Is Buying Owens Corning Here a Winning Strategy? Option Traders Like The Stock

 Is Buying Owens Corning Here a Winning Strategy? Option Traders Like The Stock

In today’s session Owens Corning (OC) registered an unusually high (1,779) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious OC increase. With 1,779 contracts traded and 27664 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: OC161021C00055000 closed last at: $0.95 or 137.5% up. About 85,492 shares traded hands. Owens Corning (NYSE:OC) has risen 17.49% since March 7, 2016 and is uptrending. It has outperformed by 9.90% the S&P500.

Analysts await Owens Corning (NYSE:OC) to report earnings on October, 19. They expect $0.99 earnings per share, up 3.13% or $0.03 from last year’s $0.96 per share. OC’s profit will be $110.00 million for 13.50 P/E if the $0.99 EPS becomes a reality. After $1.29 actual earnings per share reported by Owens Corning for the previous quarter, Wall Street now forecasts -23.26% negative EPS growth.

Owens Corning (NYSE:OC) Ratings Coverage

Out of 13 analysts covering Owens Corning (NYSE:OC), 5 rate it a “Buy”, 2 “Sell”, while 6 “Hold”. This means 38% are positive. $60 is the highest target while $40 is the lowest. The $52.80 average target is -1.23% below today’s ($53.46) stock price. Owens Corning has been the topic of 21 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The firm has “Mkt Perform” rating by FBR Capital given on Friday, July 29. The firm has “Neutral” rating given on Thursday, October 22 by Suntrust Robinson. Longbow upgraded the shares of OC in a report on Thursday, January 21 to “Buy” rating. RBC Capital Markets upgraded Owens Corning (NYSE:OC) on Monday, January 11 to “Outperform” rating. Stifel Nicolaus upgraded the stock to “Buy” rating in Thursday, July 23 report. The rating was initiated by Wells Fargo on Thursday, September 29 with “Market Perform”. On Tuesday, October 6 the stock rating was initiated by Goldman Sachs with “Sell”. The rating was reinitiated by Bank of America with “Neutral” on Friday, September 23. As per Thursday, October 22, the company rating was maintained by RBC Capital Markets. Wedbush maintained Owens Corning (NYSE:OC) rating on Wednesday, July 6. Wedbush has “Neutral” rating and $58 price target.

According to Zacks Investment Research, “Owens Corning is a world leader in building materials systems and composite solutions. Owens Corning people redefine what is possible each day to deliver high-quality products and services ranging from insulation, roofing, siding and stone, to glass composite materials used in transportation, electronics, telecommunications and other high-performance applications. Owens Corning has become a market-leading innovator of glass-fiber technology with sales.”

Insitutional Activity: The institutional sentiment decreased to 0.91 in 2016 Q2. Its down 0.40, from 1.31 in 2016Q1. The ratio turned negative, as 38 funds sold all Owens Corning shares owned while 101 reduced positions. 40 funds bought stakes while 86 increased positions. They now own 109.52 million shares or 4.78% more from 104.52 million shares in 2016Q1.
The California-based Forward Management Ltd has invested 0.06% in Owens Corning (NYSE:OC). Checchi Capital Advisers Ltd Llc accumulated 1,652 shares or 0.01% of the stock. Hancock Company owns 16,649 shares or 0.04% of their US portfolio. Her Majesty The Queen In Right Of The Province Of Alberta As Represented By Alberta Inv Management accumulated 0.02% or 42,275 shares. Ubs Asset Mgmt Americas accumulated 128,861 shares or 0.01% of the stock. Crestpoint Cap Ltd Liability Corp holds 0.33% of its portfolio in Owens Corning (NYSE:OC) for 12,100 shares. Credit Suisse Ag last reported 0.01% of its portfolio in the stock. Old Mutual Global Invsts (Uk) Ltd last reported 0.49% of its portfolio in the stock. Regentatlantic Capital Lc reported 6,665 shares or 0.03% of all its holdings. Daiwa Securities Incorporated accumulated 0% or 1,400 shares. Nokota Mngmt L P holds 592,096 shares or 1.14% of its portfolio. Stifel owns 82,854 shares or 0.02% of their US portfolio. Panagora Asset Mgmt holds 3,530 shares or 0% of its portfolio. Mufg Americas Holdg Corporation owns 100 shares or 0% of their US portfolio. Nordea Invest has 12,412 shares for 0% of their US portfolio.

Insider Transactions: Since April 11, 2016, the stock had 0 buys, and 10 sales for $16.01 million net activity. 9,376 shares were sold by SMITH DANIEL T, worth $507,335 on Monday, August 8. THAMAN MICHAEL H sold $7.98 million worth of stock. 21,975 Owens Corning (NYSE:OC) shares with value of $1.18M were sold by McMurray Michael C.. Shares for $3.64 million were sold by Genis Arnaud on Tuesday, August 30. 13,200 shares with value of $718,212 were sold by Schmidt Kelly on Tuesday, August 23. Shares for $938,110 were sold by McMonagle James J. MORRIS W HOWARD sold $213,000 worth of Owens Corning (NYSE:OC) on Friday, July 29.

Owens Corning is a holding company, which is engaged in the business of composite and building materials systems. The company has a market cap of $5.94 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 a 15.07 P/E ratio. The Firm operates in three divisions, namely, Composites, Insulation and Roofing.

OC Company Profile

Owens Corning, incorporated on July 21, 2006, is a holding company, which is engaged in the business of composite and building materials systems. 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. The Firm operates in three divisions, namely, Composites, Insulation and Roofing.

More notable recent Owens Corning (NYSE:OC) news were published by: Forbes.com which released: “Owens Corning is Oversold” on September 16, 2016, also Investorplace.com with their article: “3 Reasons Value Investors Will Love Owens Corning (OC)” published on October 04, 2016, Businesswire.com published: “Owens Corning Declares Third-Quarter 2016 Dividend” on September 16, 2016. More interesting news about Owens Corning (NYSE:OC) were released by: Toledoblade.com and their article: “Owens Corning has dividend of 18 cents” published on September 17, 2016 as well as Zacks.com‘s news article titled: “3 Reasons Value Stock Investors Will Love Owens Corning (OC)” with publication date: October 03, 2016.

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