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Olin Corporation (NYSE:OLN): A Fundamentally Weighted Stock for Long-Term Investors

Olin Corporation (NYSE:OLN) Relative Strength Index (RSI) is 47.13, with weekly volatility at 4.30% and ATR at 1.92. The OLN stock’s 52-week price range has touched low of $9.67 and a $51.04 high. Intraday shares traded counted 1.18 million, which was 18.26% higher than its 30-day average trading volume of 1.44M. Its shares traded higher over the last trading session, gaining 4.13% on 06/21/21. The shares fell to a low of $45.225 before closing at $46.18. OLN’s previous close was $44.35 while the outstanding shares total 158.60M. The firm has a beta of 1.32.

Investors have identified the Specialty Chemicals company Olin Corporation 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 $7.45 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.

Olin Corporation (OLN) 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. For OLN, the company has in raw cash 259.9 million on their books with 42.1 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.01 billion total, with 1.22 billion as their total liabilities.

OLN were able to record 199.9 million as free cash flow during the 08/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by 70.2 million. In cash movements, the company had a total of 251.1 million as operating cash flow.

Potential earnings growth for Olin Corporation (OLN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/02/2021 quarter of the year, Olin Corporation recorded a total of 1.92 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 25.73% coming in sequential stages and their sales for the 08/02/2021 quarter increasing by 13.8%.

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 1.42 billion trying to sell their products during the last quarter, with the result yielding a gross income of 495.0 million. This allows shareholders to hold on to 158.60M with the recently reported earning now reading 1.54 cents per share. This is a figure that compared to analyst’s prediction for their 08/02/2021 (1.53 cents a share).

Having a look at the company’s valuation, the company is expected to record 5.47 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 OLN sounds very interesting.

Is the stock of OLN attractive?

In related news, VP & Treasurer, VERMILLION TERESA M sold 8,000 shares of the company’s stock in a transaction that recorded on May 25. The sale was performed at an average price of 48.64, for a total value of 389,154. As the sale deal closes, the VP & Controller, Sumner R Nichole now sold 693 shares of the company’s stock, valued at 33,264. Also, VP & Controller, Sumner R Nichole sold 6,807 shares of the company’s stock in a deal that was recorded on May 24. The shares were price at an average price of 48.00 per share, with a total market value of 326,736. Following this completion of acquisition, the VP & CFO, Slater Todd A now holds 18,250 shares of the company’s stock, valued at 870,689. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.

14 out of 18 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Olin Corporation. 0 analysts has assigned a Sell rating on the OLN stock. The 12-month mean consensus price target for the company’s shares has been set at $56.86.

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