Owens Corning (OC) Posts Earnings Beat While Increasing Dividend

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It’s a great morning to be waking up if you own shares of Owens Corning (NYSE:OC), as the company has just reported their fourth quarter earnings for last year. From an EPS perspective the company reported $0.66, beating analyst expectations of $0.45 per share by a wide margin. On a revenue front, Owens Corning (NYSE:OC) reported $1.297 billion, also edging out expections of $1.29 billion, this time by a hair.

“Owens Corning delivered an outstanding year with $550 million of adjusted EBIT,” said Chairman and Chief Executive Officer Mike Thaman. “Strong operational and commercial execution drove significant earnings growth in all three of our businesses, resulting in the best year of earnings growth in the history of our company.”

Earnings were not the only positive this morning, as the company has also announced a dividend increase of 6%, putting the new quarterly dividend at $0.18 per share. The stock increased 1.92% or $0.79 during the last trading session, hitting $41.93. OC has risen 2.04% since July 7, 2015 and is uptrending. It has outperformed the S&P500 by 10.91%.

From a total of 8 analysts covering Owens Corning (NYSE:OC) stock, 4 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $56 while the lowest target price is $40. The mean of all analyst targets is $49.71 which is 18.55% above today’s ($41.93) stock price. Owens Corning was the topic of 12 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets upgraded shares on January 11 to a “Outperform” rating. SunTrust downgraded OC stock in a recent report from October 22 to a “Neutral” rating. Finally, Goldman Sachs initiated the stock with a “Sell” rating in a report they issued on an October 6.

The institutional sentiment decreased to 1.04 in Q2 2015. It’s down 0.19, from 1.23 in 2015Q2. The ratio worsened, as 35 funds sold all their Owens Corning shares they owned while 95 reduced their positions. 52 funds bought stakes while 83 increased their total positions. Institutions now own 102.50 million shares which is 10.47% less than the previous share count of 114.49 million in 2015Q2.

Wayzata Investment Partners Llc holds 48.6% of its total portfolio in Owens Corning, equating to 2.84 million shares. Park Presidio Capital Llc owns 694,806 shares representing 6.86% of their total US portfolio. Moreover, Appaloosa Management Lp has 4.92% of their total portfolio invested in the company, equating to 3.36 million shares. The New York-based Bow Street Llc has a total of 4.66% of their portfolio invested in the stock. Sasco Capital Inc Ct, a Connecticut-based fund reported 4.81 million shares owned.

Since March 17, 2015, the stock had 0 buys, and 2 insider sales for a total of $2.85 million in net activity. Mcmurray Michael C. sold 11,000 shares worth $500,720. Chambers Brian sold 50,000 shares worth $2.35M. Francis Julian sold 1,425 shares worth $62,330. Mcmonagle James J sold 5,000 shares worth $200,950. The insider Smith Daniel T sold 4,861 shares worth $194,440.

Owens Corning is a holding company. The Firm is engaged in composite and building materials systems. The company has a market cap of $4.61 billion. The Company’s products range from glass fiber used to reinforce composite materials for transportation, electronics, marine, infrastructure, wind energy and other markets to insulation and roofing for residential, commercial and industrial applications. It has 19.53 P/E ratio. The Firm operates under three divisions: Composites, Insulation and Roofing.

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