Owens Corning (NYSE:OC) Trading Up 13% - Still a Buy?

Key Points

• Owens Corning shares jumped 13% in Monday trading, reaching an intraday high of $149.26 and ending at $152.99 on volume that was 25% above average.
• Analysts remain generally positive: the stock carries a “Moderate Buy” consensus with an average price target of $144.82, though several firms recently adjusted targets up or down.
• The company beat Q1 earnings expectations, posting $1.22 EPS vs. $1.01 expected and revenue of $2.27 billion, and it also announced a quarterly dividend of $0.79 per share payable on August 6.

Owens Corning Inc (NYSE:OC - Get Free Report) shares were up 13% during trading on Monday . The company traded as high as $149.26 and last traded at $152.9880. 1,644,973 shares changed hands during trading, an increase of 25% from the average session volume of 1,311,576 shares. The stock had previously closed at $135.39.

Analysts Set New Price Targets

OC has been the topic of a number of analyst reports. Bank of America cut their price target on Owens Corning from $140.00 to $138.00 and set a "buy" rating on the stock in a research note on Monday, April 20th. Royal Bank Of Canada lifted their price objective on Owens Corning from $134.00 to $148.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Barclays upped their price objective on Owens Corning from $135.00 to $144.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Wells Fargo & Company raised their target price on Owens Corning from $135.00 to $150.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Finally, The Goldman Sachs Group boosted their target price on Owens Corning from $125.00 to $141.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $144.82.

Owens Corning Stock Performance

The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.74 and a current ratio of 1.24. The stock's 50-day moving average is $122.08 and its 200 day moving average is $119.11. The firm has a market cap of $12.49 billion, a P/E ratio of -23.50, a PEG ratio of 2.46 and a beta of 1.34.

Owens Corning (NYSE:OC - Get Free Report) last posted its earnings results on Wednesday, May 6th. The construction company reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.21. The firm had revenue of $2.27 billion during the quarter, compared to analysts' expectations of $2.18 billion. Owens Corning had a positive return on equity of 19.86% and a negative net margin of 5.43%.The company's revenue was down 10.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.97 earnings per share. On average, research analysts predict that Owens Corning Inc will post 9.53 earnings per share for the current year.

Owens Corning Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 6th. Stockholders of record on Monday, July 20th will be paid a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Monday, July 20th. Owens Corning's dividend payout ratio (DPR) is currently -47.81%.

Insiders Place Their Bets

In other news, VP Mari Doerfler sold 1,926 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $120.92, for a total value of $232,891.92. Following the sale, the vice president owned 3,093 shares of the company's stock, valued at $374,005.56. The trade was a 38.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Rachel Barthelemy Marcon sold 700 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $120.71, for a total transaction of $84,497.00. Following the transaction, the insider owned 15,848 shares of the company's stock, valued at $1,913,012.08. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Owens Corning

Several hedge funds have recently modified their holdings of OC. Pitcairn Co. raised its holdings in Owens Corning by 4.6% during the second quarter. Pitcairn Co. now owns 1,821 shares of the construction company's stock worth $250,000 after acquiring an additional 80 shares in the last quarter. First Pacific Financial grew its stake in Owens Corning by 2.3% in the first quarter. First Pacific Financial now owns 3,749 shares of the construction company's stock valued at $406,000 after purchasing an additional 85 shares in the last quarter. Viawealth LLC increased its position in shares of Owens Corning by 3.6% during the 4th quarter. Viawealth LLC now owns 2,563 shares of the construction company's stock worth $287,000 after purchasing an additional 88 shares during the last quarter. Fifth Third Wealth Advisors LLC raised its stake in shares of Owens Corning by 2.9% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 3,170 shares of the construction company's stock worth $343,000 after purchasing an additional 90 shares in the last quarter. Finally, Basecamp Wealth Advisors LLC raised its stake in shares of Owens Corning by 3.0% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,317 shares of the construction company's stock worth $359,000 after purchasing an additional 97 shares in the last quarter. Institutional investors own 88.40% of the company's stock.

About Owens Corning

Owens Corning is a global leader in composite materials and building products, with a primary focus on insulation, roofing, and fiberglass composites. The company serves professional contractors, builders and industrial manufacturers by providing solutions designed to improve energy efficiency, structural performance and durability. Its products are used in residential, commercial, and industrial applications worldwide.

The company's core product lines include fiberglass insulation for thermal and acoustic comfort, roofing shingles and underlayment systems engineered for weather protection, and advanced composite materials for markets such as wind energy, automotive, marine and infrastructure.

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