Zacks Investment Research Lowers Eastman Chemical (EMN) to Sell

Zacks Investment Research downgraded shares of Eastman Chemical (NYSE:EMN) from a hold rating to a sell rating in a research note issued to investors on Monday, Zacks.com reports.

According to Zacks, “Eastman Chemical faces headwinds from raw material cost inflation. Moreover, demand for its specialty products in China is weak due to the trade conflict. Unfavorable currency swings and higher pension costs are other headwinds that are denting the company’s performance. It is also exposed to certain challenges in the fiber business.”

EMN has been the subject of several other research reports. Morgan Stanley upgraded Eastman Chemical from an equal weight rating to an overweight rating and set a $90.00 price target for the company in a report on Thursday, January 17th. Cowen cut Eastman Chemical from an outperform rating to a market perform rating and cut their price target for the company from $94.00 to $88.00 in a report on Wednesday, February 6th. Standpoint Research cut Eastman Chemical from a buy rating to a hold rating in a report on Thursday, January 31st. Jefferies Financial Group cut their price target on Eastman Chemical to $91.00 and set a buy rating for the company in a report on Friday, December 21st. Finally, KeyCorp cut their price target on Eastman Chemical from $95.00 to $94.00 and set an overweight rating for the company in a report on Friday. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and six have assigned a buy rating to the stock. The company has an average rating of Hold and an average target price of $91.30.

NYSE EMN opened at $83.94 on Monday. The company has a market cap of $11.65 billion, a price-to-earnings ratio of 10.26, a PEG ratio of 1.10 and a beta of 1.14. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.82 and a quick ratio of 0.96. Eastman Chemical has a 1-year low of $67.40 and a 1-year high of $110.17.

Eastman Chemical (NYSE:EMN) last released its quarterly earnings results on Thursday, January 31st. The basic materials company reported $1.39 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.21). The firm had revenue of $2.38 billion for the quarter, compared to analysts’ expectations of $2.42 billion. Eastman Chemical had a net margin of 10.64% and a return on equity of 20.15%. As a group, research analysts forecast that Eastman Chemical will post 8.75 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 5th. Stockholders of record on Friday, March 15th were paid a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 2.95%. The ex-dividend date of this dividend was Thursday, March 14th. Eastman Chemical’s payout ratio is 30.24%.

Several large investors have recently bought and sold shares of EMN. Oregon Public Employees Retirement Fund lifted its stake in shares of Eastman Chemical by 7,724.0% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 3,316,050 shares of the basic materials company’s stock valued at $45,000 after purchasing an additional 3,273,667 shares during the last quarter. Norges Bank bought a new stake in shares of Eastman Chemical in the 4th quarter valued at approximately $135,037,000. Victory Capital Management Inc. lifted its stake in shares of Eastman Chemical by 47.1% in the 4th quarter. Victory Capital Management Inc. now owns 3,260,797 shares of the basic materials company’s stock valued at $238,397,000 after purchasing an additional 1,043,805 shares during the last quarter. Two Sigma Investments LP lifted its stake in shares of Eastman Chemical by 9,974.5% in the 4th quarter. Two Sigma Investments LP now owns 443,280 shares of the basic materials company’s stock valued at $32,408,000 after purchasing an additional 438,880 shares during the last quarter. Finally, Brandywine Global Investment Management LLC lifted its stake in shares of Eastman Chemical by 58.7% in the 4th quarter. Brandywine Global Investment Management LLC now owns 1,024,134 shares of the basic materials company’s stock valued at $74,875,000 after purchasing an additional 378,608 shares during the last quarter. 82.91% of the stock is owned by institutional investors and hedge funds.

Eastman Chemical Company Profile

Eastman Chemical Company manufactures and sells materials, specialty additives, chemicals, and fibers in the United States and internationally. The company's Additives & Functional Products segment offers specialty coalescents, specialty and commodity solvents, paint additives, and specialty polymers; hydrocarbon and rosin resins; insoluble sulfur and antidegradant rubber additives; performance resins and amine derivative-based building blocks; heat transfer and aviation fluids; formic acid-based solutions; and metam-based soil fumigants, thiram and ziram based fungicides, and plant growth regulators.

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