conductivity of various materials. The company’s products chiefly serve the tire and rubber industry, where carbon black imparts wear resistance and longevity, as well as the plastics, coatings, inks and battery components markets, where specialty grades deliver tailored conductivity and color properties.

Orion’s product portfolio is organized into two core segments: Rubber and Specialty and Chemical Specialties.

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