Owens Corning’s Board Clears 12M Share Repurchase Ahead Of Investor Day — Stock Unmoved Pre-Market

Owens Corning (OC) unveiled a new board authorization on Wednesday to buy back up to 12 million shares of its common stock — an expansion of its existing program — ahead of its annual investor day.

However, the company’s stock remained flat in pre-market trade.

“The additional share repurchase authorization reflects the earnings power of our company and confidence in our ability to consistently generate strong free cash flow,” said CEO Brian Chambers. “We remain committed to our long-term capital allocation strategy and returning free cash flow to shareholders over time.”

Owens Corning said that this authorization is in addition to the previously announced share repurchase program in which approximately 5.7 million shares remained available for repurchase as of March 31.

The announcement comes ahead of the company’s annual investor day, scheduled for 9:00 a.m. ET. 

Last week, the building materials company reported strong first-quarter (Q1) earnings of $2.97, beating Wall Street’s estimates of $2.87. Its revenue rose 25% year-on-year (YoY) to $2.53 million versus the consensus estimate of $2.51 million. 

Management also confirmed that the previously announced sale of its glass reinforcements business remains on track to close in 2025 – a move intended to sharpen the company’s focus on its core building products segment.

However, the company saw several price target cuts on a weak second-quarter (Q2) outlook. According to RBC Capital, which lowered its price target to $184 from $199 with an ‘Outperform’ rating, the weaker guidance reflects lower demand across segments, tempering in insulation pricing, and the impact of tariffs.

On Tuesday, Truist lowered its price target on Owen Cornin’s stock to $150 from $165 and kept a ‘Hold’ rating on the shares. 

The brokerage noted that while the stock has recovered modestly since the decline that came after its earnings, the company's markets are mostly weak, with pricing in insulation and roofing under pressure.

The average price target on the company’s shares currently stands at $167.96, representing a potential upside of 17%, according to Koyfin data.

Owen Corning’s stock is down 16% this year and has fallen over 19% over the past 12 months.

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