Owens Corning (OC) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Owens Corning (NYSE:OC) from a buy rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “Shares of Owens Corning has declined 52.7% over the past year. Earnings estimates for 2018 have also remained unchanged over the past 60 days, limiting upside potential for the stock's growth potential. Increased raw material and transportation costs have been denting its profitability. Additionally, adverse geographic mix, negative impact of foreign currencies translation and lower shingle volumes have been hurting the company’s performance over the past year. However, the company's effort on strategic acquisitions is likely to boost growth. The company remains focused to achieve its $120-million pricing forecast for 2018. It expects the benefits from higher price realization to continue further. In fact, it has achieved strong price realization and expects double-digit operating margins for all the three businesses in 2018. During the first nine months of 2018, pricing actions resulted in price improvement of $170 million.”
Other equities analysts have also issued research reports about the company. Goldman Sachs Group started coverage on Owens Corning in a research note on Tuesday, October 2nd. They issued a buy rating and a $75.00 target price for the company. Longbow Research restated a buy rating on shares of Owens Corning in a research note on Monday, September 24th. Northcoast Research raised their target price on Owens Corning to $64.00 and gave the stock a buy rating in a research note on Tuesday, November 27th. TheStreet lowered Owens Corning from a b- rating to a c+ rating in a research note on Tuesday, October 30th. Finally, Credit Suisse Group reduced their price objective on Owens Corning from $57.00 to $47.00 and set a neutral rating for the company in a research note on Thursday, October 25th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and an average price target of $72.37.
Owens Corning (NYSE:OC) last issued its earnings results on Wednesday, October 24th. The construction company reported $1.54 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.65 by ($0.11). The firm had revenue of $1.82 billion during the quarter, compared to analysts’ expectations of $1.89 billion. Owens Corning had a return on equity of 12.37% and a net margin of 5.33%. The business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the business earned $1.25 EPS. Analysts forecast that Owens Corning will post 4.75 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, January 18th. Stockholders of record on Thursday, January 3rd will be given a dividend of $0.22 per share. The ex-dividend date is Wednesday, January 2nd. This is a boost from Owens Corning’s previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.90%. Owens Corning’s dividend payout ratio (DPR) is 20.00%.
Several large investors have recently bought and sold shares of the company. Zacks Investment Management grew its position in shares of Owens Corning by 4.9% during the 2nd quarter. Zacks Investment Management now owns 18,662 shares of the construction company’s stock valued at $1,183,000 after acquiring an additional 880 shares during the period. Vident Investment Advisory LLC grew its position in shares of Owens Corning by 2.8% during the 2nd quarter. Vident Investment Advisory LLC now owns 37,334 shares of the construction company’s stock valued at $2,366,000 after acquiring an additional 1,028 shares during the period. DNB Asset Management AS grew its position 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 acquiring an additional 1,200 shares during the period. Carillon Tower Advisers Inc. grew its position in shares of Owens Corning by 0.6% during the 3rd quarter. Carillon Tower Advisers Inc. now owns 212,075 shares of the construction company’s stock valued at $11,509,000 after acquiring an additional 1,300 shares during the period. Finally, Advisors Asset Management Inc. boosted its holdings in Owens Corning by 6.1% in the 2nd quarter. Advisors Asset Management Inc. now owns 25,245 shares of the construction company’s stock worth $1,600,000 after buying an additional 1,448 shares during the last quarter. Hedge funds and other institutional investors own 93.98% of the company’s stock.
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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