Market Analysts see Olin Corporation [OLN] falling to $76. Time to buy?

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Olin Corporation [NYSE: OLN] plunged by -$5.75 during the normal trading session on Wednesday and reaching a high of $56.60 during the day while it closed the day at $51.46. The company report on June 14, 2022 that OLIN PROVIDES OPERATIONS UPDATE.


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Olin Corporation (NYSE: OLN) announced that half of its Plaquemine, Louisiana chlor alkali facility has returned to operation, which has been down since April 2022, with the remainder expected to return to operations in early August 2022.  Olin’s Freeport, Texas facility continues to operate at a reduced level of power generation with the expectation that a portion of the power generation will be restored in fourth quarter 2022.  In May, Olin resumed integrated epoxy resin production at its Stade, Germany facility, which had been temporarily idled in March 2022.

During second quarter 2022, Olin has experienced weaker than anticipated epoxy resin demand in North America and South America.  Olin is unwilling to sell incremental volume into a poor-quality market and operating the epoxy resin facilities at less than 50% operating rates is impractical.  As a result of these factors, Olin Corporation announced that it is temporarily curtailing epoxy and related upstream inputs production at its Freeport, Texas and Guaruja, Brazil facilities.

Olin Corporation stock has also loss -20.70% of its value over the past 7 days. However, OLN stock has declined by -2.57% in the 3 months of the year. Over the past six months meanwhile, it has lost -5.53% and lost -10.54% year-on date.

The market cap for OLN stock reached $8.25 billion, with 154.70 million shares outstanding and 151.12 million shares in the current float. Compared to the average trading volume of 1.89M shares, OLN reached a trading volume of 5986275 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 $76.06 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 1.80. 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.

RBC Capital Mkts have made an estimate for Olin Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 15, 2022. The new note on the price target was released on March 14, 2022, representing the official price target for Olin Corporation stock.

The Average True Range (ATR) for Olin Corporation is set at 2.82, with the Price to Sales ratio for OLN stock in the period of the last 12 months amounting to 0.87. The Price to Book ratio for the last quarter was 2.86, with the Price to Cash per share for the same quarter was set at 1.23. Price to Free Cash Flow for OLN in the course of the last twelve months was 5.50 with Quick ratio for the last quarter at 0.90.

OLN stock trade performance evaluation

Olin Corporation [OLN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -20.70. With this latest performance, OLN shares dropped by -18.04% in over the last four-week period, additionally sinking by -5.53% over the last 6 months – not to mention a rise of 7.91% 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 29.26, with the RSI for the last a single of trading hit 20.49, and the three-weeks RSI is set at 35.57 for Olin Corporation [OLN]. The present Moving Average for the last 50 days of trading for this stock 60.07, while it was recorded at 58.19 for the last single week of trading, and 54.68 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 +19.27 and a Gross Margin at +23.70. Olin Corporation’s Net Margin is presently recorded at +14.55.

Return on Equity for this stock inclined to 63.21, with Return on Assets sitting at 15.45.

Olin Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.50.

Earnings per share (EPS) analysis for Olin Corporation [OLN] stock

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 -10.70%.

Olin Corporation [OLN]: Insider Ownership positions

There are presently around $7,594 million, or 86.00% of OLN stock, in the hands of institutional investors. The top three institutional holders of OLN stocks are: VANGUARD GROUP INC with ownership of 15,867,281, which is approximately 3.207% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 15,796,238 shares of the stock with an approximate value of $903.7 million in OLN stocks shares; and SACHEM HEAD CAPITAL MANAGEMENT LP, currently with $683.66 million in OLN stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Olin Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 251 institutional holders increased their position in Olin Corporation [NYSE:OLN] by around 16,012,523 shares. Additionally, 220 investors decreased positions by around 21,115,223 shares, while 81 investors held positions by with 95,613,729 shares. The mentioned changes placed institutional holdings at 132,741,475 shares, according to the latest SEC report filing. OLN stock had 89 new institutional investments in for a total of 3,863,004 shares, while 67 institutional investors sold positions of 3,328,026 shares during the same period.

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