Olin (NYSE:OLN) Sets New 1-Year Low – What’s Next?

Olin Corporation (NYSE:OLN) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $17.73 and last traded at $17.6950, with a volume of 1156764 shares trading hands. The stock had previously closed at $18.40.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Citigroup downgraded Olin from a “neutral” rating to an “underperform” rating in a report on Tuesday, June 30th. Truist Financial reduced their target price on shares of Olin from $24.00 to $20.00 and set a “hold” rating on the stock in a report on Monday, August 3rd. Bank of America cut shares of Olin from a “buy” rating to an “underperform” rating and lowered their price target for the stock from $32.00 to $21.00 in a report on Tuesday, June 30th. The Goldman Sachs Group reduced their price objective on shares of Olin from $24.00 to $20.00 and set a “neutral” rating on the stock in a report on Tuesday, August 4th. Finally, Wells Fargo & Company reiterated an “equal weight” rating and set a $20.00 target price (down from $25.00) on shares of Olin in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, Olin currently has a consensus rating of “Reduce” and a consensus price target of $23.08.

Olin Price Performance

The stock’s 50-day moving average is $20.76 and its 200 day moving average is $24.30. The company has a debt-to-equity ratio of 1.77, a quick ratio of 0.87 and a current ratio of 1.42. The stock has a market capitalization of $2.02 billion, a PE ratio of -14.40 and a beta of 1.22.

Olin (NYSE:OLN) last released its quarterly earnings data on Thursday, July 30th. The specialty chemicals company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.25). The company had revenue of $1.74 billion during the quarter, compared to analyst estimates of $1.81 billion. Olin had a negative net margin of 2.08% and a negative return on equity of 4.76%. The business’s revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.01) EPS. As a group, equities analysts expect that Olin Corporation will post -0.64 earnings per share for the current year.

Olin Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Thursday, August 27th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, August 27th. This represents a $0.80 annualized dividend and a yield of 4.5%. Olin’s payout ratio is -65.04%.

Hedge Funds Weigh In On Olin

A number of hedge funds have recently modified their holdings of OLN. Hotchkis & Wiley Capital Management LLC raised its position in Olin by 5.5% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 12,690,488 shares of the specialty chemicals company’s stock valued at $317,135,000 after purchasing an additional 661,730 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Olin by 22.4% in the first quarter. Dimensional Fund Advisors LP now owns 5,627,997 shares of the specialty chemicals company’s stock valued at $167,311,000 after buying an additional 1,031,498 shares during the last quarter. State Street Corp boosted its stake in shares of Olin by 1.1% during the second quarter. State Street Corp now owns 4,830,406 shares of the specialty chemicals company’s stock worth $97,043,000 after buying an additional 50,309 shares during the period. Pzena Investment Management LLC grew its holdings in shares of Olin by 17.5% during the fourth quarter. Pzena Investment Management LLC now owns 4,507,913 shares of the specialty chemicals company’s stock worth $93,900,000 after buying an additional 671,250 shares during the last quarter. Finally, Orbis Allan Gray Ltd increased its position in Olin by 448.9% in the 4th quarter. Orbis Allan Gray Ltd now owns 3,804,561 shares of the specialty chemicals company’s stock valued at $79,249,000 after acquiring an additional 3,111,393 shares during the period. 88.67% of the stock is currently owned by hedge funds and other institutional investors.

About Olin

Olin Corporation is a diversified manufacturer specializing in chemical products and ammunition. The company’s core business activities encompass the production and distribution of chlor-alkali products, epoxy resins and derivatives, and small-caliber ammunition under the Winchester brand. Olin’s chemical operations supply chlorine, caustic soda and related co-products to a wide range of end markets, including water treatment, pulp and paper, pharmaceuticals and general industrial applications.

In its Chlor Alkali Products & Vinyls segment, Olin operates multiple manufacturing facilities that produce chlorine and sodium hydroxide, along with vinyl chloride monomer and polyvinyl chloride (PVC) compounds.