Huntsman (NYSE:HUN) Shares Gap Down - Should You Sell?

Key Points

• Huntsman shares gapped down sharply, opening below the prior close and falling about 20% amid heavy trading. The move came as investors reacted to a weak backdrop for the stock.
• Olin and Huntsman announced an all-stock merger of equals aimed at creating a larger integrated chemicals leader. Supporters say the deal could improve scale and diversification, but the industry’s challenging pricing and demand environment remains a concern.
• Wall Street sentiment stays cautious, with analysts’ consensus rating at “Reduce” and an average target price around $13.17. Huntsman also recently reported a smaller-than-expected quarterly loss and reaffirmed a dividend yield near 2.8%.

Huntsman Corporation (NYSE:HUN - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $15.89, but opened at $14.90. Huntsman shares last traded at $13.4260, with a volume of 2,075,737 shares traded.

Huntsman News Summary

Here are the key news stories impacting Huntsman this week:

• Positive Sentiment: The merger could improve Huntsman’s scale, diversification, and bargaining power in a tough chemicals market, which may support long-term value creation for shareholders. Reuters: Olin to buy Huntsman amid challenging chemicals market
• Positive Sentiment: The deal is structured as an all-stock merger, signaling a strategic combination rather than an outright cash sale, and it positions Huntsman as part of a larger industry leader focused on navigating global specialty chemicals pressure. Hydrocarbon Processing: Olin and Huntsman announce transformative merger of equals
• Neutral Sentiment: Additional coverage confirms the merger announcement and notes headquarters changes and integration plans, but no further financial terms beyond the strategic combination were highlighted. Houston Business Journal: Huntsman and Olin to combine
• Negative Sentiment: The chemicals industry remains under pressure, so investors may worry about cyclical demand, integration risk, and whether the merger can offset a challenging pricing and margin backdrop. Seeking Alpha: Olin, Huntsman to combine in all-stock merger of equals

Wall Street Analyst Weigh In

Several research firms recently weighed in on HUN. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $15.00 target price on shares of Huntsman in a research note on Tuesday, May 19th. Weiss Ratings raised shares of Huntsman from a "sell (d-)" rating to a "sell (d)" rating in a research note on Wednesday, May 6th. Morgan Stanley raised their target price on shares of Huntsman from $11.00 to $15.00 and gave the company an "equal weight" rating in a research note on Tuesday, May 5th. The Goldman Sachs Group reaffirmed a "sell" rating and set a $13.00 target price on shares of Huntsman in a research note on Friday, February 20th. Finally, Wall Street Zen raised shares of Huntsman from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Huntsman presently has a consensus rating of "Reduce" and an average target price of $13.17.

Huntsman Stock Down 20.2%

The firm has a market capitalization of $2.22 billion, a PE ratio of -6.65 and a beta of 0.64. The business's 50 day simple moving average is $14.21 and its 200 day simple moving average is $12.51. The company has a current ratio of 1.27, a quick ratio of 0.75 and a debt-to-equity ratio of 0.58.

Huntsman (NYSE:HUN - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The basic materials company reported ($0.20) EPS for the quarter, topping analysts' consensus estimates of ($0.23) by $0.03. Huntsman had a negative net margin of 5.83% and a negative return on equity of 4.60%. The business had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period last year, the company posted ($0.11) EPS. The business's revenue was up .7% on a year-over-year basis. On average, equities research analysts forecast that Huntsman Corporation will post -0.25 earnings per share for the current year.

Huntsman Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a $0.0875 dividend. This represents a $0.35 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Monday, June 15th. Huntsman's dividend payout ratio (DPR) is presently -18.23%.

Hedge Funds Weigh In On Huntsman

Institutional investors and hedge funds have recently made changes to their positions in the business. Strategic Advocates LLC purchased a new position in shares of Huntsman in the 3rd quarter worth $27,000. Essential Partners LLC lifted its holdings in shares of Huntsman by 40.3% in the 1st quarter. Essential Partners LLC now owns 5,766 shares of the basic materials company's stock worth $77,000 after acquiring an additional 1,655 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of Huntsman in the 3rd quarter worth about $58,000. Parkside Financial Bank & Trust lifted its holdings in shares of Huntsman by 1,005.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 6,514 shares of the basic materials company's stock worth $65,000 after acquiring an additional 5,925 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Huntsman by 121.7% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 6,751 shares of the basic materials company's stock worth $61,000 after acquiring an additional 3,706 shares during the last quarter. 84.81% of the stock is owned by hedge funds and other institutional investors.

Huntsman Company Profile

Huntsman Corporation is a global manufacturer and marketer of specialty chemicals with headquarters in The Woodlands, Texas. Founded in 1970 by entrepreneur Jon Huntsman Sr., the company has grown through strategic acquisitions and organic expansion to establish a broad portfolio of products serving diverse end markets. Huntsman maintains a presence in more than 30 countries, operating manufacturing facilities across North America, Europe, Asia-Pacific, Latin America and the Middle East.

The company organizes its operations into several core business segments, including Polyurethanes, Performance Products, Advanced Materials, and Textile Effects.

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