Zacks Investment Research Lowers Olin (NYSE:OLN) to Strong Sell

Zacks Investment Research lowered shares of Olin (NYSE:OLN) from a hold rating to a strong sell rating in a research note released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $9.50 price target on the specialty chemicals company’s stock.

According to Zacks, “Olin’s adjusted loss for the second quarter was wider than the Zacks Consensus Estimate while sales missed. The company's Chlor Alkali & Vinyls and Epoxy segments are facing headwinds from challenging pricing and demand environment. Olin faces persistent weakness in caustic soda pricing, which is affecting its margins. Also, ethylene dichloride prices are witnessing a declining trend. The company’s Epoxy business also faces headwind from weak demand across a number of end-markets, including automotive, oil & gas and industrial coatings. Softer demand in these markets are hurting epoxy resin volumes and prices. Weak demand and pricing are likely to continue across these segments in the third quarter. The company’s high debt level is another matter of concern. Olin has also underperformed the industry over a year.”

Other equities research analysts also recently issued reports about the stock. Wells Fargo & Co increased their price objective on shares of Olin from $14.00 to $16.00 and gave the company an equal weight rating in a research report on Friday, May 1st. Vertical Research lowered Olin from a buy rating to a hold rating and set a $15.00 target price on the stock. in a report on Friday, May 1st. Stifel Nicolaus decreased their price target on Olin from $20.00 to $19.00 and set a buy rating for the company in a report on Friday, May 1st. BofA Securities cut Olin from a buy rating to a neutral rating and set a $12.00 price objective for the company. in a research report on Monday. Finally, Barclays reissued a hold rating and set a $15.00 target price on shares of Olin in a research report on Friday, April 17th. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have issued a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus price target of $13.84.

Shares of OLN stock traded up $0.23 during trading hours on Tuesday, reaching $11.57. 80,488 shares of the stock were exchanged, compared to its average volume of 3,036,583. The business’s fifty day moving average is $11.47 and its two-hundred day moving average is $13.14. The firm has a market capitalization of $1.79 billion, a P/E ratio of -7.65 and a beta of 1.38. Olin has a 12-month low of $8.76 and a 12-month high of $19.82. The company has a debt-to-equity ratio of 1.86, a current ratio of 1.75 and a quick ratio of 1.08.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 6.91%. The ex-dividend date of this dividend is Friday, August 7th. Olin’s dividend payout ratio is currently 133.33%.

In other Olin news, Director Scott Mcdougald Sutton bought 11,518 shares of the business’s stock in a transaction dated Tuesday, August 11th. The shares were acquired at an average cost of $11.24 per share, with a total value of $129,462.32. Following the acquisition, the director now directly owns 47,074 shares of the company’s stock, valued at approximately $529,111.76. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 11.70% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in OLN. Garner Asset Management Corp raised its stake in shares of Olin by 5.3% during the first quarter. Garner Asset Management Corp now owns 13,886 shares of the specialty chemicals company’s stock worth $162,000 after purchasing an additional 705 shares during the last quarter. Sterneck Capital Management LLC raised its position in Olin by 8.9% during the 1st quarter. Sterneck Capital Management LLC now owns 11,657 shares of the specialty chemicals company’s stock worth $136,000 after buying an additional 957 shares during the last quarter. Envestnet Asset Management Inc. raised its position in Olin by 5.9% during the 2nd quarter. Envestnet Asset Management Inc. now owns 17,778 shares of the specialty chemicals company’s stock worth $204,000 after buying an additional 994 shares during the last quarter. State of Alaska Department of Revenue lifted its stake in shares of Olin by 4.7% in the 1st quarter. State of Alaska Department of Revenue now owns 27,482 shares of the specialty chemicals company’s stock worth $320,000 after acquiring an additional 1,238 shares during the period. Finally, Cerebellum GP LLC acquired a new position in shares of Olin during the second quarter worth about $46,000. 92.62% of the stock is currently owned by hedge funds and other institutional investors.

Olin Company Profile

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, potassium hydroxide, chlorinated organics intermediates and solvents, and sodium hypochlorite.The Epoxy segment provides allyl chloride and epichlorohydrin, as well as acetone, bisphenol, cumene, and phenol for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid and solid epoxy resins that are used in adhesives, paints and coatings, composites, and flooring; and differentiated epoxy resins for use in electrical laminates, paints and coatings, wind blades, electronics, and construction, as well as offers additives.

See Also: Investing in Dividend Stocks

Get a free copy of the Zacks research report on Olin (OLN)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Olin (NYSE:OLN)

Receive News & Ratings for Olin Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Olin and related companies with MarketBeat.com's FREE daily email newsletter.