52K Reasons To Be Bullish On Owens-Corning Stock

Disclosed in the latest SEC filing, a significant insider purchase on August 12, involves Michelle Collins, Director at Owens-Corning (NYSE:OC).

What Happened: Collins demonstrated confidence in Owens-Corning by purchasing 365 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $52,516.

The latest update on Wednesday morning shows Owens-Corning shares up by 0.01%, trading at $149.54.

About Owens-Corning

Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with four reportable segments: Composites, Insulation, Doors, and Roofing. It generates maximum revenue from the Roofing segment. Its Roofing segment laminate and strip asphalt roofing shingles, roofing components, synthetic packaging materials, and oxidized asphalt. It meets the growing demand for longer-lasting, aesthetically attractive laminate products with modest capital investment. Geographically the company generates the majority of its revenue from the United States.

Owens-Corning's Economic Impact: An Analysis

Revenue Growth: Owens-Corning's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 10.01%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Evaluating Earnings Performance:

  • Gross Margin: With a low gross margin of 31.23%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

  • Earnings per Share (EPS): Owens-Corning's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 4.27.

Debt Management: With a below-average debt-to-equity ratio of 1.16, Owens-Corning adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

  • Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.3 is lower than the industry average, indicating potential undervaluation for the stock.

  • Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.1, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Owens-Corning's EV/EBITDA ratio at 9.34 suggests potential undervaluation, falling below industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Owens-Corning's Insider Trades.

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