Goldman Sachs Downgrades Olin

Fintel reports that on September 6, 2023, Goldman Sachs downgraded their outlook for Olin (NYSE:OLN) from Buy to Neutral.

Analyst Price Forecast Suggests 28.10% Upside

As of August 31, 2023, the average one-year price target for Olin is 64.02. The forecasts range from a low of 47.47 to a high of $86.10. The average price target represents an increase of 28.10% from its latest reported closing price of 49.98.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Olin is 8,711MM, an increase of 11.03%. The projected annual non-GAAP EPS is 6.41.

Olin Declares $0.20 Dividend

On July 27, 2023 the company declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of August 10, 2023 will receive the payment on September 8, 2023. Previously, the company paid $0.20 per share.

At the current share price of $49.98 / share, the stock’s dividend yield is 1.60%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.09%, the lowest has been 1.23%, and the highest has been 8.57%. The standard deviation of yields is 1.80 (n=235).

The current dividend yield is 0.83 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.12. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 928 funds or institutions reporting positions in Olin. This is a decrease of 50 owner(s) or 5.11% in the last quarter. Average portfolio weight of all funds dedicated to OLN is 0.28%, a decrease of 10.37%. Total shares owned by institutions increased in the last three months by 3.55% to 131,598K shares. The put/call ratio of OLN is 0.93, indicating a bullish outlook.

What are Other Shareholders Doing?

Hotchkis & Wiley Capital Management holds 5,429K shares representing 4.31% ownership of the company. In it’s prior filing, the firm reported owning 5,400K shares, representing an increase of 0.54%. The firm decreased its portfolio allocation in OLN by 10.38% over the last quarter.

Yacktman Asset Management holds 4,316K shares representing 3.43% ownership of the company.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,101K shares representing 3.26% ownership of the company. In it’s prior filing, the firm reported owning 4,078K shares, representing an increase of 0.57%. The firm decreased its portfolio allocation in OLN by 14.08% over the last quarter.

IJH – iShares Core S&P Mid-Cap ETF holds 3,647K shares representing 2.90% ownership of the company. In it’s prior filing, the firm reported owning 3,796K shares, representing a decrease of 4.08%. The firm decreased its portfolio allocation in OLN by 14.78% over the last quarter.

Capital International Investors holds 3,559K shares representing 2.83% ownership of the company.

Olin Background Information
(This description is provided by the company.)

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

This article originally appeared on Fintel