Royal Bank Of Canada Issues Pessimistic Forecast for Owens Corning (NYSE:OC) Stock Price

Key Points

• Royal Bank Of Canada has revised its target price for Owens Corning from $184.00 to $180.00, indicating a potential upside of 21.95% based on the stock's current price with an "outperform" rating.
• Owens Corning reported $4.21 EPS for the last quarter, which exceeded analysts' expectations of $3.80, and demonstrated a year-over-year revenue increase of 10% to $2.75 billion.
• The company has authorized a stock repurchase plan allowing the buyback of up to 12 million shares, signaling confidence from the board in the stock's undervaluation.

Owens Corning (NYSE:OC - Get Free Report) had its target price dropped by stock analysts at Royal Bank Of Canada from $184.00 to $180.00 in a report released on Thursday,Benzinga reports. The firm presently has an "outperform" rating on the construction company's stock. Royal Bank Of Canada's target price suggests a potential upside of 21.95% from the stock's current price.

A number of other brokerages also recently issued reports on OC. UBS Group reduced their price target on Owens Corning from $235.00 to $218.00 and set a "buy" rating on the stock in a report on Thursday, May 8th. Evercore ISI set a $165.00 target price on shares of Owens Corning in a research note on Thursday, May 15th. Wells Fargo & Company upped their price objective on Owens Corning from $160.00 to $165.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Wolfe Research raised shares of Owens Corning from a "peer perform" rating to an "outperform" rating in a report on Friday, May 9th. Finally, 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 report on Thursday, May 8th. Five investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $185.00.

Owens Corning Price Performance

NYSE OC traded down $0.13 during midday trading on Thursday, hitting $147.60. The company had a trading volume of 565,085 shares, compared to its average volume of 927,013. Owens Corning has a twelve month low of $123.40 and a twelve month high of $214.53. The firm has a 50-day moving average price of $139.72 and a 200-day moving average price of $148.11. The company has a current ratio of 1.44, a quick ratio of 0.93 and a debt-to-equity ratio of 1.02. The company has a market capitalization of $12.55 billion, a PE ratio of 51.98, a P/E/G ratio of 3.72 and a beta of 1.32.

Owens Corning (NYSE:OC - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The construction company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $3.80 by $0.41. Owens Corning had a return on equity of 25.03% and a net margin of 2.28%. The firm had revenue of $2.75 billion for the quarter, compared to analyst estimates of $2.70 billion. During the same quarter in the previous year, the company posted $4.64 EPS. The business's revenue was up 10.0% on a year-over-year basis. As a group, analysts anticipate that Owens Corning will post 15.49 earnings per share for the current fiscal year.

Owens Corning announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 14th that allows the company to repurchase 12,000,000 shares. This repurchase authorization allows the construction company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Owens Corning

Several institutional investors have recently modified their holdings of OC. OneDigital Investment Advisors LLC raised its position in Owens Corning by 33.3% in the first quarter. OneDigital Investment Advisors LLC now owns 1,639 shares of the construction company's stock valued at $234,000 after purchasing an additional 409 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its stake in Owens Corning by 11.9% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 30,921 shares of the construction company's stock worth $4,416,000 after purchasing an additional 3,298 shares during the period. Wedge Capital Management L L P NC increased its stake in shares of Owens Corning by 32.0% during the first quarter. Wedge Capital Management L L P NC now owns 72,848 shares of the construction company's stock valued at $10,404,000 after buying an additional 17,660 shares during the period. Moran Wealth Management LLC increased its stake in shares of Owens Corning by 31.4% during the first quarter. Moran Wealth Management LLC now owns 140,568 shares of the construction company's stock valued at $20,076,000 after buying an additional 33,631 shares during the period. Finally, Eisler Capital Management Ltd. purchased a new position in shares of Owens Corning during the fourth quarter valued at approximately $2,403,000. Institutional investors own 88.40% of the company's stock.

Owens Corning Company Profile

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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