uploads///Part  Olin

Olin Surged Ahead in August: Here’s Why


Dec. 4 2020, Updated 10:53 a.m. ET

Olin in August

Olin Corporation (OLN) turned out to be one of the best performers among the specialty segments in August. It gained ~4.1% and outperformed the broader market S&P 500 (SPY), which gained 3% that month. Among Olin’s peers, LyondellBasell (LYB) rose 1.8%, while Celanese (CE) and Eastman Chemical (EMN) fell ~1.15 and ~6.4%, respectively.

Article continues below advertisement

Driving factors

Olin announced its second-quarter earnings in August. It reported net income of $58.6 million compared to a net loss of $5.9 million in the corresponding quarter of 2017. Its revenue in the second quarter grew a healthy 13.2% year-over-year. The company also made an upward revision to its 2018 adjusted EBITDA to $1.3 billion. As a result, analysts have mixed opinions.

  • UBS reduced its target price to $32 from $33.
  • Cowen and Company raised its target price to $42 from $41.

Overall, a positive outlook helped Olin stock rise. Strong gains helped the trend reversal of its 100-day moving average. Olin now trades 1.8% above its 100-day moving average. Its RSI (relative strength index) of 58 indicates that the stock is neither overbought nor oversold. An RSI of 70 and above indicates an overbought position, and an RSI of 30 and below indicates that the stock is oversold.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.