Orion Insiders Add US$1.06m to Holdings, Signaling Bullish Sentiment

Orion Engineered Carbons (OEC) insiders have added US$1.06 million to their holdings, signaling a bullish sentiment towards the company's prospects. The recent insider transactions, along with the company's strong financial performance and positive outlook, suggest that the stock is undervalued and has significant potential for future growth.

Orion's CFO, Jeffrey Glajch, and Senior Vice President of Global Operations, Carlos Quinones, purchased shares in the trading window following the fourth quarter and full-year results. Glajch bought 10,000 shares at $23.81 per share, with a total transaction value of $238,185, while Quinones bought 3,800 shares at $23.98 per share, with a total transaction value of $91,124. These purchases contributed to Fintel's bullish officer sentiment score of 85.81, ranking OEC in the top ~1% out of 11,833 screened global securities for the highest levels of officer buying activity.



The insider buying activity aligns positively with Orion's recent financial performance. The company reported sales of $462 million in the fourth quarter, beating market expectations by 5%. Orion's adjusted EBITDA of $65 million was 16% above analyst estimates, and adjusted net income rose from $10.7 million in 2021 to $15.7 million in the final quarter of 2022, surpassing analyst forecasts by 10 cents per share. For 2023, Orion's management expects to grow adjusted EBITDA from $312.3 million in 2021 to a range of $350 to $380 million and adjusted EPS from $1.96 in 2021 to $2.30 to $2.60 per share.



The insider transactions have also contributed to a bullish institutional sentiment score of 84.82, ranking OEC in the top 30% out of 35,763 global securities for the highest levels of institutional accumulation in the last 90 days. This high score is a result of significant institutional buying activity, with a total of 368 institutions on the register collectively owning 63.1 million shares. Some of the largest holders include Pzena Investment Management LLC, BlackRock Inc, T. Rowe Price Investment Management Inc., and Vanguard Group Inc.



Analysts have a bullish outlook on the stock, with a consensus target price of $33.15, indicating a potential rally of another 40% in 2023. Credit Suisse initiated coverage on the stock with an outperform recommendation and a $31 target price. The average rating from analysts polled by S&P Capital IQ is a buy, with price targets ranging from $26 to $40.

In conclusion, the insider transactions at Orion Engineered Carbons, along with the company's strong financial performance and bullish analyst sentiment, suggest that the stock is undervalued and has significant potential for future growth. The insiders' confidence in the company's prospects, as evidenced by their buying activity, further supports this view. Investors should consider Orion Engineered Carbons as a potential addition to their portfolios, given the company's strong fundamentals and positive outlook.