OMNOVA Solutions (OMN) Upgraded by ValuEngine to Sell

ValuEngine upgraded shares of OMNOVA Solutions (NYSE:OMN) from a strong sell rating to a sell rating in a research note issued to investors on Tuesday morning.

Shares of NYSE OMN opened at $7.84 on Tuesday. The firm has a market capitalization of $371.60 million, a P/E ratio of 14.53, a P/E/G ratio of 1.34 and a beta of 2.24. The company has a debt-to-equity ratio of 6.77, a current ratio of 2.07 and a quick ratio of 1.43. OMNOVA Solutions has a 1-year low of $7.36 and a 1-year high of $11.90.

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

OMNOVA Solutions declared that its Board of Directors has authorized a share buyback program on Wednesday, September 26th that authorizes the company to repurchase $20.00 million in shares. This repurchase authorization authorizes the specialty chemicals company to purchase up to 4.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of New York Mellon Corp boosted its stake in shares of OMNOVA Solutions by 0.6% during the 3rd quarter. Bank of New York Mellon Corp now owns 4,741,000 shares of the specialty chemicals company’s stock worth $46,699,000 after buying an additional 27,315 shares during the last quarter. BlackRock Inc. boosted its stake in shares of OMNOVA Solutions by 1.1% during the 3rd quarter. BlackRock Inc. now owns 3,342,736 shares of the specialty chemicals company’s stock worth $32,925,000 after buying an additional 35,937 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of OMNOVA Solutions by 0.4% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,246,167 shares of the specialty chemicals company’s stock worth $23,360,000 after buying an additional 9,996 shares during the last quarter. Renaissance Technologies LLC boosted its stake in shares of OMNOVA Solutions by 3.8% during the 2nd quarter. Renaissance Technologies LLC now owns 1,874,275 shares of the specialty chemicals company’s stock worth $19,492,000 after buying an additional 67,800 shares during the last quarter. Finally, Scopus Asset Management L.P. boosted its stake in shares of OMNOVA Solutions by 8.8% during the 2nd quarter. Scopus Asset Management L.P. now owns 1,150,000 shares of the specialty chemicals company’s stock worth $11,960,000 after buying an additional 93,092 shares during the last quarter. 91.53% of the stock is owned by hedge funds and other institutional investors.

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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