Huntsman (NYSE:HUN) Hits New Low Amid Analyst Downgrade

December 19, 2024 08:00 AM PST | By Team Kalkine Media

Huntsman (NYSE:HUN) Hits New Low Amid Analyst Downgrade — Image source: shutterstock

Huntsman Corporation (NYSE:HUN) Faces Market Challenges

Huntsman Corporation, a major player in the basic materials sector, recently saw its stock reach a 52-week low. This drop follows an analyst downgrade from Citigroup, which reduced the price target to $19.00 from $22.00. The neutral rating highlights current challenges and market sentiment surrounding the stock.

Insider Transactions Spark Attention

Recent insider activity has brought attention to Huntsman. Director Mary C. Beckerle sold over 20,000 shares in a transaction valued at more than $432,000. Insider transactions like this often provide insights into management’s perspectives, although broader market conditions could also influence such decisions.

Institutional Activity Reflects Strategic Adjustments

Institutional investors have made significant moves concerning Huntsman stock. AQR Capital Management LLC increased its holdings by a staggering 383%, acquiring over 1.4 million shares. Other notable players, such as First Eagle Investment Management and Bank of Montreal, have also expanded their stakes. These strategic moves underscore ongoing confidence in Huntsman’s potential amidst market volatility.

Financial Performance and Revenue Trends

Huntsman posted revenue of $1.54 billion in its recent quarterly results, aligned with market expectations. While earnings per share came in at $0.10, meeting consensus estimates, the company’s revenue grew by 2.3% compared to the previous year. Despite positive revenue trends, Huntsman continues to face challenges, with a negative net margin of 1.99% and a subdued return on equity.

The company maintains a market capitalization of $3.17 billion and a P/E ratio of -26.52. Its liquidity metrics, including a quick ratio of 0.83 and a current ratio of 1.47, highlight stability in short-term obligations.

Dividend Highlights and Yield

Huntsman has declared a quarterly dividend of $0.25 per share, resulting in an annualized dividend yield of 5.46%. This robust yield provides value to shareholders, emphasizing the company’s commitment to maintaining returns amidst market fluctuations. The dividend payout ratio, however, stands at -144.93%, reflecting the need for sustained profitability to support payouts.

Huntsman’s Core Operations

Huntsman Corporation operates across three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment leads with a diverse portfolio that includes key chemicals like methyl diphenyl diisocyanate and thermoplastic polyurethane. Huntsman’s offerings cater to global industries, ensuring its relevance in the evolving market landscape.

Huntsman continues to navigate market complexities, with its stock performance reflecting broader challenges. Insider activity, institutional adjustments, and consistent dividend payouts spotlight the company’s current positioning within the basic materials sector. While revenue growth signals resilience, further strategic efforts may be crucial for long-term stability and market recovery.

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