Zacks Investment Research downgraded shares of Eastman Chemical (NYSE:EMN) from a buy rating to a hold rating in a research report released on Friday.
According to Zacks, “Eastman Chemical has an impressive earnings surprise history for the trailing four quarters. The company remains focused on cost-cutting and productivity actions amid a challenging operating environment. Eastman Chemical should also gain from its strategic acquisitions. It also remains committed to reduce debt. However, Eastman Chemical continues to face pricing pressure. Hefty charges related to the Kingsport plant will also hit earnings in the fourth quarter. The company also faces raw material cost headwind and weakness in the Fibers unit. The company has also underperformed the industry it belongs to over the past six months.”
A number of other research firms have also commented on EMN. KeyCorp restated a buy rating and issued a $118.00 price objective (up from $108.00) on shares of Eastman Chemical in a research report on Monday, January 8th. JPMorgan Chase & Co. lifted their target price on shares of Eastman Chemical from $95.00 to $105.00 and gave the company an overweight rating in a research report on Monday, October 30th. Royal Bank of Canada reiterated a sector perform rating and set a $93.00 target price (up from $91.00) on shares of Eastman Chemical in a research report on Monday, October 30th. Wells Fargo & Co reiterated an outperform rating and set a $102.00 target price (up from $94.00) on shares of Eastman Chemical in a research report on Monday, October 30th. They noted that the move was a valuation call. Finally, UBS Group lifted their target price on shares of Eastman Chemical from $97.00 to $103.00 and gave the company a buy rating in a research report on Friday, October 27th. Ten research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average target price of $98.60.
Eastman Chemical (NYSE EMN) traded down $0.07 during mid-day trading on Friday, hitting $97.43. 887,400 shares of the stock were exchanged, compared to its average volume of 1,023,278. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.83 and a quick ratio of 0.94. Eastman Chemical has a one year low of $74.78 and a one year high of $98.24. The company has a market capitalization of $14,000.00, a price-to-earnings ratio of 14.14, a P/E/G ratio of 1.44 and a beta of 1.31.
Eastman Chemical (NYSE:EMN) last released its quarterly earnings data on Thursday, October 26th. The basic materials company reported $2.19 EPS for the quarter, beating analysts’ consensus estimates of $2.03 by $0.16. Eastman Chemical had a net margin of 10.89% and a return on equity of 22.77%. The company had revenue of $2.47 billion during the quarter, compared to analyst estimates of $2.35 billion. During the same period last year, the business earned $1.86 earnings per share. Eastman Chemical’s revenue was up 7.8% compared to the same quarter last year. analysts anticipate that Eastman Chemical will post 7.12 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 5th. Stockholders of record on Monday, December 18th were issued a $0.56 dividend. This represents a $2.24 dividend on an annualized basis and a dividend yield of 2.30%. This is a positive change from Eastman Chemical’s previous quarterly dividend of $0.51. The ex-dividend date of this dividend was Friday, December 15th. Eastman Chemical’s payout ratio is presently 32.51%.
In other news, SVP Perry Stuckey sold 5,200 shares of the business’s stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $92.12, for a total value of $479,024.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.14% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Pacer Advisors Inc. increased its stake in shares of Eastman Chemical by 8.1% in the second quarter. Pacer Advisors Inc. now owns 3,100 shares of the basic materials company’s stock worth $260,000 after buying an additional 232 shares during the period. Neuberger Berman Group LLC increased its stake in shares of Eastman Chemical by 1.5% in the second quarter. Neuberger Berman Group LLC now owns 18,285 shares of the basic materials company’s stock worth $1,536,000 after buying an additional 273 shares during the period. AXA increased its stake in shares of Eastman Chemical by 1.4% in the second quarter. AXA now owns 14,200 shares of the basic materials company’s stock worth $1,193,000 after buying an additional 200 shares during the period. Alliancebernstein L.P. increased its stake in shares of Eastman Chemical by 13.9% in the second quarter. Alliancebernstein L.P. now owns 326,255 shares of the basic materials company’s stock worth $27,402,000 after buying an additional 39,923 shares during the period. Finally, AJO LP increased its stake in shares of Eastman Chemical by 51.2% in the second quarter. AJO LP now owns 59,393 shares of the basic materials company’s stock worth $4,988,000 after buying an additional 20,105 shares during the period. Hedge funds and other institutional investors own 82.74% of the company’s stock.
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About Eastman Chemical
Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets.
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