Olin (OLN) Rating 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 report report published on Thursday morning.

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 brokerages also recently weighed in on OLN. Stifel Nicolaus started coverage on Olin in a research report on Monday, December 10th. They issued a buy rating and a $33.00 target price for the company. Barclays started coverage on Olin in a research report on Monday, October 8th. They issued an equal weight rating and a $29.00 target price for the company. Nomura decreased their target price on Olin from $29.00 to $27.00 and set a neutral rating for the company in a research report on Wednesday, October 31st. ValuEngine raised Olin from a strong sell rating to a sell rating in a research report on Thursday, December 13th. Finally, SunTrust Banks decreased their target price on Olin to $35.00 and set an in-line rating for the company in a research report on Wednesday, October 31st. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and seven have issued a buy rating to the company. Olin has an average rating of Hold and an average price target of $32.00.

Shares of NYSE OLN opened at $22.89 on Thursday. Olin has a 1-year low of $17.87 and a 1-year high of $38.75. The company has a quick ratio of 1.13, a current ratio of 1.81 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $3.71 billion, a PE ratio of 28.26, a P/E/G ratio of 0.28 and a beta of 1.52.

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

In other news, Director Scott Mcdougald Sutton acquired 15,000 shares of the business’s stock in a transaction on Thursday, November 1st. The shares were purchased at an average price of $21.62 per share, for a total transaction 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP John Maurice Sampson acquired 5,000 shares of the business’s stock in a transaction on Tuesday, November 20th. The shares were purchased at an average price of $19.84 per share, for a total transaction of $99,200.00. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 21,800 shares of company stock worth $460,844. Insiders own 1.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in OLN. IMS Capital Management acquired a new stake in Olin during the third quarter valued at approximately $88,000. Baird Financial Group Inc. acquired a new stake in Olin during the second quarter valued at approximately $204,000. MML Investors Services LLC acquired a new stake in Olin during the third quarter valued at approximately $210,000. Acadian Asset Management LLC acquired a new stake in Olin during the third quarter valued at approximately $236,000. Finally, MAI Capital Management acquired a new stake in shares of Olin during the 2nd quarter worth approximately $240,000. Hedge funds and other institutional investors own 86.92% of the company’s stock.

About Olin

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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