Zacks Investment Research lowered shares of Eastman Chemical (NYSE:EMN) from a buy rating to a hold rating in a research report sent to investors 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.”
Several other analysts also recently issued reports on the stock. KeyCorp reaffirmed a buy rating and set a $118.00 price objective (up from $108.00) on shares of Eastman Chemical in a report on Monday, January 8th. Cowen reaffirmed an outperform rating and set a $106.00 price objective (up from $92.00) on shares of Eastman Chemical in a report on Friday, December 8th. Tudor Pickering assumed coverage on shares of Eastman Chemical in a report on Tuesday, November 14th. They set a hold rating for the company. JPMorgan Chase & Co. upped their price objective on shares of Eastman Chemical from $95.00 to $105.00 and gave the stock an overweight rating in a report on Monday, October 30th. Finally, Royal Bank of Canada reaffirmed a sector perform rating and set a $93.00 price objective (up from $91.00) on shares of Eastman Chemical in a report on Monday, October 30th. Ten investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The company presently has an average rating of Hold and an average target price of $98.60.
Eastman Chemical (NYSE:EMN) last posted its earnings results on Thursday, October 26th. The basic materials company reported $2.19 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.03 by $0.16. The company had revenue of $2.47 billion during 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 revenue for the quarter was up 7.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.86 earnings per share. sell-side analysts predict that Eastman Chemical will post 7.12 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, January 5th. Shareholders of record on Monday, December 18th were issued a $0.56 dividend. The ex-dividend date was Friday, December 15th. This is an increase from Eastman Chemical’s previous quarterly dividend of $0.51. This represents a $2.24 dividend on an annualized basis and a yield of 2.30%. Eastman Chemical’s dividend payout ratio is 32.51%.
In other Eastman Chemical news, SVP Perry Stuckey sold 5,200 shares of the stock in a transaction 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 filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.14% of the stock is owned by corporate insiders.
A number of institutional investors have recently modified their holdings of the business. RNC Capital Management LLC boosted its holdings in Eastman Chemical by 0.5% in the 2nd quarter. RNC Capital Management LLC now owns 3,278 shares of the basic materials company’s stock valued at $275,000 after purchasing an additional 15 shares during the period. Veritable L.P. boosted its holdings in Eastman Chemical by 1.0% in the 2nd quarter. Veritable L.P. now owns 2,776 shares of the basic materials company’s stock valued at $233,000 after purchasing an additional 27 shares during the period. Mariner Wealth Advisors LLC boosted its holdings in Eastman Chemical by 2.2% in the 2nd quarter. Mariner Wealth Advisors LLC now owns 5,461 shares of the basic materials company’s stock valued at $459,000 after purchasing an additional 117 shares during the period. First Allied Advisory Services Inc. boosted its holdings in Eastman Chemical by 0.8% in the 2nd quarter. First Allied Advisory Services Inc. now owns 18,847 shares of the basic materials company’s stock valued at $1,588,000 after purchasing an additional 155 shares during the period. Finally, AXA boosted its holdings in Eastman Chemical by 1.4% in the 2nd quarter. AXA now owns 14,200 shares of the basic materials company’s stock valued at $1,193,000 after purchasing an additional 200 shares during the period. 82.74% of the stock is owned by hedge funds and other institutional investors.
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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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