Huntsman (NYSE:HUN) Shares Gap Down - Time to Sell?

Key Points

• Huntsman Corporation's shares gapped down prior to trading, opening at $10.80 compared to a previous close of $11.15, and last traded at $11.00 with significant trading volume.
• An array of analysts have downgraded their price targets for Huntsman, with Goldman Sachs lowering their target from $12.00 to $10.00 and issuing a "sell" rating.
• The company reported a quarterly earnings miss with ($0.20) EPS, falling short of the consensus estimate of ($0.15), alongside a 7.4% year-over-year revenue decline.

Huntsman Corporation (NYSE:HUN - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $11.15, but opened at $10.80. Huntsman shares last traded at $11.00, with a volume of 473,904 shares.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Jefferies Financial Group lowered their target price on shares of Huntsman from $15.00 to $14.00 and set a "buy" rating for the company in a report on Wednesday. The Goldman Sachs Group lowered their target price on shares of Huntsman from $12.00 to $10.00 and set a "sell" rating for the company in a report on Thursday, August 7th. Mizuho restated an "underperform" rating and issued a $9.00 target price (down previously from $11.00) on shares of Huntsman in a report on Friday. Wall Street Zen lowered shares of Huntsman from a "hold" rating to a "sell" rating in a report on Wednesday, May 21st. Finally, Royal Bank Of Canada lowered their target price on shares of Huntsman from $12.00 to $10.00 and set a "sector perform" rating for the company in a report on Monday, August 4th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $12.05.

Huntsman Stock Performance

The business's 50-day moving average price is $10.68 and its 200-day moving average price is $12.44. 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 stock has a market cap of $1.89 billion, a PE ratio of -5.58 and a beta of 0.65.

Huntsman (NYSE:HUN - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The basic materials company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.15) by ($0.05). The firm had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.51 billion. Huntsman had a negative return on equity of 2.48% and a negative net margin of 5.75%.The firm's quarterly revenue was down 7.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.14 EPS. As a group, equities research analysts expect that Huntsman Corporation will post 0.32 earnings per share for the current fiscal year.

Huntsman Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 9.2%. The ex-dividend date of this dividend is Monday, September 15th. Huntsman's payout ratio is currently -51.28%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Two Sigma Investments LP increased its holdings in Huntsman by 28.6% in the fourth quarter. Two Sigma Investments LP now owns 1,074,347 shares of the basic materials company's stock valued at $19,370,000 after buying an additional 239,193 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in Huntsman by 898.5% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 167,206 shares of the basic materials company's stock valued at $2,640,000 after buying an additional 150,461 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. increased its holdings in Huntsman by 12.6% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 132,516 shares of the basic materials company's stock valued at $2,096,000 after buying an additional 14,812 shares in the last quarter. Twelve Points Wealth Management LLC increased its holdings in Huntsman by 51.0% in the first quarter. Twelve Points Wealth Management LLC now owns 115,641 shares of the basic materials company's stock valued at $1,826,000 after buying an additional 39,035 shares in the last quarter. Finally, Teacher Retirement System of Texas increased its holdings in Huntsman by 72.0% in the first quarter. Teacher Retirement System of Texas now owns 63,424 shares of the basic materials company's stock valued at $1,001,000 after buying an additional 26,551 shares in the last quarter. Hedge funds and other institutional investors 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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