Huntsman Corporation Announces Quarterly Dividend of $0.25 (NYSE:HUN)

Key Points

• Huntsman Corporation declared a quarterly dividend of $0.25 per share, payable to shareholders on September 30th, with a significant annualized yield of 10.4%.
• The company's dividend payout ratio stands at 384.6%, indicating that it is currently relying on its balance sheet to cover dividend payments, as projected earnings may not sustain the dividend in the upcoming year.
• Huntsman reported (-0.20) earnings per share for the last quarter, missing expectations, and has a current stock price of $9.66, well below its 52-week high of $25.12.

Huntsman Corporation (NYSE:HUN - Get Free Report) announced a quarterly dividend on Thursday, July 31st, RTT News reports. Shareholders of record on Monday, September 15th will be given a dividend of 0.25 per share by the basic materials company on Tuesday, September 30th. This represents a c) annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend is Monday, September 15th.

Huntsman has a payout ratio of 384.6% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Huntsman to earn $0.81 per share next year, which means the company may not be able to cover its $1.00 annual dividend with an expected future payout ratio of 123.5%.

Huntsman Stock Up 0.5%

Huntsman stock traded up $0.05 during trading hours on Monday, hitting $9.26. 1,102,988 shares of the stock traded hands, compared to its average volume of 3,832,615. The firm's 50-day moving average price is $11.05 and its two-hundred day moving average price is $13.76. The company has a current ratio of 1.48, a quick ratio of 0.82 and a debt-to-equity ratio of 0.53. The company has a market cap of $1.61 billion, a PE ratio of -4.76 and a beta of 0.70. Huntsman has a one year low of $9.02 and a one year high of $25.12.

Huntsman (NYSE:HUN - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The basic materials company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of ($0.15) by ($0.05). Huntsman had a negative net margin of 5.75% and a negative return on equity of 2.45%. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the previous year, the firm posted $0.14 earnings per share. The business's revenue was down 7.4% compared to the same quarter last year. On average, research analysts forecast that Huntsman will post 0.32 EPS for the current year.

Analyst Ratings Changes

Several brokerages recently issued reports on HUN. Wall Street Zen downgraded Huntsman from a "hold" rating to a "sell" rating in a research note on Wednesday, May 21st. UBS Group dropped their price target on Huntsman from $13.00 to $11.00 and set a "neutral" rating for the company in a research note on Wednesday, July 9th. Morgan Stanley dropped their price target on Huntsman from $20.00 to $13.50 and set an "equal weight" rating for the company in a research note on Monday, May 5th. The Goldman Sachs Group reduced their price objective on Huntsman from $13.50 to $12.00 and set a "sell" rating on the stock in a research note on Tuesday, July 8th. Finally, Bank of America cut Huntsman from a "buy" rating to a "neutral" rating and reduced their price objective for the stock from $22.00 to $15.00 in a research note on Tuesday, April 15th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, Huntsman currently has a consensus rating of "Hold" and a consensus target price of $12.94.

Huntsman Company Profile

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products.