Olin Corporation (OLN) Will Pop At Least 42.65% In Coming Weeks

Olin Corporation (NYSE:OLN) is now being followed by Standpoint Research, as they initiated the stock at Buy on August 28. Analysts at Cowen, maintained the company shares at Outperform on August 06 but switched target price from $41 to $42. The stock lost favor of RBC Capital Mkts analysts who expressed their lack of confidence in it using a downgrade from Outperform to Sector Perform on June 11. Nomura analysts came out with bearish views on April 20 when the call was made. They think the stock is now Neutral compared to to their prior call for Buy.

Olin Corporation (OLN) hit an intraday high Thursday at $20.03. The shares finished at $20, after trading as low as $19.38 earlier in the session. It dropped -2.2% in recent trade and currently has a stock-market value of $3.35B. Trading activity significantly improved as the volume at ready counter increased to 3,234,174 shares versus 2,088,685 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,131,218 shares. The stock is now 8.17% above against its bear-market low of $18.49 on October 30, 2018. It has retreated -94.2% since it’s 52-week high of $38.84 reached in January. Now the market price is down -42.79% on the year and down -43.79% YTD.

OLN’s 50 day simple moving average (SMA 50) price is $22.13 and its 200-day simple moving average (SMA 200) price is $28.45. The company’s stock currently has a total float of 165.7M shares. Its weekly volatility is hovering around 4.08% and felt 3.62% volatility in price over a month. On the upside, the share price will test short term resistance at around $20.23. On a downside, the stock is likely to find some support, which begins at $19.58. The failure to get near-term support could push it to $19.15.

Separately, it has been reported that multiple insider activity took place at Olin Corporation (OLN). SVP, Business Operations Sampson John Maurice acquired 5,000 shares for $51,335 in transaction occurred on 2018/11/20. After making this transaction, the SVP, Business Operations owns a direct stake of 99,200 shares, worth $1,026,700, as per the last closing price. On 2018/11/12 Shipp Earl L, Director at OLN, purchased 600 shares at an average price of $20.7 per share. The new stake is valued at $142,000.

Director, Larrimore Randall W had invested in 1,200 shares for $63,965 through a trade on 2018/11/09. Following this activity, the insider holds 24,924 shares worth $1,279,300 as of recent close. Wall Street’s most bullish Olin Corporation (NYSE:OLN) analysts are predicting the share price to blow past $38 per share during the next 12 months. The current median share price forecast by them is $27, suggesting that the stock could increase 35% in that time frame. The average price target of $28.53 calls for a nearly 42.65% increase in the stock price.

When looking at valuations, Olin Corporation (OLN) has a cheap P/E of 10.35x as compared to industry average of 23.55x. Moreover, it trades for 8.91 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.14x price/book and 0.48x price/sales. Compared to others, Olin Corporation is in a different league with regards to profitability, having net margins of 11%. To put some perspective around this, the industry’s average net margin is 9.47%. OLN’s ROE is 27.3%, which is also considerably better than the industry’s ROE of 6.65%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 1.14.

Shares of Olin Corporation (OLN) have gained 2.8% since the company’s last earnings report. Over the past 12 fiscal quarters, Olin Corporation (NYSE:OLN) has topped consensus earnings estimates in 3 quarters (25%), missed earnings in 6 quarters (50%), whereas at 3 occasion EPS met analyst expectations. OLN last reported earnings on October 29, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.66 per share, -94.59% change on the same period last year. That was worse than consensus for $0.75. Revenue for the recent quarter stood at $1.87 billion, up 20% on last year and above the $1.8 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.64 billion to $1.86 billion, which should be compared with $1.61 billion generated last year. EPS is seen in a range of $0.29 to $0.48, against the $0.59 reported a year ago.