Owens Corning (OC) Cut to Hold at Zacks Investment Research
Zacks Investment Research downgraded shares of Owens Corning (NYSE:OC) from a buy rating to a hold rating in a research report released on Tuesday.
According to Zacks, “Shares of Owens Corning has declined 52.7% over the past year. Earnings estimates for 2018 have also remained unchanged over the past 60 days, limiting upside potential for the stock's growth potential. Increased raw material and transportation costs have been denting its profitability. Additionally, adverse geographic mix, negative impact of foreign currencies translation and lower shingle volumes have been hurting the company’s performance over the past year. However, the company's effort on strategic acquisitions is likely to boost growth. The company remains focused to achieve its $120-million pricing forecast for 2018. It expects the benefits from higher price realization to continue further. In fact, it has achieved strong price realization and expects double-digit operating margins for all the three businesses in 2018. During the first nine months of 2018, pricing actions resulted in price improvement of $170 million.”
Several other brokerages have also recently issued reports on OC. Longbow Research reaffirmed a buy rating on shares of Owens Corning in a research note on Monday, September 24th. Goldman Sachs Group assumed coverage on shares of Owens Corning in a research note on Tuesday, October 2nd. They set a buy rating and a $75.00 price objective for the company. Northcoast Research upped their price objective on shares of Owens Corning to $64.00 and gave the company a buy rating in a research note on Tuesday, November 27th. Credit Suisse Group reiterated a neutral rating and issued a $57.00 target price on shares of Owens Corning in a report on Wednesday, October 17th. Finally, Bank of America lowered shares of Owens Corning from a neutral rating to an underperform rating in a report on Tuesday, October 23rd. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and nine have issued a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus price target of $72.37.
Owens Corning (NYSE:OC) last announced its quarterly earnings data on Wednesday, October 24th. The construction company reported $1.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.65 by ($0.11). Owens Corning had a net margin of 5.33% and a return on equity of 12.37%. The business had revenue of $1.82 billion for the quarter, compared to analysts’ expectations of $1.89 billion. During the same period in the prior year, the company posted $1.25 EPS. The firm’s revenue was up 6.8% on a year-over-year basis. On average, sell-side analysts forecast that Owens Corning will post 4.75 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 18th. Shareholders of record on Thursday, January 3rd will be given a $0.22 dividend. The ex-dividend date of this dividend is Wednesday, January 2nd. This is an increase from Owens Corning’s previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.90%. Owens Corning’s dividend payout ratio is currently 20.00%.
Several large investors have recently made changes to their positions in OC. Bank of America Corp DE grew its position in shares of Owens Corning by 95.8% in the 2nd quarter. Bank of America Corp DE now owns 1,255,463 shares of the construction company’s stock valued at $79,559,000 after buying an additional 614,241 shares during the last quarter. PGGM Investments grew its position in shares of Owens Corning by 3.1% in the 3rd quarter. PGGM Investments now owns 796,000 shares of the construction company’s stock valued at $43,199,000 after buying an additional 24,000 shares during the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. grew its position in shares of Owens Corning by 96.0% in the 2nd quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 4,900 shares of the construction company’s stock valued at $311,000 after buying an additional 2,400 shares during the last quarter. United Capital Management of KS Inc. purchased a new position in shares of Owens Corning in the 3rd quarter valued at $2,500,000. Finally, Bank of Nova Scotia purchased a new position in shares of Owens Corning in the 2nd quarter valued at $25,931,000. 93.98% of the stock is currently owned by institutional investors.
About Owens Corning
Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential and commercial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products.
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