Owens Corning (NYSE:OC) Stock Crosses Below 200-Day Moving Average Following Analyst Downgrade

Key Points

• Owens Corning shares fell below their 200-day moving average of $126.13 after Weiss Ratings downgraded the stock to a sell (D-); shares traded as low as $122.23.
• Analyst sentiment is mixed but leans to a consensus “Hold,” with an average price target of $140.93; recent calls included downgrades and target cuts.
• The company missed quarterly expectations, reporting EPS of $2.44 versus $3.07 forecast and revenue of $2.49 billion versus $2.62 billion; revenue fell 7.3% year over year.

Owens Corning Inc (NYSE:OC - Get Free Report) shares passed below its 200-day moving average during trading on Tuesday after Weiss Ratings downgraded the stock from a sell (d+) rating to a sell (d-) rating. The stock has a 200-day moving average of $126.13 and traded as low as $122.23. Owens Corning shares last traded at $122.8190, with a volume of 859,575 shares traded.

A number of other brokerages have also recently weighed in on OC. Wall Street Zen cut shares of Owens Corning from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Benchmark reaffirmed a "hold" rating on shares of Owens Corning in a research note on Wednesday, July 15th. The Goldman Sachs Group lowered their target price on Owens Corning from $169.00 to $128.00 and set a "neutral" rating on the stock in a report on Monday, October 12th. Vertical Research cut Owens Corning from a "hold" rating to a "sell" rating and set a $106.00 target price on the stock. in a report on Wednesday, October 7th. Finally, DA Davidson set a $143.00 price target on Owens Corning in a research report on Friday, October 9th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, Owens Corning has a consensus rating of "Hold" and an average target price of $140.93.

Insider Buying and Selling

In other news, insider Rachel Barthelemy Marcon sold 900 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $144.07, for a total transaction of $129,663.00. Following the transaction, the insider directly owned 21,449 shares in the company, valued at $3,090,157.43. This represents a 4.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.92% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Owens Corning during the 2nd quarter worth $1,401,161,000. Dimensional Fund Advisors LP raised its position in Owens Corning by 7.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,764,616 shares of the construction company's stock valued at $299,167,000 after purchasing an additional 188,211 shares during the period. First Trust Advisors LP lifted its stake in shares of Owens Corning by 22.7% during the first quarter. First Trust Advisors LP now owns 2,179,214 shares of the construction company's stock worth $235,835,000 after purchasing an additional 403,803 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in shares of Owens Corning by 721.9% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,170,179 shares of the construction company's stock worth $125,513,000 after purchasing an additional 1,027,800 shares in the last quarter. Finally, Nykredit A S acquired a new position in shares of Owens Corning during the second quarter worth about $166,083,000. Institutional investors and hedge funds own 88.40% of the company's stock.

Owens Corning Price Performance

The company has a 50-day moving average price of $121.31 and a two-hundred day moving average price of $126.13. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.13 and a quick ratio of 0.58. The company has a market cap of $9.47 billion, a PE ratio of -23.09, a P/E/G ratio of 3.06 and a beta of 1.31.

Owens Corning (NYSE:OC - Get Free Report) last announced its earnings results on Wednesday, November 4th. The construction company reported $2.44 earnings per share for the quarter, missing the consensus estimate of $3.07 by ($0.63). The business had revenue of $2.49 billion for the quarter, compared to analyst estimates of $2.62 billion. Owens Corning had a negative net margin of 4.42% and a positive return on equity of 19.14%. The firm's revenue was down 7.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.67 earnings per share. Sell-side analysts expect that Owens Corning Inc will post 8.47 earnings per share for the current fiscal year.

Owens Corning Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, November 5th. Shareholders of record on Monday, October 19th were issued a $0.79 dividend. The ex-dividend date of this dividend was Monday, October 19th. This represents a $3.16 dividend on an annualized basis and a yield of 2.6%. Owens Corning's dividend payout ratio (DPR) is currently -59.40%.

Owens Corning Company Profile

Owens Corning is a building-products company that develops and manufactures materials for residential and commercial construction. Its products include roofing shingles and components, insulation for buildings and industrial applications, and interior and exterior doors. Founded in 1938 through the combination of Owens-Illinois Glass Company and Corning Glass Works' fiberglass operations, the company has a long history of developing glass-fiber-based materials. It is headquartered in Toledo, Ohio, and serves customers in North America and international markets.

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