Olin (OLN) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Olin (NYSE:OLN) from a hold rating to a sell rating in a research note published on Thursday.

According to Zacks, “Earnings estimates for Olin for the fourth quarter and full-year 2018 have been going down lately. Olin is facing certain challenges in its Winchester unit including higher commodity material costs. Moreover, raw material cost inflation and commodity cost headwinds may dent its performance. The company’s high debt level is another concern. Olin has also underperformed the industry it belongs to in a year’s time.”

Several other equities analysts have also issued reports on the stock. ValuEngine raised shares of Olin from a strong sell rating to a sell rating in a report on Thursday, December 13th. Stifel Nicolaus assumed coverage on shares of Olin in a report on Monday, December 10th. They issued a buy rating and a $33.00 price target on the stock. TheStreet lowered shares of Olin from a b- rating to a c+ rating in a report on Monday, November 12th. Citigroup cut their price target on shares of Olin from $33.00 to $26.00 and set a buy rating on the stock in a report on Thursday, November 1st. Finally, Barclays cut their price target on shares of Olin from $29.00 to $24.00 and set an equal weight rating on the stock in a report on Wednesday, October 31st. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and seven have given a buy rating to the company’s stock. Olin presently has a consensus rating of Hold and a consensus price target of $32.00.

OLN stock traded up $0.21 during trading on Thursday, hitting $22.89. 3,213,615 shares of the company’s stock traded hands, compared to its average volume of 2,555,839. The firm has a market cap of $3.71 billion, a price-to-earnings ratio of 28.26, a PEG ratio of 0.28 and a beta of 1.52. The company has a quick ratio of 1.13, a current ratio of 1.81 and a debt-to-equity ratio of 1.14. Olin has a 1 year low of $17.87 and a 1 year high of $38.75.

Olin (NYSE:OLN) last issued its quarterly earnings data on Monday, October 29th. The specialty chemicals company reported $0.66 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.75 by ($0.09). The business had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Olin had a net margin of 11.02% and a return on equity of 10.70%. The business’s quarterly revenue was up 20.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.31 earnings per share. Analysts anticipate that Olin will post 1.88 EPS for the current fiscal year.

In related news, SVP John Maurice Sampson acquired 5,000 shares of the stock in a transaction dated Tuesday, November 20th. The stock was acquired at an average cost of $19.84 per share, for a total transaction of $99,200.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Scott Mcdougald Sutton acquired 15,000 shares of the stock in a transaction dated Thursday, November 1st. The shares were bought at an average price of $21.62 per share, with a total value of $324,300.00. Following the completion of the purchase, the director now directly owns 15,000 shares of the company’s stock, valued at approximately $324,300. The disclosure for this purchase can be found here. Insiders have bought 21,800 shares of company stock valued at $460,844 over the last quarter. Insiders own 1.70% of the company’s stock.

Several large investors have recently bought and sold shares of the company. FMR LLC lifted its position in Olin by 68.3% during the second quarter. FMR LLC now owns 12,699,713 shares of the specialty chemicals company’s stock valued at $364,736,000 after purchasing an additional 5,155,375 shares during the period. Morgan Stanley lifted its position in Olin by 93.7% during the third quarter. Morgan Stanley now owns 1,840,101 shares of the specialty chemicals company’s stock valued at $47,253,000 after purchasing an additional 890,205 shares during the period. TIAA CREF Investment Management LLC lifted its position in Olin by 7.0% during the third quarter. TIAA CREF Investment Management LLC now owns 8,529,381 shares of the specialty chemicals company’s stock valued at $219,035,000 after purchasing an additional 558,878 shares during the period. Federated Investors Inc. PA lifted its position in Olin by 295.0% during the third quarter. Federated Investors Inc. PA now owns 519,686 shares of the specialty chemicals company’s stock valued at $13,346,000 after purchasing an additional 388,129 shares during the period. Finally, Victory Capital Management Inc. acquired a new position in Olin during the third quarter valued at $9,256,000. Institutional investors and hedge funds own 86.92% of the company’s stock.

Olin Company Profile

Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide.

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