O-I Glass, Inc. (NYSE:OI) experienced a significant increase in its stock price before the market opened on Wednesday, October 13, 2023, following a stronger than expected earnings report. The stock, which closed at $11.80 the previous day, opened at $13.12 and was last traded at $12.7770 with a trading volume of 401,383 shares.
The industrial products company reported earnings of $0.36 per share for the quarter, alongside revenue of $1.59 billion. Despite these positive figures, O-I Glass reported a negative net margin of 3.95% and a return on equity of 13.70%.
Analyst Ratings and Market Response
Several analysts have recently assessed O-I Glass shares, contributing to fluctuating market perceptions. On October 13, Truist Financial adjusted its price target for the stock from $21.00 to $17.00, maintaining a “buy” rating. Earlier, Zacks Research downgraded the stock from a “strong-buy” rating to a “hold” rating on September 25. Similarly, Wall Street Zen also downgraded its rating from “buy” to “hold” on October 3.
In contrast, Bank of America reaffirmed a “neutral” rating on July 9, increasing its price target from $15.00 to $17.00. The overall consensus among analysts reflects a “Moderate Buy” rating, with an average price target of $16.56. Currently, one analyst rates the stock as a Strong Buy, four have assigned a Buy rating, four have issued a Hold rating, and one has assigned a Sell rating.
Institutional Investment Trends
The trading activity surrounding O-I Glass has attracted the interest of various hedge funds. GAMMA Investing LLC significantly increased its stake by 79.3% in the first quarter, acquiring a total of 2,583 shares valued at approximately $30,000. Similarly, Wealth Enhancement Advisory Services LLC raised its holdings by 44.4% during the same period, now owning 16,444 shares worth about $189,000.
Other notable changes include Allspring Global Investments Holdings LLC, which increased its stake by 53.7%, and Teacher Retirement System of Texas, which entered a new position valued at around $259,000. The majority of O-I Glass shares, approximately 97.24%, are currently owned by institutional investors.
As of now, O-I Glass boasts a market capitalization of $2.08 billion and a price-to-earnings ratio of -8.17. The company’s current ratio stands at 1.24, with a quick ratio of 0.77 and a debt-to-equity ratio of 3.58.
O-I Glass, through its subsidiaries, specializes in the manufacture and sale of glass containers primarily for food and beverage manufacturers across the Americas, Europe, and other international markets. The company produces an array of glass containers for alcoholic beverages, including beer, spirits, flavored malt beverages, and wine.
This recent surge in stock price, driven by a solid earnings report, highlights the ongoing interest and activity surrounding O-I Glass as it navigates the challenges and opportunities within the industrial sector.
