Eastman Chemical (NYSE:EMN) Shares Gap Up - What's Next?

Key Points

• Eastman Chemical's shares gapped up before the market opened, rising from a previous close of $68.18 to an opening price of $70.43.
• Despite the recent increase in stock price, analysts have lowered their target prices for Eastman Chemical, with Citigroup setting it at $68.00 and Goldman Sachs at $65.00, while maintaining a "Buy" or "Neutral" rating.
• The company announced a quarterly dividend of $0.83 per share, representing a 4.8% dividend yield and a payout ratio of 46.63%.

Shares of Eastman Chemical Company (NYSE:EMN - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $68.18, but opened at $70.43. Eastman Chemical shares last traded at $70.43, with a volume of 122,151 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Citigroup dropped their target price on shares of Eastman Chemical from $90.00 to $68.00 and set a "buy" rating for the company in a report on Monday, August 4th. Mizuho cut their target price on Eastman Chemical from $92.00 to $80.00 and set an "outperform" rating for the company in a research report on Friday, August 1st. Wells Fargo & Company lowered their price target on Eastman Chemical from $90.00 to $70.00 and set an "overweight" rating on the stock in a report on Monday, August 4th. The Goldman Sachs Group cut their price objective on shares of Eastman Chemical from $87.00 to $65.00 and set a "neutral" rating for the company in a report on Thursday, August 7th. Finally, UBS Group reduced their price objective on shares of Eastman Chemical from $107.00 to $101.00 and set a "buy" rating on the stock in a research report on Wednesday, July 9th. Eight investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $87.00.

Eastman Chemical Stock Up 2.4%

The firm has a market cap of $8.02 billion, a P/E ratio of 9.78, a price-to-earnings-growth ratio of 6.58 and a beta of 1.21. The company's 50-day simple moving average is $72.49 and its 200 day simple moving average is $80.59. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.68 and a quick ratio of 0.78.

Eastman Chemical (NYSE:EMN - Get Free Report) last announced its earnings results on Thursday, July 31st. 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 8.96% and a return on equity of 15.24%. The business had revenue of $2.29 billion for the quarter, compared to analysts' expectations of $2.32 billion. During the same quarter in the prior year, the company posted $2.15 earnings per share. The firm's quarterly revenue was down 3.2% compared to the same quarter last year. Eastman Chemical has set its Q3 2025 guidance at 1.250-1.250 EPS. Research analysts anticipate that Eastman Chemical Company will post 8.55 EPS for the current fiscal year.

Eastman Chemical Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 7th. Stockholders of record on Monday, September 15th will be given a dividend of $0.83 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $3.32 annualized dividend and a dividend yield of 4.8%. Eastman Chemical's payout ratio is currently 46.63%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Principal Financial Group Inc. raised its holdings in shares of Eastman Chemical by 5.9% in the first quarter. Principal Financial Group Inc. now owns 155,509 shares of the basic materials company's stock worth $13,702,000 after buying an additional 8,708 shares during the period. OneDigital Investment Advisors LLC grew its position in Eastman Chemical by 36.9% in the 1st quarter. OneDigital Investment Advisors LLC now owns 3,029 shares of the basic materials company's stock valued at $267,000 after acquiring an additional 816 shares during the last quarter. Teacher Retirement System of Texas purchased a new stake in Eastman Chemical in the first quarter worth $1,494,000. Farther Finance Advisors LLC lifted its position in shares of Eastman Chemical by 12.8% during the first quarter. Farther Finance Advisors LLC now owns 1,890 shares of the basic materials company's stock worth $167,000 after purchasing an additional 214 shares during the last quarter. Finally, Golden State Wealth Management LLC boosted its stake in shares of Eastman Chemical by 882.3% during the first quarter. Golden State Wealth Management LLC now owns 943 shares of the basic materials company's stock valued at $83,000 after purchasing an additional 847 shares during the period. 83.65% of the stock is owned by hedge funds and other institutional investors.

About Eastman Chemical

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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