Huntsman Corporation (NYSE:HUN) Sees Significant Increase in Short Interest

Key Points

• Huntsman Corporation experienced a significant increase in short interest, rising by 30.8% in July, with current short interest at 11,820,000 shares, representing 7.2% of its stock.
• The company reported a Q2 loss of ($0.20) EPS, missing expectations, with revenue declining 7.4% year-over-year to $1.46 billion.
• Huntsman announced a quarterly dividend of $0.25 to be paid on September 30th, yielding 9.8% annually, despite a negative payout ratio of -51.28%.

Huntsman Corporation (NYSE:HUN - Get Free Report) saw a significant increase in short interest in July. As of July 31st, there was short interest totaling 11,820,000 shares, anincreaseof30.8% from the July 15th total of 9,040,000 shares. Currently,7.2% of the shares of the stock are sold short. Based on an average daily volume of 4,370,000 shares, the days-to-cover ratio is currently 2.7 days. Based on an average daily volume of 4,370,000 shares, the days-to-cover ratio is currently 2.7 days. Currently,7.2% of the shares of the stock are sold short.

Huntsman Stock Down 0.1%

Shares of NYSE HUN traded down $0.01 during mid-day trading on Monday, reaching $10.96. 3,387,726 shares of the company's stock were exchanged, compared to its average volume of 3,930,222. The company has a current ratio of 1.43, a quick ratio of 0.85 and a debt-to-equity ratio of 0.54. The business has a fifty day simple moving average of $10.57 and a 200 day simple moving average of $12.98. Huntsman has a twelve month low of $8.91 and a twelve month high of $25.12. The firm has a market capitalization of $1.90 billion, a price-to-earnings ratio of -5.62 and a beta of 0.70.

Huntsman (NYSE:HUN - Get Free Report) last released its quarterly earnings results 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). The company had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.51 billion. Huntsman had a negative net margin of 5.75% and a negative return on equity of 2.48%. The firm's quarterly revenue was down 7.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.14 EPS. As a group, equities analysts expect that Huntsman will post 0.32 EPS for the current fiscal year.

Huntsman Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a $0.25 dividend. The ex-dividend date is Monday, September 15th. This represents a $1.00 annualized dividend and a yield of 9.1%. Huntsman's payout ratio is presently -51.28%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. JPMorgan Chase & Co. dropped their target price on shares of Huntsman from $22.00 to $20.00 and set an "overweight" rating for the company in a research note on Monday, May 5th. UBS Group dropped their price objective on shares of Huntsman from $13.00 to $11.00 and set a "neutral" rating for the company in a research report on Wednesday, July 9th. The Goldman Sachs Group dropped their target price on Huntsman from $12.00 to $10.00 and set a "sell" rating for the company in a research report on Thursday, August 7th. Royal Bank Of Canada decreased their price target on Huntsman from $12.00 to $10.00 and set a "sector perform" rating on the stock in a report on Monday, August 4th. Finally, Wells Fargo & Company dropped their price objective on Huntsman from $13.00 to $9.00 and set an "equal weight" rating for the company in a report on Tuesday, August 5th. One research analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $12.06.

Institutional Trading of Huntsman

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC lifted its position in Huntsman by 345.7% during the 1st quarter. AQR Capital Management LLC now owns 9,926,971 shares of the basic materials company's stock worth $151,982,000 after buying an additional 7,699,922 shares in the last quarter. Nomura Holdings Inc. boosted its position in Huntsman by 188.3% during the fourth quarter. Nomura Holdings Inc. now owns 3,269,000 shares of the basic materials company's stock valued at $58,940,000 after purchasing an additional 2,135,000 shares during the last quarter. Qube Research & Technologies Ltd acquired a new position in shares of Huntsman during the 2nd quarter worth approximately $21,953,000. Norges Bank bought a new stake in shares of Huntsman during the 2nd quarter worth approximately $21,651,000. Finally, SG Americas Securities LLC raised its stake in Huntsman by 1,673.4% in the second quarter. SG Americas Securities LLC now owns 1,921,233 shares of the basic materials company's stock valued at $20,019,000 after buying an additional 1,812,896 shares during the period. 84.81% of the stock is currently owned by institutional investors and hedge funds.

About Huntsman

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.