Eastman Chemical (EMN) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research cut shares of Eastman Chemical (NYSE:EMN) from a buy rating to a hold rating in a report released on Friday morning.
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.”
Other analysts also recently issued reports about the stock. KeyCorp reaffirmed a buy rating and issued a $100.00 target price on shares of Eastman Chemical in a research report on Wednesday, October 4th. Jefferies Group reaffirmed a buy rating and issued a $96.00 target price on shares of Eastman Chemical in a research report on Tuesday, October 3rd. Goldman Sachs Group raised shares of Eastman Chemical from a neutral rating to a buy rating and upped their target price for the stock from $81.00 to $101.00 in a research report on Thursday, September 28th. Deutsche Bank upped their target price on shares of Eastman Chemical from $95.00 to $100.00 and gave the stock a buy rating in a research report on Tuesday, October 10th. Finally, UBS Group upped their target price on shares of Eastman Chemical from $97.00 to $103.00 and gave the stock a buy rating in a research report on Friday, October 27th. Ten investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. Eastman Chemical currently has a consensus rating of Hold and an average target price of $98.60.
Eastman Chemical (NYSE:EMN) last issued its quarterly earnings data on Thursday, October 26th. The basic materials company reported $2.19 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.03 by $0.16. The business had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.35 billion. Eastman Chemical had a net margin of 10.89% and a return on equity of 22.77%. The company’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.86 EPS. sell-side analysts expect that Eastman Chemical will post 7.12 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, January 5th. Investors of record on Monday, December 18th were paid a $0.56 dividend. This is a boost from Eastman Chemical’s previous quarterly dividend of $0.51. The ex-dividend date was Friday, December 15th. This represents a $2.24 dividend on an annualized basis and a yield of 2.30%. Eastman Chemical’s payout ratio is presently 32.51%.
In related news, SVP Perry Stuckey sold 5,200 shares of the company’s stock in a transaction dated 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 legal filing with the SEC, which is available at this hyperlink. Insiders own 1.14% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the business. Janus Henderson Group PLC lifted its stake in Eastman Chemical by 38.6% during the 2nd quarter. Janus Henderson Group PLC now owns 25,832 shares of the basic materials company’s stock valued at $2,170,000 after acquiring an additional 7,199 shares during the period. Laurion Capital Management LP lifted its stake in Eastman Chemical by 689.5% during the 2nd quarter. Laurion Capital Management LP now owns 87,034 shares of the basic materials company’s stock valued at $7,310,000 after acquiring an additional 76,010 shares during the period. Private Advisor Group LLC lifted its stake in Eastman Chemical by 106.7% during the 3rd quarter. Private Advisor Group LLC now owns 8,697 shares of the basic materials company’s stock valued at $783,000 after acquiring an additional 4,490 shares during the period. Personal Capital Advisors Corp lifted its stake in Eastman Chemical by 3.1% during the 3rd quarter. Personal Capital Advisors Corp now owns 221,806 shares of the basic materials company’s stock valued at $20,071,000 after acquiring an additional 6,675 shares during the period. Finally, BlackRock Inc. lifted its stake in Eastman Chemical by 6.3% during the 2nd quarter. BlackRock Inc. now owns 12,186,134 shares of the basic materials company’s stock valued at $1,023,514,000 after acquiring an additional 717,506 shares during the period. Institutional investors and hedge funds own 82.74% of the company’s stock.
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Eastman Chemical Company Profile
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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