UBS Group Lowers Owens Corning (NYSE:OC) Price Target to $210.00

Key Points

• UBS Group has reduced its price target for Owens Corning from $218.00 to $210.00, while maintaining a "buy" rating, indicating a potential upside of 42.00% from the stock's current price.
• Owens Corning reported $4.21 earnings per share for the last quarter, exceeding the consensus estimate of $3.80, with revenue rising 10.0% year-over-year to $2.75 billion.
• The company has initiated a share repurchase plan allowing for the buyback of up to 12 million shares, which typically signals management's belief that the stock is undervalued.

Owens Corning (NYSE:OC - Free Report) had its target price reduced by UBS Group from $218.00 to $210.00 in a report published on Thursday morning,Benzinga reports. They currently have a buy rating on the construction company's stock.

Other analysts also recently issued reports about the company. Evercore ISI set a $165.00 target price on Owens Corning in a research report on Thursday, May 15th. Wells Fargo & Company boosted their price objective on Owens Corning from $165.00 to $170.00 and gave the company an "overweight" rating in a research note on Thursday. Loop Capital reduced their target price on shares of Owens Corning from $203.00 to $180.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Wolfe Research upgraded shares of Owens Corning from a "peer perform" rating to an "outperform" rating in a research note on Friday, May 9th. Finally, Barclays raised their price objective on shares of Owens Corning from $167.00 to $173.00 and gave the stock an "overweight" rating in a report on Thursday. Five analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, Owens Corning has a consensus rating of "Moderate Buy" and a consensus price target of $184.60.

Owens Corning Stock Down 2.2%

Shares of NYSE:OC traded down $3.27 during midday trading on Thursday, hitting $143.90. 778,124 shares of the company's stock were exchanged, compared to its average volume of 815,397. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.52 and a quick ratio of 0.93. Owens Corning has a 12 month low of $123.40 and a 12 month high of $214.53. The company has a market cap of $12.03 billion, a PE ratio of 37.38, a price-to-earnings-growth ratio of 3.89 and a beta of 1.32. The stock has a 50 day moving average price of $140.16 and a 200-day moving average price of $147.56.

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

Owens Corning announced that its board has authorized a share buyback plan on Wednesday, May 14th that permits the company to buyback 12,000,000 outstanding shares. This buyback authorization permits the construction company to reacquire shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Owens Corning Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 7th. Stockholders of record on Monday, July 21st were issued a $0.69 dividend. The ex-dividend date of this dividend was Monday, July 21st. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.9%. Owens Corning's dividend payout ratio is presently 71.69%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Bangor Savings Bank bought a new stake in Owens Corning during the 2nd quarter valued at $28,000. Migdal Insurance & Financial Holdings Ltd. purchased a new stake in Owens Corning in the second quarter worth about $30,000. Chilton Capital Management LLC bought a new stake in Owens Corning during the 2nd quarter valued at approximately $37,000. Assetmark Inc. grew its holdings in shares of Owens Corning by 51.0% during the 2nd quarter. Assetmark Inc. now owns 299 shares of the construction company's stock worth $41,000 after acquiring an additional 101 shares during the period. Finally, Ameritas Advisory Services LLC bought a new position in shares of Owens Corning in the 2nd quarter worth approximately $42,000. 88.40% of the stock is currently owned by institutional investors.

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.