Eastman Chemical (NYSE:EMN) Reaches New 12-Month Low After Earnings Miss

Key Points

• Eastman Chemical's shares hit a new 52-week low of $61.48 following a quarterly earnings report that missed expectations, with earnings per share at $1.60 compared to the consensus estimate of $1.72.
• Despite being downgraded in price targets by several analysts, Eastman has a consensus rating of "Moderate Buy" from analysts, with an average price target of $97.08.
• In the second quarter, various hedge funds increased their stakes in Eastman Chemical, reflecting investor confidence with 83.65% of the stock now owned by institutional investors.

Eastman Chemical Company (NYSE:EMN - Get Free Report) shares reached a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $63.31 and last traded at $61.48, with a volume of 17890 shares. The stock had previously closed at $72.61.

The basic materials company reported $1.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.72 by ($0.12). Eastman Chemical had a net margin of 9.85% and a return on equity of 16.59%. The business had revenue of $2.29 billion for the quarter, compared to analysts' expectations of $2.32 billion. During the same period in the prior year, the business earned $2.15 earnings per share. The company's revenue for the quarter was down 3.2% compared to the same quarter last year.

Wall Street Analyst Weigh In

EMN has been the subject of several research reports. Mizuho upgraded Eastman Chemical from a "neutral" rating to an "outperform" rating and set a $105.00 price target for the company in a research note on Thursday, April 3rd. Citigroup upgraded Eastman Chemical from a "neutral" rating to a "buy" rating and cut their price target for the stock from $105.00 to $101.00 in a research note on Friday, April 4th. Morgan Stanley cut their price target on Eastman Chemical from $125.00 to $115.00 and set an "overweight" rating for the company in a research note on Monday, April 28th. Barclays cut their target price on Eastman Chemical from $108.00 to $85.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 29th. Finally, Wells Fargo & Company cut their target price on Eastman Chemical from $125.00 to $90.00 and set an "overweight" rating for the company in a research note on Wednesday, April 9th. Six analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $97.08.

Hedge Funds Weigh In On Eastman Chemical

A number of large investors have recently modified their holdings of the company. Curat Global LLC raised its holdings in shares of Eastman Chemical by 33.3% during the 2nd quarter. Curat Global LLC now owns 1,200 shares of the basic materials company's stock valued at $90,000 after buying an additional 300 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of Eastman Chemical by 19.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 67,112 shares of the basic materials company's stock valued at $5,066,000 after buying an additional 10,813 shares in the last quarter. MQS Management LLC purchased a new position in Eastman Chemical in the 2nd quarter worth approximately $395,000. Kornitzer Capital Management Inc. KS increased its stake in Eastman Chemical by 46.2% in the 2nd quarter. Kornitzer Capital Management Inc. KS now owns 148,358 shares of the basic materials company's stock worth $11,076,000 after purchasing an additional 46,915 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its stake in Eastman Chemical by 107.3% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 3,195 shares of the basic materials company's stock worth $239,000 after purchasing an additional 1,654 shares during the period. 83.65% of the stock is owned by hedge funds and other institutional investors.

Eastman Chemical Stock Down 17.3%

The company has a current ratio of 1.72, a quick ratio of 0.79 and a debt-to-equity ratio of 0.80. The stock has a 50 day simple moving average of $78.15 and a 200 day simple moving average of $84.81. The firm has a market capitalization of $6.94 billion, a PE ratio of 7.67, a PEG ratio of 2.11 and a beta of 1.22.

Eastman Chemical Company Profile

Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids.

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