Huntsman (NYSE:HUN) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Huntsman (NYSE:HUN) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $37.00 price target on the basic materials company’s stock.

According to Zacks, “Earnings estimates for Huntsman for the fourth quarter have been decreasing over the past month. It benefits from its investment in downstream businesses and differentiated product innovation. It is committed to expand its downstream specialty and formulation businesses. It is also shifting its methylene diphenyl diisocyanate (MDI) business from components to differentiated systems that have higher margins. Acquisitions are also expected to offer significant synergies. It remains focused on generating healthy cash flows and has a strong balance sheet. It is also committed to reduce debt using strong cash flows. However, the Advanced Materials unit remains exposed to softness in the aerospace market. The company is also facing challenges in automotive due to the chip shortage. Higher raw material costs are also likely to weigh on its margins.”

Several other analysts have also recently commented on the stock. KeyCorp raised their price objective on shares of Huntsman from $38.00 to $41.00 and gave the company an overweight rating in a research note on Monday, January 10th. Morgan Stanley raised their target price on shares of Huntsman from $40.00 to $47.00 and gave the company an overweight rating in a report on Tuesday. The Goldman Sachs Group upgraded shares of Huntsman from a neutral rating to a buy rating and raised their target price for the company from $40.00 to $43.00 in a report on Wednesday, December 15th. Royal Bank of Canada raised their target price on shares of Huntsman from $39.00 to $45.00 and gave the company an outperform rating in a report on Wednesday, November 10th. Finally, Stifel Nicolaus raised their target price on shares of Huntsman from $55.00 to $59.00 and gave the company a buy rating in a report on Tuesday, November 16th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, Huntsman has a consensus rating of Buy and a consensus price target of $41.92.

Shares of NYSE HUN opened at $38.26 on Tuesday. The company has a quick ratio of 1.19, a current ratio of 1.92 and a debt-to-equity ratio of 0.40. Huntsman has a 52 week low of $24.09 and a 52 week high of $38.51. The firm has a 50-day moving average price of $33.59 and a 200 day moving average price of $29.93. The stock has a market capitalization of $8.34 billion, a price-to-earnings ratio of 10.78 and a beta of 1.27.

Huntsman (NYSE:HUN) last announced its quarterly earnings data on Thursday, October 28th. The basic materials company reported $1.08 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.93 by $0.15. Huntsman had a net margin of 10.12% and a return on equity of 18.10%. The firm had revenue of $2.29 billion during the quarter, compared to analysts’ expectations of $2.04 billion. During the same quarter last year, the business earned $0.32 earnings per share. The business’s revenue for the quarter was up 51.3% compared to the same quarter last year. Equities research analysts expect that Huntsman will post 3.5 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, December 31st. Stockholders of record on Wednesday, December 15th were issued a dividend of $0.188 per share. The ex-dividend date of this dividend was Tuesday, December 14th. This is an increase from Huntsman’s previous quarterly dividend of $0.19. This represents a $0.75 dividend on an annualized basis and a dividend yield of 1.97%. Huntsman’s payout ratio is 21.13%.

Several hedge funds and other institutional investors have recently modified their holdings of HUN. Starboard Value LP purchased a new stake in shares of Huntsman during the third quarter worth about $343,189,000. FMR LLC grew its holdings in Huntsman by 87.2% in the second quarter. FMR LLC now owns 8,590,940 shares of the basic materials company’s stock valued at $227,832,000 after purchasing an additional 4,002,588 shares during the period. Franklin Resources Inc. grew its holdings in Huntsman by 1,587.4% in the second quarter. Franklin Resources Inc. now owns 3,210,641 shares of the basic materials company’s stock valued at $85,146,000 after purchasing an additional 3,020,373 shares during the period. Atlantic Investment Management Inc. purchased a new stake in Huntsman in the second quarter valued at approximately $53,439,000. Finally, UBS Group AG grew its holdings in Huntsman by 699.0% in the third quarter. UBS Group AG now owns 1,672,910 shares of the basic materials company’s stock valued at $49,502,000 after purchasing an additional 1,463,534 shares during the period. Institutional investors and hedge funds own 83.96% of the company’s stock.

About Huntsman

Huntsman Corp. engages in the manufacturing of differentiated organic chemical products. It operates through the following segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment manufactures and markets polyurethane chemicals, including MDI products, PO, polyols, PG, TPU, aniline, and MTBE.

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