Norbord (OSB) Downgraded to Hold at Zacks Investment Research
Zacks Investment Research cut shares of Norbord (NYSE:OSB) from a buy rating to a hold rating in a research note published on Thursday morning.
According to Zacks, “Norbord Inc. is a producer of wood-based panels. It operates primarily in the United States, Europe and Canada. Norbord Inc. is headquartered in Toronto, Canada. “
A number of other equities analysts have also commented on the company. TD Securities increased their price target on Norbord from $38.00 to $39.00 and gave the company a hold rating in a research note on Monday, February 5th. ValuEngine raised Norbord from a buy rating to a strong-buy rating in a research note on Friday, February 2nd. Bank of America set a $31.00 price target on Norbord and gave the company a sell rating in a research note on Wednesday, January 24th. Finally, Scotiabank reissued a buy rating and set a $55.00 price target on shares of Norbord in a research note on Tuesday, November 14th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Norbord has a consensus rating of Hold and an average target price of $40.00.
Norbord (NYSE:OSB) last announced its quarterly earnings results on Friday, February 2nd. The construction company reported $1.41 EPS for the quarter, beating analysts’ consensus estimates of $1.38 by $0.03. Norbord had a return on equity of 45.78% and a net margin of 20.03%. The company had revenue of $596.00 million during the quarter. equities analysts anticipate that Norbord will post 3.63 EPS for the current year.
Norbord announced that its Board of Directors has initiated a share repurchase plan on Friday, October 27th that authorizes the company to buyback 5,140,000 outstanding shares. This buyback authorization authorizes the construction company to purchase shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 21st. Shareholders of record on Thursday, March 1st will be given a dividend of $0.4862 per share. The ex-dividend date is Wednesday, February 28th. This is an increase from Norbord’s previous quarterly dividend of $0.47. This represents a $1.94 dividend on an annualized basis and a yield of 5.55%. Norbord’s dividend payout ratio is 37.45%.
A number of hedge funds have recently modified their holdings of the business. Citadel Advisors LLC purchased a new stake in Norbord during the fourth quarter valued at approximately $289,000. ARP Americas LP purchased a new stake in Norbord during the fourth quarter valued at approximately $724,000. Arrowstreet Capital Limited Partnership purchased a new stake in Norbord during the fourth quarter valued at approximately $31,626,000. BlackRock Inc. raised its position in Norbord by 4.3% during the fourth quarter. BlackRock Inc. now owns 38,096 shares of the construction company’s stock valued at $1,288,000 after purchasing an additional 1,588 shares during the period. Finally, Schroder Investment Management Group raised its position in Norbord by 46.6% during the fourth quarter. Schroder Investment Management Group now owns 139,151 shares of the construction company’s stock valued at $5,921,000 after purchasing an additional 44,251 shares during the period. Institutional investors and hedge funds own 79.87% of the company’s stock.
Norbord Inc manufactures and sells wood-based panels for retail chains, contractor supply yards, and industrial customers primarily in North America and Europe. The company offers oriented strand boards for use in sheathing, flooring, and roofing in home construction applications; particleboards that are used in flooring and other construction applications; and medium density fiberboards for use in cabinet doors, mouldings, and interior wall paneling applications, as well as related value-added products for use in the construction of new homes, and renovation and repair of existing structures.
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