Eastman Chemical (NYSE:EMN) Share Price Breaks Above 50-Day Moving Average - Time to Sell?

Key Points

• Eastman Chemical shares moved above their 50-day moving average of $65.80, trading as high as $66.82; the stock’s 200-day average is $70.81.
• Analyst views are mixed, with a consensus Hold rating and an average price target of $74.79; six analysts rate the stock Buy, eight Hold, and one Sell.
• Quarterly results fell short of estimates: EPS was $1.84 versus $1.92 expected, and revenue was $2.38 billion versus $2.41 billion expected. Revenue nevertheless increased 8.3% year over year.

Eastman Chemical Company (NYSE:EMN - Get Free Report) crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $65.80 and traded as high as $66.82. Eastman Chemical shares last traded at $66.5260, with a volume of 895,100 shares changing hands.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on EMN shares. Jefferies Financial Group reiterated a "buy" rating and set a $85.00 price target on shares of Eastman Chemical in a research report on Friday, September 25th. Zacks Research lowered Eastman Chemical from a "hold" rating to a "strong sell" rating in a report on Monday, October 19th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $72.00 target price on shares of Eastman Chemical in a research note on Monday, November 2nd. JPMorgan Chase & Co. lowered their target price on Eastman Chemical from $66.00 to $65.00 and set a "neutral" rating on the stock in a report on Monday, November 2nd. Finally, Wells Fargo & Company set a $68.00 target price on Eastman Chemical in a report on Friday, October 16th. Six research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $74.79.

Eastman Chemical Price Performance

The business has a 50-day moving average price of $65.80 and a 200 day moving average price of $70.81. The company has a market cap of $7.61 billion, a price-to-earnings ratio of 11.82, a P/E/G ratio of 0.91 and a beta of 1.07. The company has a current ratio of 1.57, a quick ratio of 0.79 and a debt-to-equity ratio of 0.70.

Eastman Chemical (NYSE:EMN - Get Free Report) last issued its earnings results on Thursday, October 29th. The basic materials company reported $1.84 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.92 by ($0.08). The company had revenue of $2.38 billion during the quarter, compared to analyst estimates of $2.41 billion. Eastman Chemical had a return on equity of 10.59% and a net margin of 7.15%. The business's revenue was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.14 earnings per share. As a group, research analysts expect that Eastman Chemical Company will post 6.10 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Eastman Chemical

A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of Eastman Chemical in the second quarter worth approximately $1,134,421,000. Dimensional Fund Advisors LP lifted its position in shares of Eastman Chemical by 7.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,936,789 shares of the basic materials company's stock valued at $376,747,000 after acquiring an additional 338,914 shares in the last quarter. State Street Corp lifted its position in shares of Eastman Chemical by 0.7% in the 2nd quarter. State Street Corp now owns 4,169,105 shares of the basic materials company's stock valued at $282,741,000 after acquiring an additional 29,010 shares in the last quarter. Boston Partners lifted its position in shares of Eastman Chemical by 87.1% in the 3rd quarter. Boston Partners now owns 2,795,537 shares of the basic materials company's stock valued at $181,216,000 after acquiring an additional 1,301,513 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in Eastman Chemical by 39.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 2,592,691 shares of the basic materials company's stock worth $196,552,000 after purchasing an additional 732,693 shares during the period. Hedge funds and other institutional investors own 83.65% of the company's stock.

About Eastman Chemical

Eastman Chemical Company is a global specialty materials and chemicals company founded in 1920 in Kingsport, Tennessee. Originally part of Eastman Kodak, it became an independent company in 1994. Eastman develops and manufactures materials and chemical products for customers in a wide range of industries. Its products include specialty plastics and films, performance additives, chemical intermediates, and cellulose acetate fibers. These materials are used in applications such as transportation, building and construction, consumer goods, electronics, packaging, and healthcare.

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