ValuEngine Upgrades OMNOVA Solutions (OMN) to “Sell”

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ValuEngine upgraded shares of OMNOVA Solutions (NYSE:OMN) from a strong sell rating to a sell rating in a research report released on Tuesday.

Shares of OMNOVA Solutions stock opened at $8.35 on Tuesday. OMNOVA Solutions has a 52-week low of $7.36 and a 52-week high of $11.90. The stock has a market capitalization of $350.05 million, a P/E ratio of 14.91, a PEG ratio of 1.26 and a beta of 2.24. The company has a current ratio of 2.07, a quick ratio of 1.43 and a debt-to-equity ratio of 6.77.

OMNOVA Solutions (NYSE:OMN) last announced its quarterly earnings data on Wednesday, September 26th. The specialty chemicals company reported $0.18 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.04). OMNOVA Solutions had a negative net margin of 10.34% and a positive return on equity of 56.32%. The firm had revenue of $193.60 million during the quarter, compared to the consensus estimate of $198.48 million. During the same quarter in the prior year, the firm posted $0.25 earnings per share. The company’s revenue was down 3.6% on a year-over-year basis. As a group, sell-side analysts forecast that OMNOVA Solutions will post 0.62 EPS for the current year.

OMNOVA Solutions announced that its Board of Directors has initiated a share buyback plan on Wednesday, September 26th that permits the company to repurchase $20.00 million in outstanding shares. This repurchase authorization permits the specialty chemicals company to repurchase up to 4.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp increased its position in shares of OMNOVA Solutions by 7.4% during the second quarter. Bank of New York Mellon Corp now owns 4,713,685 shares of the specialty chemicals company’s stock valued at $49,021,000 after buying an additional 326,115 shares during the period. Putnam Investments LLC increased its position in shares of OMNOVA Solutions by 1,325.7% during the second quarter. Putnam Investments LLC now owns 193,900 shares of the specialty chemicals company’s stock valued at $2,017,000 after buying an additional 180,300 shares during the period. BlackRock Inc. increased its position in shares of OMNOVA Solutions by 5.0% during the second quarter. BlackRock Inc. now owns 3,306,799 shares of the specialty chemicals company’s stock valued at $34,391,000 after buying an additional 158,564 shares during the period. Assenagon Asset Management S.A. bought a new stake in shares of OMNOVA Solutions during the third quarter valued at about $1,279,000. Finally, Tygh Capital Management Inc. increased its position in shares of OMNOVA Solutions by 28.6% during the second quarter. Tygh Capital Management Inc. now owns 506,783 shares of the specialty chemicals company’s stock valued at $5,271,000 after buying an additional 112,599 shares during the period. Institutional investors and hedge funds own 91.53% of the company’s stock.

About OMNOVA Solutions

OMNOVA Solutions Inc provides emulsion polymers, specialty chemicals, and engineered surfaces for various commercial, industrial, and residential end uses in the United States, Europe, and Asia. The company operates in two segments, Specialty Solutions and Performance Materials. The Specialty Solutions segment designs, develops, produces, and markets specialty polymers which are used in various applications, such as architectural and industrial coatings; nonwovens used in hygiene products, filtration, and construction; drilling additives for oil and gas drilling, cementing, and fracking; elastomeric modification of plastic casings and hoses used in household, industrial products, and automobiles; tapes and adhesives; sports surfaces; textile finishes; commercial building refurbishment; new construction; residential cabinets; flooring; ceiling tiles; furnishings; manufactured housing; health care patient; common area furniture; and various industrial films applications.

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To view ValuEngine’s full report, visit ValuEngine’s official website.

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