Insider Decision: VALERIE PETERS Exercises Options At Olin For $2.32M

A significant insider transaction involving the exercise of company stock options was reported on February 1, by VALERIE PETERS, VP at Olin OLN, as per the latest SEC filing.

What Happened: In an insider options sale disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, PETERS, VP at Olin, exercised stock options for 71,800 shares of OLN. The transaction value amounted to $2,323,388.

As of Friday morning, Olin shares are down by 0.21%, with a current price of $52.5. This implies that PETERS's 71,800 shares have a value of $2,323,388.

All You Need to Know About Olin

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.

Olin: A Financial Overview

Negative Revenue Trend: Examining Olin's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -3.4% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Materials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 11.38%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Olin's EPS reflects a decline, falling below the industry average with a current EPS of 0.44.

Debt Management: Olin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.35, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: Olin's P/E ratio of 14.74 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 0.99 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Olin's EV/EBITDA ratio, surpassing industry averages at 7.2, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes Worth Your Attention

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

This article was generated by Benzinga's automated content engine and reviewed by an editor.