Zacks Investment Research lowered shares of Eastman Chemical Co. (NYSE:EMN) from a buy rating to a hold rating in a report released on Wednesday.
According to Zacks, “Eastman Chemical’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate. The company gained from strong growth of its high value products and its cost-reduction actions in the quarter. However, its sales fell year over year on lower pricing, and missed expectations. Eastman Chemical remains focused on cost-cutting 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. Eastman Chemical also remains committed to reduce debt and boost shareholder returns leveraging healthy free cash flows. However, 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.”
A number of other equities research analysts have also recently commented on EMN. Jefferies Group restated a buy rating and set a $88.00 target price on shares of Eastman Chemical in a research report on Friday, July 29th. JPMorgan Chase & Co. restated a buy rating on shares of Eastman Chemical in a research report on Friday, July 29th. Deutsche Bank AG dropped their target price on Eastman Chemical from $85.00 to $75.00 and set a buy rating on the stock in a research report on Monday, August 1st. Nomura set a $75.00 target price on Eastman Chemical and gave the company a buy rating in a research report on Monday, August 1st. Finally, TheStreet cut Eastman Chemical from a buy rating to a hold rating in a research report on Friday, July 29th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and nine have issued a buy rating to the company. The company presently has a consensus rating of Hold and an average target price of $77.87.
Shares of Eastman Chemical (NYSE:EMN) opened at 74.11 on Wednesday. Eastman Chemical has a 52 week low of $56.03 and a 52 week high of $78.79. The company has a market capitalization of $10.88 billion, a PE ratio of 12.81 and a beta of 1.51. The firm’s 50-day moving average price is $70.51 and its 200 day moving average price is $69.21.
Eastman Chemical (NYSE:EMN) last posted its earnings results on Thursday, October 27th. The company reported $1.86 EPS for the quarter, beating the Zacks’ consensus estimate of $1.67 by $0.19. Eastman Chemical had a return on equity of 23.59% and a net margin of 9.53%. The firm had revenue of $2.29 billion for the quarter, compared to analysts’ expectations of $2.30 billion. During the same period last year, the firm earned $1.84 EPS. The company’s quarterly revenue was down 6.5% on a year-over-year basis. Equities analysts predict that Eastman Chemical will post $6.75 EPS for the current year.
Several hedge funds have recently made changes to their positions in the company. Exxonmobil Investment Management Inc. TX increased its stake in shares of Eastman Chemical by 6.9% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 38,480 shares of the company’s stock worth $2,613,000 after buying an additional 2,491 shares in the last quarter. DNB Asset Management AS increased its stake in Eastman Chemical by 3.4% in the second quarter. DNB Asset Management AS now owns 12,336 shares of the company’s stock valued at $838,000 after buying an additional 400 shares during the period. British Columbia Investment Management Corp increased its stake in Eastman Chemical by 17.4% in the second quarter. British Columbia Investment Management Corp now owns 118,423 shares of the company’s stock valued at $8,041,000 after buying an additional 17,513 shares during the period. Washington Trust Bank increased its stake in Eastman Chemical by 5.7% in the second quarter. Washington Trust Bank now owns 17,621 shares of the company’s stock valued at $1,196,000 after buying an additional 945 shares during the period. Finally, Raymond James Trust N.A. increased its stake in Eastman Chemical by 5.7% in the second quarter. Raymond James Trust N.A. now owns 13,620 shares of the company’s stock valued at $925,000 after buying an additional 729 shares during the period. Institutional investors and hedge funds own 81.54% of the company’s stock.
Eastman Chemical Company Profile
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).