Now Is A Suitable Moment For A Long-Term Purchase Of PolyOne Corporation (NYSE: POL)


    BlackRock Fund Advisors recently announced the acquisition of new stake in PolyOne Corporation (NYSE:POL). The institutional investor has increased its shareholding in the Basic Materials company by 14.07% to 10.08 million shares with purchase of 1.24 million shares. This fresh investment now brings its stake to 11.03% valued currently at $249.86 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.33 million to 9.15 million shares. And Wells Capital Management, Inc. has lifted its position by 72.49% or 1.65 million shares – to 3.93 million shares.

    With over 0.5 million PolyOne Corporation (POL) shares trading Thursday and a closing price of $24.35 on the day, the dollar volume was approximately $12.26 million. The shares have shown a negative weekly performance of -4.36% and its price on 07/09/20 lost nearly -4.51%. Currently, there are 91.40M common shares owned by the public and among those 90.43M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for POL have a consensus price objective of $29.70. The analysts have set the share’s price value over the next 12 months at a high of $35.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the PolyOne Corporation stock is 2.10 for the next 12 months. The average price target is 18.01% above its last price level and an upside to the estimated low will see the stock gain 2.6% over that period. But an upside of 30.43% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

    Insiders at the company have transacted a total of 75 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 66 of these insider trades were purchases, accounting for 226,052 shares. Insider sales of the common stock occurred on 9 occasions, with total insider shares sold totaling 25,882 shares.

    The top 3 mutual fund holders in PolyOne Corporation are Wells Fargo Special Small Cap Val, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Wells Fargo Special Small Cap Val owns 2.67 million shares of the company’s stock, all valued at over $66.28 million. The company bought an additional 22000.0 shares recently to bring their total holdings to about 2.93% of the shares outstanding. Vanguard Total Stock Market Index sold 19509.0 shares to see its total holdings shrink to 2.58 million shares valued at over $63.84 million and representing 2.82% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 5150.0 shares to bring its total holdings to over 2.47 million shares at a value of $61.25 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.71% of the shares outstanding.

    Shares of PolyOne Corporation (NYSE: POL) opened at $25.50, down $0.0 from a prior closing price of $25.50. However, the script later closed the day at $24.35, down -4.51%. The company’s stock has a 5-day price change of -4.36% and 18.61% over the past three months. POL shares are trading -33.81% year to date (YTD), with the 12-month market performance down to -18.91% lower. It has a 12-month low price of $8.69 and touched a high of $37.33 over the same period. Currently, 0.5 million shares have been traded, compared to an average intraday trading volume of 846.38K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.82%, -1.19%, and -13.21% respectively.

    Institutional ownership of PolyOne Corporation (NYSE: POL) shares accounts for 94.80% of the company’s 91.40M shares outstanding. Mutual fund holders own 42.04%, while other institutional holders and individual stakeholders account for 52.88% and 4.28% respectively.

    It has a market capitalization of $2.17B and a beta (3y monthly) value of 1.87. The stock’s trailing 12-month PE ratio is 22.74, while the earnings-per-share (ttm) stands at $1.07. The company has a PEG of 5.17 and a Quick Ratio of 2.50 with the debt-to-equity ratio at 0.80. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.99% over the week and 4.60% over the month.

    Analysts forecast that PolyOne Corporation (POL) will achieve an EPS of $0.27 for the current quarter, $0.35 for the next quarter and $1.92 for 2021. The lowest estimate earnings-per-share for the quarter is $0.21 while analysts give the company a high EPS estimate of $0.37. Comparatively, EPS for the current quarter was $0.74 a year ago. Earnings per share for the fiscal year are expected to decrease by -8.90%, and 32.48% over the next financial year. EPS should grow at an annualized rate of 4.40% over the next five years, compared to 3.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate PolyOne Corporation (POL) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 3 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the POL, a number of firms have released research notes about the stock. Stifel stated their Hold rating for the stock in a research note on June 16, 2020. Morgan Stanley coverage for the PolyOne Corporation (POL) stock in a research note released on May 28, 2020 offered a Overweight rating with a price target of $30. Stifel was of a view on March 23, 2020 that the stock is Buy, while Wells Fargo gave the stock Overweight rating on January 14, 2020 $42. Wells Fargo on their part issued Market Perform rating on October 16, 2019.


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