Olin (NYSE:OLN) Sets New 12-Month Low – What’s Next?

Olin Co. (NYSE:OLN)’s share price reached a new 52-week low during trading on Monday . The company traded as low as $24.42 and last traded at $24.19, with a volume of 967195 shares changing hands. The stock had previously closed at $25.39.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on OLN shares. Citigroup decreased their target price on Olin from $48.00 to $45.00 and set a “buy” rating on the stock in a research report on Monday, December 16th. JPMorgan Chase & Co. cut shares of Olin from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $50.00 to $28.00 in a research report on Thursday. BMO Capital Markets dropped their target price on shares of Olin from $44.00 to $34.00 and set a “market perform” rating on the stock in a research report on Wednesday, February 5th. Wells Fargo & Company restated an “equal weight” rating on shares of Olin in a research report on Monday, February 3rd. Finally, Barclays reaffirmed an “equal weight” rating on shares of Olin in a research note on Monday, February 3rd. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $38.38.

Olin Stock Performance

The company has a quick ratio of 0.77, a current ratio of 1.27 and a debt-to-equity ratio of 1.32. The stock has a 50-day moving average of $30.66 and a 200 day moving average of $38.65. The stock has a market cap of $2.76 billion, a PE ratio of 26.56 and a beta of 1.45.

Olin (NYSE:OLN) last posted its quarterly earnings results on Thursday, January 30th. The specialty chemicals company reported $0.09 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.10. Olin had a return on equity of 5.10% and a net margin of 1.66%. Equities analysts predict that Olin Co. will post 1.38 EPS for the current fiscal year.

Olin Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Thursday, March 6th will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 3.35%. The ex-dividend date is Thursday, March 6th. Olin’s dividend payout ratio is currently 88.89%.

Olin announced that its Board of Directors has authorized a stock buyback program on Thursday, December 12th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the specialty chemicals company to buy up to 45% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Kenneth Todd Lane bought 7,250 shares of the stock in a transaction dated Tuesday, February 4th. The stock was acquired at an average price of $28.06 per share, for a total transaction of $203,435.00. Following the acquisition, the chief executive officer now owns 7,250 shares in the company, valued at approximately $203,435. This represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Olin

Institutional investors and hedge funds have recently made changes to their positions in the business. Hotchkis & Wiley Capital Management LLC boosted its holdings in shares of Olin by 6.4% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 8,838,988 shares of the specialty chemicals company’s stock valued at $424,095,000 after acquiring an additional 531,330 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its holdings in Olin by 11.5% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,543,844 shares of the specialty chemicals company’s stock valued at $153,582,000 after buying an additional 467,680 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Olin by 4.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,976,869 shares of the specialty chemicals company’s stock valued at $134,413,000 after purchasing an additional 178,145 shares in the last quarter. Pzena Investment Management LLC grew its stake in Olin by 7.4% in the 4th quarter. Pzena Investment Management LLC now owns 3,709,611 shares of the specialty chemicals company’s stock worth $125,385,000 after acquiring an additional 256,903 shares during the period. Finally, Millennium Management LLC lifted its position in Olin by 9.1% during the fourth quarter. Millennium Management LLC now owns 3,201,233 shares of the specialty chemicals company’s stock worth $108,202,000 after buying an additional 265,745 shares during the period. 88.67% of the stock is owned by hedge funds and other institutional investors.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. 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, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents.