Clayton, MO-based Olin Corporation (NYSE:OLN), a $4 billion market cap player in the chemicals and allied products industry, disclosed in an 8-K filing with the SEC that Damian Gumpel, Vice President of Corporate Strategy, will be resigning from his position, effective February 22, 2025. According to InvestingPro data, the company has maintained dividend payments for 51 consecutive years, demonstrating long-term stability despite recent stock price volatility. The announcement, made public today, comes following Gumpel's decision to pursue other career opportunities.
According to the filing, Gumpel informed Olin of his intention to step down on January 15, 2025. Subsequently, on January 20, Olin entered into a Separation Agreement with Gumpel. Under this agreement, Gumpel is set to receive several separation benefits, provided he remains actively employed through the Separation Date, adheres to the terms of the agreement, and does not revoke certain release agreements.
The benefits include compensation at a rate of $300 per hour for any assistance provided to Olin in legal matters post-departure, an extension of the exercise period for his vested stock options from one year to two years, and the vesting of options granted in the years 2022, 2023, and 2024. Additionally, if Olin achieves certain performance targets, Gumpel will receive a prorated payout of his 9,084 unvested performance shares expected to vest at the end of 2025, based on his time served during the performance period.
Olin Corporation has not yet announced a successor for the VP of Corporate Strategy position. The company's stock is traded on the New York Stock Exchange and is known for its various products and services within the chemical sector.
Currently trading at $34.41, InvestingPro analysis suggests the stock is undervalued, with analyst price targets ranging from $31 to $50. For deeper insights into Olin's valuation and 10+ additional ProTips, including management's aggressive share buyback strategy, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Olin Corporation's earnings and revenue performance have been a focus of several analyst reviews. RBC Capital Markets adjusted its outlook for the company, lowering its price target from $48.00 to $45.00, citing mixed financial performance across business segments. The firm revised its EBITDA estimates for the fourth quarter and full year of 2025 to $160 million and $1.10 billion, respectively.
BofA Securities upgraded Olin's stock from Neutral to Buy based on the company's attractive valuation and strong free cash flow yield. The firm also projected a significant rise in Olin's EBITDA in 2025, partly due to expected improvements in demand and higher caustic soda prices.
KeyBanc Capital Markets maintained an Overweight rating on Olin's shares, adjusting its price target amid a modest rebound in caustic soda prices. KeyBanc expressed cautious optimism about the market's tightness and Olin's ability to navigate the current industry landscape.
Mizuho (NYSE:MFG) reduced its price target for Olin, citing challenging market conditions and anticipated reduction in earnings. Despite this, Olin announced a mid-cycle EBITDA target of $2 billion over the next five years, a substantial increase from the estimated $855 million for 2024.
Olin has shifted its strategy to maximize the value of its Electrochemical Unit (ECU), moving away from indexed contract pricing to freely negotiated prices with customers.
The company has also increased its share repurchase program to $2 billion and announced leadership changes with the retirement of Dana O’Brien, Senior Vice President and Chief Legal Officer, and the appointment of Angela M. Castle as her successor.
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