Steven Cohen (Trades, Portfolio) of Point72 Asset Management increased his stake in Olin Corp. (OLN, Financial) on Sept. 18 by about 22%, three days after the company's shareholders approved a merger with certain business segments of Dow Chemical Co. (DOW, Financial).
Cohen purchased 894,539 shares for $18.05 per share, bringing his stake to a total of 4,912,822 shares. He now owns 6.34% of the company. The graph below shows Cohen’s holding history in the company.
Olin is a chemical distributor that has been involved in the U.S. chlor alkali industry for more than 100 years. It also manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. The Winchester segment includes products such as sporting ammunition, small caliber military ammunition and industrial cartridges.
On Sept. 15, Olin announced it would merge with Dow Chemical's U.S. Chlor-Alkali and Vinyl, Global Chlorinated Organics and Global Epoxy businesses.
Olin’s stock price has declined 32% over the past year and closed at $18.04 at the end of trading on Monday. It currently trades at 15 times earnings, which is slightly below the industry median of 17.9.
In 2014, the company earned $1.33 per share, down from $2.21 per share the year before.
Olin’s dividend yield is close to its five-year high at 4.45%, with a payout ratio of 67%.
One of the most successful hedge fund managers in history, Cohen shut down his former fund SAC Capital in 2014 after it pled guilty to insider trading. Cohen rebranded the fund into Point72, a family office that manages Cohen’s own money and that of eligible employees.
View Steven Cohen (Trades, Portfolio)’s latest stock picks here. Not a Premium Member of GuruFocus? Try it free for 7 days.
