Technicals Say Owens Corning (OC) Is A Hold

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Owens Corning (NYSE:OC) finished Friday with a subtraction of -$1.7 to close at $85.30, a downside of -1.95 percent. An average of 517,160 shares of common stock have been traded in the last five days. There was a fall of -$2.09 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 921,815 shares traded, while the 50-day average volume stands at 1,000,972.

OC stock has decreased by -3.98% in the last month. The company shares reached their 1-month lowest point of $83.98 on 12/30/22. With the stock rallying to its 52-week high on 02/16/22, shares of the company touched a low of $72.97 and a high of $101.12 in 52 weeks. It has reached a new high 5 times so far this year and lost -5.75% or -$5.20 in price. In spite of this, the price is down -15.64% from the 52-week high.

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Insider Transactions

OC stock investors should be aware that Owens Corning (OC) stock had its last reported insider trading activity 22 days ago on Dec 09. In this transaction, the insider spent $204,440. President, Composites, Sandri Marcio A, disposed of 3,600 shares at a price of $90.06 on Nov 28. The insider now owns more than $324,216 worth of shares. Prior to that, Chair, President and CEO Chambers Brian went on to Sale 7,600 shares at $80.80 each on Sep 19. An amount of $614,080 was transacted.

Valuation Metrics

Owens Corning (OC) has a trailing price-to-earnings (P/E) ratio of 6.27. The stock’s beta is 1.40. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.82, the price-to-book (PB) ratio at 1.77, and the price-to-cash flow ratio at 9.74.

The company has a payout ratio of 9.60%. The company’s most recent quarterly dividend payment was $0.52 a share, representing a up of 48.57% from $0.35 last year. Its latest increase dividend $0.17 reported on Friday December 2 2022.

Financial Health

The quick ratio of Owens Corning for the three months ended September 29 was 1.10, and the current ratio was 1.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.64 and a total debt to equity ratio of 0.64 for the quarter ending September 29. Its gross profit as reported stood at $2.22 billion compared to revenue of $8.5 billion.

Earnings Surprise

For the three-month period that ended September 29, Owens Corning had $2.99 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $470.0 million in the quarter, while revenues were grew 44.68%. The analyst consensus anticipated Owens Corning’s latest quarter earnings to come in at $3.19 per share, but it turned out to be $3.57, a 11.90% surprise. For the quarter, EBITDA amounted to $738.0 million. Shareholders own equity worth $93.46 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Owens Corning (OC) price momentum. RSI 9-day as of the close on 30 December was 37.15%, suggesting the stock is Neutral, with historical volatility in this time frame at 32.10%.

As of today, OC’s price is $86.65 -2.39% or -$2.09 from its 5-day moving average. OC is currently trading -5.32% lower than its 20-day SMA and -0.87% lower than its 100-day SMA. However, the stock’s current price level is +1.56% above the SMA50 and -11.16% below the SMA200.

The stochastic %K and %D were 8.21% and 11.43%, respectively, and the average true range (ATR) was 2.69. With the 14-day stochastic at 8.79% and the average true range at 2.76, the RSI (14) stands at 41.34%. The stock has reached -1.45 on the 9-day MACD Oscillator while the 14-day reading was at -3.72.

Analyst Ratings

JP Morgan downgraded Owens Corning (NYSE: OC) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Owens Corning (OC) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell OC, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.

What is OC’s price target for the next 12 months?

Analysts predict a range of price targets between $70.00 and $155.00, with a median target of $94.00. Taking a look at these predictions, the average price target given by analysts for Owens Corning (OC) stock is $100.27.

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