Owens Corning (OC) Lifted to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Owens Corning (NYSE:OC) from a sell rating to a hold rating in a research report sent to investors on Tuesday morning.
According to Zacks, “Increased raw material and transportation costs have been denting Owens Corning’s profitability. Moreover, adverse shipment timings and geographic mix have also been hurting roofing volumes. Also, the company expects 2018 overall U.S. asphalt shingles market in Roof segment to decline by mid-single digit on lower storm demand. Meanwhile, for the Composites segment, it expects 2018 EBIT to be slightly below 2017 level due to higher manufacturing costs, greater inflation and lower volume. Shares of Owens Corning have underperformed its industry so far this year. Earnings estimates have remained stable for 2018 and 2019 over the past 60 days. However, strength in the housing markets may keep the demand for Owens Corning’s products robust. Also, strategic acquisition may boost the company’s growth potential.”
A number of other research firms also recently issued reports on OC. Longbow Research reissued a buy rating on shares of Owens Corning in a research report on Monday, September 24th. Zelman & Associates upgraded Owens Corning from a hold rating to a buy rating in a report on Tuesday, June 19th. Goldman Sachs Group initiated coverage on Owens Corning in a report on Tuesday, October 2nd. They issued a buy rating and a $75.00 price target for the company. Seaport Global Securities set a $72.00 price target on Owens Corning and gave the stock a buy rating in a report on Wednesday, July 25th. Finally, Citigroup upped their price target on Owens Corning from $72.00 to $73.00 and gave the stock a neutral rating in a report on Wednesday, June 20th. One analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have given a buy rating to the stock. The stock has an average rating of Hold and a consensus price target of $80.37.
Owens Corning (NYSE:OC) last posted its earnings results on Wednesday, July 25th. The construction company reported $1.17 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.45 by ($0.28). The business had revenue of $1.82 billion for the quarter, compared to analyst estimates of $1.86 billion. Owens Corning had a return on equity of 11.72% and a net margin of 4.47%. The firm’s revenue for the quarter was up 14.2% compared to the same quarter last year. During the same period last year, the company posted $1.20 EPS. On average, analysts expect that Owens Corning will post 5.27 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, November 2nd. Shareholders of record on Tuesday, October 16th will be issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 1.67%. The ex-dividend date is Monday, October 15th. Owens Corning’s dividend payout ratio is presently 19.09%.
In other news, Director W Howard Morris sold 1,514 shares of the stock in a transaction that occurred on Thursday, August 23rd. The stock was sold at an average price of $58.47, for a total transaction of $88,523.58. Following the completion of the transaction, the director now directly owns 36,332 shares in the company, valued at approximately $2,124,332.04. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 1.60% of the stock is owned by corporate insiders.
Several institutional investors have recently added to or reduced their stakes in the company. Gradient Investments LLC purchased a new position in shares of Owens Corning during the 3rd quarter valued at approximately $138,000. Advisors Capital Management LLC boosted its stake in shares of Owens Corning by 9.2% during the 3rd quarter. Advisors Capital Management LLC now owns 47,895 shares of the construction company’s stock valued at $2,599,000 after buying an additional 4,033 shares during the last quarter. DNB Asset Management AS boosted its stake in shares of Owens Corning by 8.5% during the 3rd quarter. DNB Asset Management AS now owns 15,300 shares of the construction company’s stock valued at $830,000 after buying an additional 1,200 shares during the last quarter. United Capital Management of KS Inc. purchased a new position in shares of Owens Corning during the 3rd quarter valued at approximately $2,500,000. Finally, United Services Automobile Association boosted its stake in shares of Owens Corning by 17.0% during the 2nd quarter. United Services Automobile Association now owns 543,902 shares of the construction company’s stock valued at $34,467,000 after buying an additional 79,064 shares during the last quarter.
Owens Corning Company Profile
Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential and commercial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products.
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