Owens Corning Inc (NYSE:OC) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Owens Corning Inc has received an average consensus recommendation of "Moderate Buy" from 12 brokerages, with 8 analysts rating the stock as a buy and 4 recommending a hold.
• The company reported earnings per share of $4.21 for the last quarter, surpassing the consensus estimate of $3.80, with revenues reaching $2.75 billion.
• Owens Corning has initiated a share repurchase program allowing for the buyback of 12 million shares, indicating confidence from the board in the stock's value.

Shares of Owens Corning Inc (NYSE:OC - Get Free Report) have been given an average rating of "Moderate Buy" by the twelve brokerages that are presently covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $184.60.

OC has been the topic of a number of recent analyst reports. Wolfe Research raised Owens Corning from a "peer perform" rating to an "outperform" rating in a research note on Friday, May 9th. Barclays boosted their price target on shares of Owens Corning from $167.00 to $173.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Loop Capital reduced their price objective on shares of Owens Corning from $203.00 to $180.00 and set a "buy" rating on the stock in a research note on Thursday, May 8th. Wells Fargo & Company lifted their target price on shares of Owens Corning from $165.00 to $170.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Finally, Evercore ISI boosted their target price on shares of Owens Corning from $165.00 to $169.00 and gave the company an "in-line" rating in a report on Friday, August 8th.

Owens Corning Price Performance

Owens Corning stock opened at $153.57 on Tuesday. The stock has a 50-day moving average price of $143.31 and a two-hundred day moving average price of $144.32. Owens Corning has a 12 month low of $123.40 and a 12 month high of $214.53. The company has a market capitalization of $12.84 billion, a PE ratio of 39.89, a P/E/G ratio of 11.13 and a beta of 1.32. The company has a current ratio of 1.52, a quick ratio of 0.95 and a debt-to-equity ratio of 0.98.

Owens Corning (NYSE:OC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The construction company reported $4.21 earnings per share for the quarter, topping the consensus estimate of $3.80 by $0.41. The company had revenue of $2.75 billion for the quarter, compared to analysts' expectations of $2.70 billion. Owens Corning had a net margin of 2.98% and a return on equity of 24.49%. Owens Corning's revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.64 earnings per share. Analysts expect that Owens Corning will post 15.49 EPS for the current year.

Owens Corning Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 7th. Investors of record on Monday, July 21st were given a dividend of $0.69 per share. The ex-dividend date was Monday, July 21st. This represents a $2.76 annualized dividend and a dividend yield of 1.8%. Owens Corning's dividend payout ratio is presently 71.69%.

Owens Corning declared that its board has initiated a share repurchase program on Wednesday, May 14th that allows the company to buyback 12,000,000 outstanding shares. This buyback authorization allows the construction company to repurchase shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of OC. Pitcairn Co. increased its holdings in shares of Owens Corning by 4.6% during the second quarter. Pitcairn Co. now owns 1,821 shares of the construction company's stock valued at $250,000 after acquiring an additional 80 shares in the last quarter. Nomura Holdings Inc. bought a new stake in Owens Corning during the 2nd quarter valued at $548,000. Kestra Investment Management LLC increased its stake in Owens Corning by 15.7% during the 2nd quarter. Kestra Investment Management LLC now owns 3,292 shares of the construction company's stock valued at $453,000 after purchasing an additional 446 shares in the last quarter. Rexford Capital Inc. acquired a new position in Owens Corning during the second quarter worth $28,000. Finally, FORA Capital LLC bought a new position in shares of Owens Corning in the second quarter valued at $534,000. Institutional investors and hedge funds own 88.40% of the company's stock.

About Owens Corning

Owens Corning manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally. It operates in three segments: Roofing, Insulation, and Composites. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications.

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