Wells Fargo & Company recently issued a research note on Eastman Chemical (NYSE:EMN), stating that its price target has been decreased from $89.00 to $85.00. This adjustment suggests a potential upside of 10.55% from the stock’s current price, according to FlyOnTheWall reports.
On Friday, Eastman Chemical stock opened at $76.89. The company has a quick ratio of 0.61, indicating its ability to meet short-term obligations, a current ratio of 1.32, and a debt-to-equity ratio of 0.86. With a market cap of $9.12 billion and a PE ratio of 13.12, the stock’s performance indicators have fluctuated within the range of a 12-month low of $69.91 and a high of $92.21.
Further analysis reveals that Eastman Chemical operates as a specialty materials company in both the United States and international markets. Its Additives & Functional Products segment provides various products such as hydrocarbon resins, organic acid-based solutions, amine derivative-based building blocks, soil fumigants, fungicides, plant growth regulators, solvents, paint additives, specialty polymers, heat transfer fluids, aviation fluids, rubber additives and performance resins.
In their most recent quarterly earnings results announced on July 27th this year, Eastman Chemical reported earnings per share (EPS) of $1.99 for the quarter which exceeded the consensus estimate of $1.95 by $0.04 cents per share—an encouraging outcome for investors to consider over time.
Although the company experienced lower revenue than anticipated—$2.32 billion compared to analyst estimates of $2.59 billion—Eastman Chemical continues to maintain strong margins with a net margin of 7.21% and return on equity (ROE) figures showing 14.82%. Furthermore, it is worth noting that the firm’s revenue declined by 16.5% on a year-over-year basis.
Analysts as a collective are expecting Eastman Chemical to post earnings per share of 6.7 for the current fiscal year. This projection showcases their confidence in the company’s ability to withstand market challenges and deliver satisfactory results to shareholders.
In conclusion, Wells Fargo & Company’s downward revision of Eastman Chemical’s price target may suggest caution, but shareholders should also take into account the positive financial performance demonstrated by the company. With its diverse offering of specialty materials and continued efforts to navigate a changing market landscape, Eastman Chemical remains positioned for potential growth in the foreseeable future.
Disclaimer: This article is based on publicly available information and does not constitute financial advice. Investors should do their own research or consult with a professional advisor before making any investment decisions.
Evaluating Research Opinions and Institutional Engagement: Eastman Chemical (EMN) Analysis
In recent times, various research firms have expressed their opinions on the performance and outlook of Eastman Chemical (EMN). These firms include Citigroup, KeyCorp, StockNews.com, Piper Sandler, and Bank of America. Each firm has provided insights on EMN’s target price, rating, and overall consensus.
Citigroup raised their target price from $96.00 to $99.00 and assigned a “buy” rating to Eastman Chemical in a research report released on July 31st. Similarly, KeyCorp reduced their target price on EMN shares from $106.00 to $103.00 in a report published on July 11th. Meanwhile, StockNews.com initiated the coverage of Eastman Chemical and rated it as “hold” for investors on August 17th.
Piper Sandler changed their previous “overweight” rating to a “neutral” rating and set a price objective of $96.00 for EMN shares in a research note issued on August 1st. Lastly, Bank of America decreased their target price from $109.00 to $102.00 for Eastman Chemical in a research report dated June 22nd.
Overall, there are currently ten research analysts who have assigned a hold rating to EMN stock while seven have given it a buy rating. Bloomberg data reveals that Eastman Chemical holds an average consensus rating of “Hold” with an average price target of $94.60.
Turning our attention towards institutional investors and hedge funds’ activity surrounding the company’s stock, we observe varying patterns of engagement with Eastman Chemical among these entities.
For instance, Retirement Group LLC recently acquired a new position in Eastman Chemical during the first quarter with an approximate value of around $27,000. Additionally, Massmutual Trust Co. FSB ADV significantly increased its holdings in EMN by 71.5% during the same quarter; they now own 391 shares valued at $33,000.
Furthermore, Cornerstone Planning Group LLC also entered the picture during the second quarter by purchasing a new position in Eastman Chemical worth $33,000. Money Concepts Capital Corp took a different approach by raising its stake in EMN by an impressive 435.0% in the fourth quarter—a move that now values their holdings at $35,000.
Lastly, Stonebridge Capital Advisors LLC engaged with Eastman Chemical differently. They increased their position in the company by 134.0% during the second quarter and now possess 440 shares valued at $37,000.
It is noteworthy to mention that approximately 82.29% of Eastman Chemical’s stock is currently owned by institutional investors, indicating significant interest from this segment of the market.
In conclusion, Eastman Chemical has attracted diverse opinions from various research firms regarding its target price and rating. While some have raised their price targets and given it a favorable “buy” rating, others have reduced price targets or downgraded the stock to a “neutral” rating. The consensus rating for Eastman Chemical stands as “Hold” with an average price target of $94.60.
Additionally, institutional investors and hedge funds have shown both interest and caution in their engagement with EMN. Some have acquired new positions while others have significantly increased their holdings, highlighting potential confidence in the company’s performance. It will be interesting to observe how these dynamics unfold and impact Eastman Chemical’s future prospects moving forward.