Orion Engineered Carbons S.A. (NYSE:OEC) reported that Carlos Quinones, the company's Senior Vice President of Global Operations, purchased 4,000 shares of company stock on June 10, 2024. The total value of the shares acquired is $94,040, with the price per share at $23.51.
This acquisition by a key executive is a transaction that market watchers often interpret as a sign of strong confidence in the company's future prospects. Quinones' purchase increases his direct ownership in Orion S.A. to a total of 69,702 shares.
Investors and analysts typically pay close attention to insider buying and selling as it can provide insights into the company's performance and insider perspectives on the stock's value. The details of these transactions are made available to the public through filings with the Securities and Exchange Commission.
Orion Engineered Carbons S.A., listed under the ticker NYSE:OEC, is a company specializing in the production of carbon black, a form of paracrystalline carbon manufactured through the controlled vapor-phase pyrolysis of hydrocarbons. The product is used in various applications, including tire and rubber manufacturing, coatings, and printing inks.
The company's shares are traded on the New York Stock Exchange, and as of the latest transaction, the stock price stands at $23.51 per share. This insider purchase might be of interest to investors looking to gauge the sentiment of the company's management regarding its valuation and future direction.
For more detailed information, investors are encouraged to review the full Form 4 filing which outlines all recent insider transactions for Orion S.A.
In other recent news, Orion Engineered Carbons S.A. has seen a price target increase from Jefferies, who maintain a Buy rating on the stock. The increase is attributed to anticipated favorable price settlements for rubber black and a global restock cycle in specialty carbons expected in 2025 to 2026. Jefferies believes these factors will enable Orion to achieve its $500 million mid-cycle EBITDA target.
Orion has also announced a partnership with French recycling company, Alpha Carbone, to boost sustainable carbon black production. The strategic collaboration includes a long-term supply agreement, positioning Orion as the exclusive customer for Alpha Carbone's tire pyrolysis oil. Operations are expected to commence in late 2025.
On the financial front, Orion reported a 19% increase in specialty volume year-over-year and a rise in gross profit per ton to $659 for the first quarter of 2024. The company anticipates continued growth and a record EBITDA for the year. Orion's CEO, Corning (NYSE:GLW) Painter, has indicated that the company remains committed to its guidance range for adjusted EBITDA and adjusted diluted EPS.
InvestingPro Insights
In light of the recent insider purchase by Carlos Quinones, Senior Vice President of Global Operations at Orion Engineered Carbons S.A. (NYSE:OEC), InvestingPro data offers additional context to investors considering the company's stock. The market capitalization of Orion stands at approximately $1.4 billion, reflecting the size and scale of the company within its industry. With a P/E ratio of 16.07, which adjusts to 15.85 for the last twelve months as of Q1 2024, the stock is valued in a way that may attract investors looking for reasonable earnings multiples.
Moreover, the company's profitability over the last twelve months is corroborated by a positive basic EPS (Continuing Operations) of $1.5. This, along with a dividend yield of 0.35% as of the most recent data, may appeal to investors seeking companies with a track record of profitability and a commitment to returning value to shareholders.
Among the InvestingPro Tips, it's noteworthy that management has shown confidence in the company's valuation and future by aggressively buying back shares. Additionally, analysts have revised their earnings upwards for the upcoming period, which could signal anticipated growth or operational efficiency gains. With these indicators, potential investors might find Orion's stock to be an intriguing opportunity.
Furthermore, for those interested in a deeper dive into Orion Engineered Carbons S.A., there are more InvestingPro Tips available at https://www.investing.com/pro/OEC. Currently, there are 6 additional tips that could provide further insights into the company's performance and potential investment value. To access these tips and a wealth of other financial data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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