Eastman Chemical Co. (EMN) Cut to “Hold” at Zacks Investment Research
According to Zacks, “Estimates for Eastman Chemical have been stable lately. Eastman Chemical is faced with significant pricing and competitive pressures, which is expected to hurt its earnings in 2016. Moreover, challenging global economic conditions are affecting demand for some of the company’s products. The company is also exposed to currency translation risk. However, Eastman Chemical remains focused on costcutting and productivity actions amid a challenging operating environment. The company is looking to reduce at least $100 million of costs by the end of 2016. Further, the company should gain from its strategic acquisitions.”
Several other research firms have also commented on EMN. Morgan Stanley restated a hold rating on shares of Eastman Chemical in a research report on Thursday, June 16th. Royal Bank Of Canada lowered their price objective on Eastman Chemical from $85.00 to $83.00 and set an outperform rating on the stock in a research report on Monday, June 27th. Susquehanna started coverage on Eastman Chemical in a research report on Friday, July 1st. They issued a positive rating and a $90.00 price objective on the stock. Nomura lowered their price objective on Eastman Chemical from $83.00 to $81.00 and set a buy rating on the stock in a research report on Monday, July 11th. Finally, Jefferies Group restated a buy rating and issued a $88.00 price objective on shares of Eastman Chemical in a research report on Friday, July 29th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and eight have assigned a buy rating to the stock. Eastman Chemical has an average rating of Hold and an average price target of $76.29.
Shares of Eastman Chemical (NYSE:EMN) opened at 63.49 on Thursday. Eastman Chemical has a 12 month low of $56.03 and a 12 month high of $78.79. The company has a 50-day moving average of $65.89 and a 200 day moving average of $69.92. The company has a market cap of $9.38 billion, a PE ratio of 10.69 and a beta of 1.53.
Eastman Chemical (NYSE:EMN) last issued its quarterly earnings results on Thursday, July 28th. The company reported $1.68 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.73 by $0.05. Eastman Chemical had a return on equity of 24.40% and a net margin of 9.63%. The business earned $2.30 billion during the quarter, compared to analyst estimates of $2.36 billion. During the same quarter last year, the company posted $2.01 EPS. Eastman Chemical’s quarterly revenue was down 9.3% compared to the same quarter last year. On average, analysts anticipate that Eastman Chemical will post $6.54 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Thursday, September 15th were paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 2.90%. The ex-dividend date was Tuesday, September 13th. Eastman Chemical’s dividend payout ratio (DPR) is presently 30.98%.
Hedge funds have recently modified their holdings of the company. Boston Advisors LLC increased its stake in shares of Eastman Chemical by 1,926.9% in the second quarter. Boston Advisors LLC now owns 209,785 shares of the company’s stock worth $14,244,000 after buying an additional 199,435 shares during the period. Retirement Systems of Alabama increased its stake in shares of Eastman Chemical by 434.5% in the second quarter. Retirement Systems of Alabama now owns 405,273 shares of the company’s stock worth $27,518,000 after buying an additional 329,452 shares during the period. Nisa Investment Advisors LLC increased its stake in shares of Eastman Chemical by 18.7% in the second quarter. Nisa Investment Advisors LLC now owns 88,943 shares of the company’s stock worth $6,039,000 after buying an additional 13,985 shares during the period. Creative Planning increased its stake in shares of Eastman Chemical by 3.7% in the second quarter. Creative Planning now owns 6,690 shares of the company’s stock worth $454,000 after buying an additional 237 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of Eastman Chemical by 2.6% in the first quarter. Geode Capital Management LLC now owns 1,269,863 shares of the company’s stock worth $91,545,000 after buying an additional 32,172 shares during the period. 84.06% of the stock is owned by institutional investors and hedge funds.
About Eastman Chemical
Eastman Chemical Company (Eastman) is a specialty chemicals company that produces a range of advanced materials, chemicals and fibers. The Company operates through five segments: Additives & Functional Products (AFP), Adhesives & Plasticizers (A&P), Advanced Materials (AM), Fibers, and Specialty Fluids & Intermediates (SFI).
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