Huntsman (NYSE:HUN) Sets New 1-Year Low - What's Next?

Key Points

• Huntsman Corporation's shares hit a new 52-week low of $8.89 during mid-day trading, reflecting significant market volatility.
• Several analysts have downgraded their price targets for Huntsman, with notable reductions from UBS Group, Goldman Sachs, and Royal Bank Of Canada.
• Huntsman announced a quarterly dividend of $0.25 per share, yielding 11.2%, despite facing recent financial challenges including a negative net margin and revenue decline.

Shares of Huntsman Corporation (NYSE:HUN - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $8.89 and last traded at $8.90, with a volume of 2755078 shares changing hands. The stock had previously closed at $9.47.

Analyst Ratings Changes

HUN has been the topic of several research analyst reports. UBS Group dropped their price objective on Huntsman from $13.00 to $11.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 9th. The Goldman Sachs Group reduced their target price on Huntsman from $12.00 to $10.00 and set a "sell" rating on the stock in a research note on Thursday, August 7th. Royal Bank Of Canada reduced their target price on Huntsman from $12.00 to $10.00 and set a "sector perform" rating on the stock in a research note on Monday, August 4th. Wells Fargo & Company reduced their price objective on Huntsman from $13.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Tuesday, August 5th. Finally, Jefferies Financial Group reduced their target price on Huntsman from $15.00 to $14.00 and set a "buy" rating on the stock in a research note on Wednesday, September 10th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Huntsman has an average rating of "Hold" and an average price target of $12.05.

Huntsman Price Performance

The firm has a 50-day moving average of $10.47 and a 200-day moving average of $12.01. The stock has a market cap of $1.55 billion, a PE ratio of -4.56 and a beta of 0.65. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.43 and a quick ratio of 0.85.

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 (EPS) 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 2.48%. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the previous year, the business earned $0.14 earnings per share. Huntsman's revenue for the quarter was down 7.4% on a year-over-year basis. Research analysts predict that Huntsman Corporation will post 0.32 EPS for the current year.

Huntsman Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a dividend of $0.25 per share. The ex-dividend date is Monday, September 15th. This represents a $1.00 annualized dividend and a dividend yield of 11.2%. Huntsman's dividend payout ratio is -51.28%.

Hedge Funds Weigh In On Huntsman

Several institutional investors and hedge funds have recently modified their holdings of the stock. Impala Asset Management LLC raised its holdings in Huntsman by 259.0% in the 2nd quarter. Impala Asset Management LLC now owns 1,155,200 shares of the basic materials company's stock worth $12,638,000 after purchasing an additional 833,418 shares during the period. Orion Porfolio Solutions LLC grew its position in shares of Huntsman by 10.6% in the second quarter. Orion Porfolio Solutions LLC now owns 67,475 shares of the basic materials company's stock valued at $703,000 after purchasing an additional 6,472 shares in the last quarter. Thrivent Financial for Lutherans grew its position in Huntsman by 868.7% in the second quarter. Thrivent Financial for Lutherans now owns 109,875 shares of the basic materials company's stock worth $1,144,000 after acquiring an additional 98,533 shares during the period. State of Wyoming purchased a new position in Huntsman in the second quarter worth approximately $222,000. Finally, Caxton Associates LLP purchased a new position in shares of Huntsman during the second quarter worth $148,000. Institutional investors and hedge funds own 84.81% of the company's stock.

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.

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