Owens-Illinois, Inc. (OI) Opportunity To Take Off in the Future

It has been reported that multiple insider activity took place at Owens-Illinois, Inc. (OI). President, O-I Asia Pacific Connors Timothy M. sold 44,715 shares for $23,761 in transaction occurred on 2019/03/08. After making this transaction, President, O-I Asia Pacific owns a direct stake of shares, worth $463,817, as per the last closing price. On 2019/03/07 Currarino Moyano Giancarlo, SVP, Chief Tech & SC Officer at OI, dumped 57,560 shares at an average price of $19.68 per share. The selling total is valued at $615,064.

SVP, Chief Tech & SC Officer, Currarino Moyano Giancarlo had divested 11,910 shares for $28,494 through a trade on 2018/03/15. Following this activity, the insider holds -14 shares worth $556,196 as of recent close.

FPA Funds Tr-FPA Crescent Fund revealed as top hedge fund owner in Owens-Illinois, Inc. (OI) with a stake of over 8.91M OI shares as of September 29, with a market value of approx. $167.47M as of today. The second largest holder, iShares Core S&P Midcap ETF, with 4.53M shares which equates to $90.25M worth of the stock. At third is Vanguard Total Stock Market Index Fund, which stood pat with 4.09M shares, a 2.53% position in Owens-Illinois, Inc., worth $76.92M. The insider holding in stood at 0.7% while institutions hold 95.6%.

Owens-Illinois, Inc. (NYSE:OI) rose 1.04% in recent trade and currently has a stock-market value of $3.04B. The shares finished at $19.52, after trading as low as $19.31 earlier in the session. It hit an intraday high Friday at $19.65. Trading activity significantly improved as the volume at ready counter increased to 1,104,432 shares versus 945,435 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,284,539 shares. The stock is now 24.57% above against its bear-market low of $15.67 on October 31, 2018. It has retreated -13.52% since it’s 52-week high of $22.16 reached in April. Now the market price is down -9.12% on the year and up 13.23% YTD.

OI stock’s 50 day simple moving average (SMA 50) price is $19.61 and its 200-day simple moving average (SMA 200) price is $18.29. The company’s stock currently has a total float of 154.13M shares. Its weekly volatility is hovering around 2.09% and felt 1.91% volatility in price over a month. On the upside, the share price will test short term resistance at around $19.68. On a downside, the stock is likely to find some support, which begins at $19.34. The failure to get near-term support could push it to $19.15.

It had seen a negative analyst call from BofA/Merrill, which downgraded the stock from Buy to Neutral on February 07. Analysts at Citigroup, shed their positive views on January 07 by lowering it fromBuy to Neutral. The stock lost favor of KeyBanc Capital Mkts analysts who expressed their lack of confidence in it using a downgrade from Sector Weight to Underweight on December 04. BofA/Merrill analysts came out with bullish views on November 09 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

When looking at valuations, Owens-Illinois, Inc. (OI) has a pricey P/E of 21.64x as compared to industry average of 19.73x. Moreover, it trades for 6.02 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.14x price/book and 0.44x price/sales. Compared to others, Owens-Illinois, Inc. is in a different league with regards to profitability, having net margins of 3.8%. To put some perspective around this, the industry’s average net margin is 3.02%. OI’s ROE is 29.5%, which is also considerably better than the industry’s ROE of 6.64%. It’s also very liquid in the near term, with a current ratio of 1.1. The stock has a debt/capital of 6.8.

Shares of OI have dropped -1.9% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Owens-Illinois, Inc. (NYSE:OI) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. OI last reported earnings that receded expectations. The company raked in $0.61 per share, -74.9% change on the same period last year. That was worse than consensus for $0.63. Revenue for the recent quarter stood at $1.64 billion, down -4% on last year and below the $1.68 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.73 billion to $1.8 billion, which should be compared with $1.81 billion generated last year. EPS is seen in a range of $0.79 to $0.9, against the $0.76 reported a year ago.