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

Key Points

• Orion has a consensus “Strong Sell” rating: Four of five covering analysts recommend selling the stock, while one recommends holding it. The average 12-month price target is $5.92, below the reported share price of $6.72.
• Recent earnings fell short of expectations: Orion reported a quarterly loss of $0.11 per share versus the consensus estimate of $0.07 in earnings, although revenue of $459.5 million exceeded expectations.
• Institutional ownership remains high: Institutional investors own 94.33% of the company, with several firms recently increasing their stakes. Orion also declared a quarterly dividend of $0.0207 per share, equivalent to an annualized yield of about 1.2%.

Shares of Orion S.A. (NYSE:OEC - Get Free Report) have been given a consensus rating of "Strong Sell" by the five research firms that are presently covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell rating and one has issued a hold rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $5.9167.

OEC has been the subject of several research analyst reports. Wall Street Zen upgraded shares of Orion from a "sell" rating to a "hold" rating in a research report on Thursday, April 9th. Weiss Ratings restated a "sell (d)" rating on shares of Orion in a research report on Friday, July 17th. Zacks Research lowered shares of Orion from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Finally, UBS Group increased their target price on Orion from $7.00 to $7.50 and gave the company a "neutral" rating in a research note on Friday, May 8th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of OEC. Versant Capital Management Inc raised its stake in shares of Orion by 26.4% during the second quarter. Versant Capital Management Inc now owns 9,925 shares of the specialty chemicals company's stock worth $66,000 after acquiring an additional 2,072 shares in the last quarter. Glenmede Trust Co. NA lifted its stake in Orion by 48.0% in the first quarter. Glenmede Trust Co. NA now owns 16,694 shares of the specialty chemicals company's stock worth $109,000 after purchasing an additional 5,418 shares during the last quarter. Bank of America Corp DE boosted its position in Orion by 91.2% during the first quarter. Bank of America Corp DE now owns 248,838 shares of the specialty chemicals company's stock valued at $1,617,000 after buying an additional 118,711 shares during the period. Royal Bank of Canada boosted its position in Orion by 46.1% during the first quarter. Royal Bank of Canada now owns 139,640 shares of the specialty chemicals company's stock valued at $908,000 after buying an additional 44,029 shares during the period. Finally, Quantinno Capital Management LP grew its stake in shares of Orion by 31.7% during the first quarter. Quantinno Capital Management LP now owns 252,122 shares of the specialty chemicals company's stock valued at $1,639,000 after buying an additional 60,692 shares during the last quarter. 94.33% of the stock is currently owned by institutional investors.

Orion Price Performance

Orion stock opened at $6.72 on Tuesday. The stock has a market cap of $378.72 million, a price-to-earnings ratio of -4.20 and a beta of 1.00. The company has a quick ratio of 0.62, a current ratio of 1.00 and a debt-to-equity ratio of 1.75. The business has a 50-day simple moving average of $6.87 and a 200 day simple moving average of $6.54. Orion has a 52 week low of $4.34 and a 52 week high of $11.47.

Orion (NYSE:OEC - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The specialty chemicals company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.18). Orion had a negative net margin of 4.98% and a positive return on equity of 2.23%. The business had revenue of $459.50 million during the quarter, compared to analysts' expectations of $434.31 million. On average, research analysts forecast that Orion will post 0.1 earnings per share for the current fiscal year.

Orion Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Monday, July 6th will be issued a $0.0207 dividend. This represents a $0.08 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Monday, July 6th. Orion's dividend payout ratio is presently -5.00%.

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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