Olin Corporation [NYSE: OLN] surged by $0.98 during the normal trading session on Thursday and reaching a high of $42.27 during the day while it closed the day at $38.96. The company report on March 16, 2021 that Olin Announces Chlor Alkali Capacity Reduction.
Olin Corporation (NYSE: OLN) announced that it plans to permanently shut down approximately 50% of its diaphragm-grade chlor alkali capacity (approximately 200,000 tons) at its McIntosh, Alabama facility. The closure is expected to be completed by March 31, 2021. This action is expected to be cash flow accretive. Olin’s first quarter 2021 results are forecast to include approximately $5 million of restructuring charges associated with this plan.
“This is yet another step in Olin’s efforts to right-size our asset base and achieve reinvestment economics across our complete Electrochemical Unit portfolio,” remarked Scott Sutton, Olin President and Chief Executive Officer. “Shareholders can expect Olin to continue to take high-capital, non-accretive assets off our balance sheet as existing contractual supply obligations end, focusing our Olin teammates and resources toward unleashing Olin’s true value potential.”.
Olin Corporation stock has also gained 17.03% of its value over the past 7 days. However, OLN stock has inclined by 64.46% in the 3 months of the year. Over the past six months meanwhile, it has gained 232.99% and gained 58.63% year-on date.
The market cap for OLN stock reached $6.18 billion, with 158.20 million shares outstanding and 154.57 million shares in the current float. Compared to the average trading volume of 1.40M shares, OLN reached a trading volume of 4558905 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Olin Corporation [OLN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for OLN shares is $29.86 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on OLN stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Tudor Pickering have made an estimate for Olin Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 18, 2021. The new note on the price target was released on February 01, 2021, representing the official price target for Olin Corporation stock. Previously, the target price had yet another raise to $31, while KeyBanc Capital Markets analysts kept a Overweight rating on OLN stock. On December 09, 2020, analysts increased their price target for OLN shares from 22 to 32.
The Average True Range (ATR) for Olin Corporation is set at 1.69, with the Price to Sales ratio for OLN stock in the period of the last 12 months amounting to 1.07. The Price to Book ratio for the last quarter was 4.25, with the Price to Cash per share for the same quarter was set at 1.20.
OLN stock trade performance evaluation
Olin Corporation [OLN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.03. With this latest performance, OLN shares gained by 35.00% in over the last four-week period, additionally plugging by 232.99% over the last 6 months – not to mention a rise of 255.47% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for OLN stock in for the last two-week period is set at 79.37, with the RSI for the last a single of trading hit 85.55, and the three-weeks RSI is set at 75.29 for Olin Corporation [OLN]. The present Moving Average for the last 50 days of trading for this stock 29.21, while it was recorded at 35.87 for the last single week of trading, and 19.05 for the last 200 days.
Olin Corporation [OLN]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Olin Corporation [OLN] shares currently have an operating margin of -0.72 and a Gross Margin at +6.92. Olin Corporation’s Net Margin is presently recorded at -16.84.
Return on Total Capital for OLN is now -0.70, given the latest momentum, and Return on Invested Capital for the company is -16.67. Return on Equity for this stock declined to -50.15, with Return on Assets sitting at -11.11. When it comes to the capital structure of this company, Olin Corporation [OLN] has a Total Debt to Total Equity ratio set at 291.57. Additionally, OLN Total Debt to Total Capital is recorded at 74.46, with Total Debt to Total Assets ending up at 51.14. Long-Term Debt to Equity for the company is recorded at 284.61, with the Long-Term Debt to Total Capital now at 72.68.
Reflecting on the efficiency of the workforce at the company, Olin Corporation [OLN] managed to generate an average of -$121,237 per employee. Receivables Turnover for the company is 7.38 with a Total Asset Turnover recorded at a value of 0.66.Olin Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.40.
Earnings per share (EPS) analysis for Olin Corporation [OLN] stock
With the latest financial reports released by the company, Olin Corporation posted -0.39/share EPS, while the average EPS was predicted by analysts to be reported at -0.26/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -50.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for OLN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Olin Corporation go to 2.30%.
Olin Corporation [OLN]: Insider Ownership positions
There are presently around $5,322 million, or 87.90% of OLN stock, in the hands of institutional investors. The top three institutional holders of OLN stocks are: FMR LLC with ownership of 23,679,306, which is approximately 73.822% of the company’s market cap and around 0.40% of the total institutional ownership; SACHEM HEAD CAPITAL MANAGEMENT LP, holding 14,950,000 shares of the stock with an approximate value of $582.45 million in OLN stocks shares; and BLACKROCK INC., currently with $561.48 million in OLN stock with ownership of nearly -0.032% of the company’s market capitalization.
Positions in Olin Corporation stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 130 institutional holders increased their position in Olin Corporation [NYSE:OLN] by around 17,223,579 shares. Additionally, 165 investors decreased positions by around 16,586,172 shares, while 33 investors held positions by with 102,790,593 shares. The mentioned changes placed institutional holdings at 136,600,344 shares, according to the latest SEC report filing. OLN stock had 60 new institutional investments in for a total of 1,992,393 shares, while 39 institutional investors sold positions of 4,006,210 shares during the same period.