Eastman Chemical Co. (NYSE:EMN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.
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 equities research analysts have also commented on EMN. RBC Capital Markets lowered shares of Eastman Chemical from an “outperform” rating to a “sector perform” rating and decreased their target price for the stock from $83.00 to $70.00 in a research report on Tuesday, August 2nd. SunTrust Banks Inc. restated a “neutral” rating and set a $66.00 target price on shares of Eastman Chemical in a research report on Tuesday, August 2nd. Nomura decreased their target price on shares of Eastman Chemical from $83.00 to $81.00 and set a “buy” rating on the stock in a research report on Monday, July 11th. JPMorgan Chase & Co. restated a “buy” rating on shares of Eastman Chemical in a research report on Friday, July 29th. Finally, Deutsche Bank AG decreased their target price on shares of Eastman Chemical from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, August 1st. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and eight have given a buy rating to the company. Eastman Chemical presently has an average rating of “Hold” and an average target price of $76.29.
Eastman Chemical (NYSE:EMN) traded down 1.44% during midday trading on Thursday, reaching $63.44. 1,503,710 shares of the company traded hands. Eastman Chemical has a 12 month low of $56.03 and a 12 month high of $78.79. The firm has a market capitalization of $9.37 billion, a PE ratio of 10.69 and a beta of 1.53. The company’s 50-day moving average price is $66.23 and its 200 day moving average price is $70.15.
Eastman Chemical (NYSE:EMN) last announced its quarterly earnings data on Thursday, July 28th. The company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.73 by $0.05. The firm earned $2.30 billion during the quarter, compared to analyst estimates of $2.36 billion. Eastman Chemical had a net margin of 9.63% and a return on equity of 24.40%. The business’s quarterly revenue was down 9.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.01 earnings per share. On average, equities analysts anticipate that Eastman Chemical will post $6.54 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Thursday, September 15th were issued a $0.46 dividend. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $1.84 dividend on an annualized basis and a yield of 2.86%. Eastman Chemical’s dividend payout ratio (DPR) is 30.98%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EMN. Acrospire Investment Management LLC bought a new position in Eastman Chemical during the first quarter worth approximately $108,000. Financial Architects Inc increased its position in Eastman Chemical by 8,181.8% in the second quarter. Financial Architects Inc now owns 1,822 shares of the company’s stock worth $123,000 after buying an additional 1,800 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Eastman Chemical by 22.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,965 shares of the company’s stock worth $133,000 after buying an additional 361 shares in the last quarter. Mizuho Asset Management Co. Ltd. increased its position in Eastman Chemical by 127.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,022 shares of the company’s stock worth $137,000 after buying an additional 1,133 shares in the last quarter. Finally, Evercore Wealth Management LLC increased its position in Eastman Chemical by 0.3% in the second quarter. Evercore Wealth Management LLC now owns 2,321 shares of the company’s stock worth $158,000 after buying an additional 7 shares in the last quarter. Institutional investors own 84.06% of the company’s stock.
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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