Olin (OLN) Shares Surge 5.8% to $23.86 as Operations Normalize
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Stock Recovery: Olin (OLN) shares rose 5.8% in the last trading session to close at $23.86, with trading volume significantly higher than usual, indicating market confidence in its recovery.
- Earnings Outlook Downgrade: Despite Olin expecting a quarterly loss of $0.28 per share, reflecting a 411.1% year-over-year decline, its revenue forecast of $1.62 billion shows only a 3% decrease from the previous year, indicating some market resilience.
- Operational Normalization: The Freeport, TX facility has returned to normal operations, alleviating performance pressures caused by unplanned downtime and lower demand, with management focusing on safe operations and cost control initiatives.
- Market Watch: Olin's consensus EPS estimate has remained unchanged over the past 30 days, suggesting potential lack of upward momentum in stock price, prompting investors to closely monitor future earnings estimate revisions.
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Analyst Views on OLN
Wall Street analysts forecast OLN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OLN is 24.00 USD with a low forecast of 20.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
7 Hold
1 Sell
Hold
Current: 22.870
Low
20.00
Averages
24.00
High
30.00
Current: 22.870
Low
20.00
Averages
24.00
High
30.00
About OLN
Olin Corporation is a vertically integrated global manufacturer and distributor of chemical products and a United States manufacturer of ammunition. It operates through three segments: Chlor Alkali Products and Vinyls, Epoxy and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. The Epoxy segment produces and sells a full range of epoxy materials and precursors, including aromatics (acetone and phenol), allyl chloride, epichlorohydrin, liquid epoxy resins, solid epoxy resins and formulated solutions products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, industrial cartridges and clay targets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Olin Scheduled to Announce Q4 Earnings on January 29
- Earnings Announcement Schedule: Olin is set to release its Q4 2023 earnings on January 29 after market close, with consensus EPS estimated at -$0.62 and revenue expected at $1.54 billion, reflecting a 7.8% year-over-year decline.
- Earnings Forecast Downgrades: Over the past three months, Olin's EPS estimates have seen no upward revisions and seven downward adjustments, indicating market concerns about the company's profitability, which could negatively impact investor confidence.
- Revenue Forecast Changes: Similarly, revenue estimates have not seen any upward revisions but have experienced 13 downward adjustments, highlighting a pessimistic outlook for Olin's future performance, potentially putting pressure on its stock price.
- Market Reaction: Despite Olin's stock sliding after a negative preannouncement, Trump's purchase of $51 million in bonds since November suggests a degree of confidence in Olin, which may influence market sentiment.
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Olin Corp. Analyzes Dividend History and Future Expectations
- Dividend Yield Expectation: Olin Corp.'s recent dividend yield stands at 3.4%, based on historical profitability fluctuations, indicating that the sustainability of future dividends remains a point of concern.
- Volatility Analysis: The trailing twelve-month volatility for Olin Corp. is calculated at 58%, suggesting that investors should exercise caution when considering selling covered calls at the $40 strike for January 2028 to avoid missing potential upside.
- Options Market Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components reached 886,181 contracts, while call volume hit 1.63M, indicating a strong preference for call options among investors, reflecting optimism about future market conditions.
- Options Trading Preference: The current put:call ratio of 0.54 is below the long-term median of 0.65, suggesting that investors are more inclined to purchase call options, which may signal a positive outlook for Olin Corp.
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