O-I Glass (NYSE:OI), Inc., a leading manufacturer of glass containers, has announced a temporary suspension of trading under its employee benefit plans. The blackout period, which affects the company's 401(k) Plans, is due to a change in the investment fund-trading platform.
Starting December 23, 2024, participants will not be able to modify investment elections or receive distributions until the week of January 19, 2025.
This trading halt, communicated to the participants on Monday, is in line with regulatory requirements under the Sarbanes-Oxley Act. Additionally, a notice was sent today to the company's directors and executive officers, informing them of restrictions on trading company securities during this blackout period.
The notice to directors and executive officers was provided in compliance with the Securities Exchange Act of 1934, following the initial communication to the 401(k) Plan participants earlier this week. The company's common stock is listed on the New York Stock Exchange under the symbol NYSE:OI.
This information is based on a press release statement and the documents filed with the SEC. The details of the blackout period and the restrictions on trading are outlined in the notice attached as Exhibit 99.1 to the filing. O-I Glass, headquartered in Perrysburg, Ohio, operates under the industrial classification of glass containers and is incorporated in Delaware.
In other recent news, O-I Glass has been navigating a challenging market environment, as indicated by a series of analyst adjustments. Barclays (LON:BARC), Truist Securities, and Loop Capital have all revised their price targets for the company.
Barclays and Loop Capital reduced their targets to $13 and $12 respectively, while Truist Securities cut its target to $15. Conversely, Baird Equity Research maintained an Outperform rating with an $18 target.
O-I Glass recently reported an adjusted net loss of $0.04 per share for Q3 2024, a significant decline from the $0.80 per share reported in the same quarter of the previous year. This loss was attributed to an 18% cut in production due to sluggish demand. The company has revised its full-year adjusted earnings estimate to $0.70 to $0.80 per share.
Despite these challenges, O-I Glass remains optimistic about its recovery prospects, backed by its "Fit To Win" program. The company anticipates the initiative will contribute to a projected 2025 EBITDA of approximately $1.25 billion.
O-I Glass has also announced plans to close approximately 4% of its capacity, targeting plants that generate negative economic profit. These are among the recent developments for O-I Glass.
InvestingPro Insights
As O-I Glass, Inc. (NYSE:OI) navigates through this temporary suspension of trading under its employee benefit plans, investors might find additional context from recent financial data and analyst insights valuable. According to InvestingPro, O-I Glass currently operates with a market capitalization of $2.03 billion. The company's revenue for the last twelve months as of Q3 2023 stood at $6.64 billion, although it experienced a revenue decline of 7.18% during this period.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a sign of confidence in the company's future prospects. This is particularly noteworthy given the current trading restrictions on directors and executive officers during the blackout period.
Another InvestingPro Tip suggests that net income is expected to grow this year. This positive outlook aligns with the analyst prediction that the company will be profitable this year, despite not being profitable over the last twelve months. These projections could provide some reassurance to investors during the temporary trading suspension.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into O-I Glass's financial health and market position.
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