On December 31, 2024, Hotchkis & Wiley executed a significant transaction involving Olin Corp, a prominent player in the chemicals industry. The firm added 2,092,380 shares of Olin Corp to its portfolio, marking a 23.67% increase in its position. This strategic move underscores Hotchkis & Wiley's commitment to identifying undervalued opportunities with substantial growth potential. The transaction was executed at a price of $33.8 per share, bringing the firm's total holding in Olin Corp to 10,931,368 shares.

Hotchkis & Wiley: A Profile of Value Investing Excellence

Established in Los Angeles in 1980, Hotchkis & Wiley has built a reputation for its focus on undervalued companies with high appreciation potential. The firm adheres to a value investing philosophy, emphasizing tangible assets, sustainable cash flow, and business performance improvement. With a portfolio equity of $30.04 billion, Hotchkis & Wiley's top holdings include Telefonaktiebolaget L M Ericsson (ERIC, Financial), F5 Inc (FFIV, Financial), APA Corp (APA, Financial), $Citigroup Inc(C-N)$ (C, Financial), and Wells Fargo & Co (WFC, Financial). The firm's expertise in financial services and technology sectors further solidifies its standing in the investment community.

Olin Corp: A Leader in Chemical Manufacturing

Olin Corp, a USA-based company, is a key player in the manufacturing and sale of chemicals and chemical-based products. The company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The majority of its revenue is generated from the United States, with the Chlor Alkali Products and Vinyls segment being the primary revenue driver. Olin Corp's market capitalization stands at $3.2 billion, with a current stock price of $27.68. Despite recent challenges, the stock is significantly undervalued with a GF Value of $49.02, indicating a price to GF Value ratio of 0.56.

Impact of the Stock Transaction

The recent acquisition of Olin Corp shares by Hotchkis & Wiley impacted the firm's portfolio by 0.23%, with Olin Corp now representing 1.22% of the firm's portfolio and 9.40% of the firm's holdings in the stock. This transaction highlights the firm's strategic focus on undervalued stocks with potential for appreciation. Despite a -18.11% price change since the transaction and a -17.42% year-to-date change, Hotchkis & Wiley's decision to increase its stake in Olin Corp reflects confidence in the company's long-term prospects.

Financial Metrics and Valuation of Olin Corp

Olin Corp's financial metrics reveal a mixed picture. The company has a [market capitalization](https://www.gurufocus.com/term/market-cap/OLN) of $3.2 billion and a current stock price of $27.68. The stock's [GF-Score](https://www.gurufocus.com/term/gf-score/OLN) is 69/100, suggesting poor future performance potential. The [balance sheet](https://www.gurufocus.com/term/rank-balancesheet/OLN) rank is 5/10, and the [profitability rank](https://www.gurufocus.com/term/rank-profitability/OLN) is 6/10. The [Piotroski F-Score](https://www.gurufocus.com/term/fscore/OLN) is 4, and the [Altman Z score](https://www.gurufocus.com/term/zscore/OLN) is 1.86, indicating potential financial distress. Despite these challenges, the stock's [operating margin](https://www.gurufocus.com/term/operating-margin/OLN) growth remains stable at 0.00%.

Performance and Growth Indicators

Olin Corp's stock has faced headwinds, with a -18.11% price change since the transaction and a -17.42% year-to-date change. The company's [growth rank](https://www.gurufocus.com/term/rank-growth/OLN) is 4/10, and the [momentum rank](https://www.gurufocus.com/term/rank-momentum/OLN) is 4/10, reflecting challenges in maintaining growth momentum. Despite these indicators, the stock's [GF Value Rank](https://www.gurufocus.com/term/rank-gf-value/OLN) of 4/10 suggests potential undervaluation, offering opportunities for long-term investors.

Other Gurus Holding Olin Corp

Besides Hotchkis & Wiley, other notable investors in Olin Corp include Yacktman Asset Management (Trades, Portfolio), Richard Pzena (Trades, Portfolio), and Yacktman Fund (Trades, Portfolio). Among these investors, Hotchkis & Wiley Capital Management LLC holds the largest share percentage of Olin Corp, underscoring the firm's confidence in the company's future prospects. This collective interest from prominent investors highlights Olin Corp's potential as a valuable addition to diversified portfolios.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.