Zacks Research Downgrades Trinseo (NYSE:TSE) to Strong Sell

Key Points

• Zacks Research has downgraded Trinseo (NYSE:TSE) from a "hold" rating to a "strong sell" rating, indicating a negative outlook on the company's performance.
• Trinseo recently reported a significant earnings miss, with an earnings per share of ($2.12) compared to the consensus estimate of ($1.49), and revenue fell short of expectations.
• Despite the downgrade and poor earnings report, insider transactions indicate confidence, with a director acquiring 48,609 shares at an average cost of $2.43 per share.

Trinseo (NYSE:TSE - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

Separately, Weiss Ratings reiterated a "sell (d-)" rating on shares of Trinseo in a research note on Wednesday, October 8th. Two analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the stock presently has a consensus rating of "Sell".

Trinseo Price Performance

TSE opened at $1.56 on Tuesday. The firm has a fifty day moving average price of $2.30 and a 200 day moving average price of $2.83. Trinseo has a 1 year low of $1.55 and a 1 year high of $6.85. The stock has a market cap of $55.90 million, a P/E ratio of -0.14 and a beta of 1.44.

Trinseo (NYSE:TSE - Get Free Report) last posted its earnings results on Wednesday, August 6th. The basic materials company reported ($2.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.49) by ($0.63). The company had revenue of $784.30 million for the quarter, compared to analysts' expectations of $966.82 million. Equities analysts expect that Trinseo will post -3.88 EPS for the current year.

Insider Transactions at Trinseo

In related news, Director Matthew Farrell acquired 48,609 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were acquired at an average cost of $2.43 per share, with a total value of $118,119.87. Following the completion of the acquisition, the director directly owned 250,225 shares in the company, valued at approximately $608,046.75. This trade represents a 24.11% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders have acquired 100,000 shares of company stock worth $240,028 over the last quarter. Company insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Trinseo

A number of hedge funds have recently modified their holdings of TSE. Kohmann Bosshard Financial Services LLC raised its position in shares of Trinseo by 28.9% in the first quarter. Kohmann Bosshard Financial Services LLC now owns 44,605 shares of the basic materials company's stock valued at $164,000 after buying an additional 10,000 shares during the last quarter. Brightline Capital Management LLC raised its position in shares of Trinseo by 7.5% in the first quarter. Brightline Capital Management LLC now owns 1,016,000 shares of the basic materials company's stock valued at $3,739,000 after buying an additional 71,000 shares during the last quarter. OMERS ADMINISTRATION Corp increased its position in Trinseo by 11.6% during the first quarter. OMERS ADMINISTRATION Corp now owns 72,200 shares of the basic materials company's stock worth $266,000 after purchasing an additional 7,500 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in Trinseo during the first quarter worth about $118,000. Finally, Goldman Sachs Group Inc. increased its position in Trinseo by 43.0% during the first quarter. Goldman Sachs Group Inc. now owns 343,604 shares of the basic materials company's stock worth $1,264,000 after purchasing an additional 103,294 shares during the last quarter. 82.69% of the stock is currently owned by institutional investors and hedge funds.

About Trinseo

Trinseo PLC operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally. It operates through five segments: Engineered Materials, Latex Binders, Plastics Solutions, Polystyrene, and Americas Styrenics. The Engineered Materials segment offers rigid thermoplastic compounds and blends, soft thermoplastic, continuous cast, cell cast, activated methyl methacrylates (MMA), PMMA resins, and extruded PMMA sheets and resins for consumer electronics, medical, footwear, automotive, and building and construction applications under the EMERGE, CALIBRE, PLEXIGLAS, ALTUGLAS, ACRYSPA, AVONITE, STUDIO, MEGOL, APILON, APIGO, and APINAT brands.

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