Olin (NYSE:OLN) Sets New 1-Year Low - Time to Sell?

Key Points

• Olin shares fell to a new 52-week low of $16.68, well below their 50-day and 200-day moving averages of $19.46 and $23.46, respectively.
• Analyst sentiment has weakened, with multiple firms cutting price targets and Citigroup downgrading the stock to “underperform.” Olin has an average “Reduce” rating and a consensus price target of $22.62.
• The company missed quarterly earnings and revenue estimates, reporting a loss of $0.12 per share, while analysts expect a full-year loss of $0.68 per share. Olin continues to pay a $0.20 quarterly dividend, yielding approximately 4.7%.

Olin Corporation (NYSE:OLN - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday . The stock traded as low as $16.68 and last traded at $16.84, with a volume of 168682 shares traded. The stock had previously closed at $16.88.

Analyst Ratings Changes

Several equities analysts have issued reports on OLN shares. Citigroup cut shares of Olin from a "neutral" rating to an "underperform" rating in a research report on Tuesday, June 30th. UBS Group cut their price target on shares of Olin from $23.00 to $21.00 and set a "neutral" rating on the stock in a report on Monday, August 3rd. JPMorgan Chase & Co. reduced their price objective on shares of Olin from $26.00 to $25.00 and set a "neutral" rating on the stock in a research note on Thursday, June 18th. Wells Fargo & Company restated an "equal weight" rating and issued a $20.00 price objective (down from $25.00) on shares of Olin in a report on Monday, August 3rd. Finally, Royal Bank Of Canada lowered their target price on Olin from $24.00 to $20.00 and set a "sector perform" rating for the company in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Olin presently has an average rating of "Reduce" and a consensus target price of $22.62.

Olin Price Performance

The company has a current ratio of 1.42, a quick ratio of 0.87 and a debt-to-equity ratio of 1.77. The business's 50-day simple moving average is $19.46 and its two-hundred day simple moving average is $23.46. The firm has a market cap of $1.93 billion, a price-to-earnings ratio of -13.78 and a beta of 1.20.

Olin (NYSE:OLN - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The specialty chemicals company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.25). Olin had a negative return on equity of 4.76% and a negative net margin of 2.08%.The firm had revenue of $1.74 billion during the quarter, compared to analyst estimates of $1.81 billion. During the same quarter last year, the firm posted ($0.01) EPS. The firm's revenue for the quarter was down .9% on a year-over-year basis. As a group, research analysts expect that Olin Corporation will post -0.68 EPS for the current fiscal year.

Olin Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Thursday, August 27th were paid a dividend of $0.20 per share. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $0.80 annualized dividend and a yield of 4.7%. Olin's dividend payout ratio (DPR) is currently -65.04%.

Hedge Funds Weigh In On Olin

A number of institutional investors and hedge funds have recently modified their holdings of the business. Amundi lifted its stake in shares of Olin by 337.2% in the first quarter. Amundi now owns 684,036 shares of the specialty chemicals company's stock valued at $20,336,000 after buying an additional 527,586 shares in the last quarter. Empowered Funds LLC increased its position in shares of Olin by 1,946.0% during the first quarter. Empowered Funds LLC now owns 435,599 shares of the specialty chemicals company's stock worth $12,950,000 after acquiring an additional 414,309 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Olin by 22.4% during the first quarter. Dimensional Fund Advisors LP now owns 5,627,997 shares of the specialty chemicals company's stock worth $167,311,000 after acquiring an additional 1,031,498 shares in the last quarter. Sei Investments Co. raised its holdings in shares of Olin by 132.5% in the 1st quarter. Sei Investments Co. now owns 169,374 shares of the specialty chemicals company's stock worth $5,036,000 after acquiring an additional 96,516 shares during the last quarter. Finally, Pzena Investment Management LLC raised its holdings in shares of Olin by 17.5% in the 4th quarter. Pzena Investment Management LLC now owns 4,507,913 shares of the specialty chemicals company's stock worth $93,900,000 after acquiring an additional 671,250 shares during the last quarter. 88.67% of the stock is currently owned by institutional investors.

About Olin

Olin Corporation is a global manufacturer of chemicals and ammunition headquartered in Clayton, Missouri. The company operates through two primary businesses: Chlor Alkali Products and Vinyls and Winchester.

Olin's Chlor Alkali Products and Vinyls business produces essential chemicals including chlorine, caustic soda, hydrogen, hydrochloric acid, bleach products and related chlorinated compounds. These materials are used in water treatment, pulp and paper, construction, plastics, cleaning products and other industrial applications.

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