On May 5, Beverley Babcock, Director at Olin OLN executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Babcock purchased 2,757 shares of Olin. The total transaction amounted to $60,019.
Olin shares are trading down 0.53% at $20.53 at the time of this writing on Tuesday morning.
Discovering Olin: A Closer Look
Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on the product type. The Chlor alkali products and Vinyls segment, which generates the majority of revenue, sells chlorine and caustic soda, which are used in a variety of industries including cosmetics, textiles, crop protection, and fire protection products. The Epoxy segment sells epoxy resins used in paints and coatings. The Winchester segment sells sporting ammunition and ammunition accessories under the Winchester brand. The majority of revenue comes from the United States.
Understanding the Numbers: Olin’s Finances
Revenue Growth: Olin displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 0.54%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.
Holistic Profitability Examination:
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Gross Margin: The company shows a low gross margin of 9.04%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Olin’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.01.
Debt Management: Olin’s debt-to-equity ratio surpasses industry norms, standing at 1.66. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 39.69 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.37 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Olin’s EV/EBITDA ratio of 6.98 exceeds industry averages, indicating a premium valuation in the market
Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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Navigating the Impact of Insider Transactions on Investments
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Olin’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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