At Owens Corning (NYSE:OC), Share Price Got a Bit Ahead of the Fundamentals

Owens Corning (NYSE:OC) Relative Strength Index (RSI) is 68.52, with weekly volatility at 2.03% and ATR at 2.18. The OC stock’s 52-week price range has touched low of $28.56 and a $76.08 high. Intraday shares traded counted 0.99 million, which was -9.43% lower than its 30-day average trading volume of 904.02K. Its shares traded lower over the last trading session, losing -0.33% on 10/13/20. The shares fell to a low of $74.4676 before closing at $74.78. OC’s previous close was $75.03 while the outstanding shares total 108.60M. The firm has a beta of 1.58.

Investors have identified the Building Products & Equipment company Owens Corning as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $8.05 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Owens Corning (OC) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 2604000000 million total, with 1393000000 million as their total liabilities.

OC were able to record 89.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 410.0 million. In cash movements, the company had a total of 229.0 million as operating cash flow.

Potential earnings growth for Owens Corning (OC)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Owens Corning recorded a total of 1.63 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -18.03% coming in sequential stages and their sales for the third quarter increasing by 1.48%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.28 billion trying to sell their products during the last quarter, with the result yielding a gross income of 343.0 million. This allows shareholders to hold on to 108.60M with the revenue now reading 0.87 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.26 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.54 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on OC sounds very interesting.

Is the stock of OC attractive?

In related news, SVP and Chief Growth Officer, SMITH DANIEL T sold 14,000 shares of the company’s stock in a transaction that recorded on Oct 06. The sale was performed at an average price of 75.00, for a total value of 1,050,000. As the sale deal closes, the Vice President and Controller, Schmidt Kelly now sold 4,967 shares of the company’s stock, valued at 342,723. Also, Director, MORRIS W HOWARD sold 2,660 shares of the company’s stock in a deal that was recorded on Aug 14. The shares were price at an average price of 67.35 per share, with a total market value of 179,138. Following this completion of acquisition, the Sr. VP & General Counsel, Harter Ava now holds 5,000 shares of the company’s stock, valued at 326,265. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.

11 out of 20 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Owens Corning. 1 analysts has assigned a Sell rating on the OC stock. The 12-month mean consensus price target for the company’s shares has been set at $73.81.