Celanese Corporation [NYSE: CE] slipped around -1.0 points on Wednesday, while shares priced at $102.00 at the close of the session, down -0.97%. The company report on July 28, 2020 that Celanese Corporation Reports Second Quarter 2020 Earnings; Strong Cash Flow Generation and Solid Results.
Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported second quarter GAAP diluted earnings per share of $0.93 and adjusted earnings per share of $1.30 on net sales of $1.2 billion. The Company exceeded expectations in mitigating the effects of COVID-19 and limited its impact on second quarter earnings to less than the previously forecasted range. These results were due to the resiliency of Acetyl Chain, the strength of Engineered Materials’ commercial model and the continued stability in Acetate Tow. Celanese generated steady operating cash flow of $379 million and free cash flow of $283 million for the second quarter. The consistent strong cash generation, resulting from the focused efforts around productivity, fixed cost management and pricing discipline, continues to strengthen the Company’s balance sheet and add capacity to pursue future growth. The recently announced Polyplastics transaction monetizes the ownership in a passive investment and further improves the Company’s ability to make opportunistic investments.
“The focus and dedication of our employees, despite the challenges of COVID-19, enabled the Company to surpass our guidance for the quarter. The decisive actions taken by our global team to fully maximize the core strengths of the Company has helped to offset the severe demand deterioration, particularly in the Western Hemisphere. Even in these difficult times, the resolve and commitment of our employees is a testament to the Celanese spirit of action and collaboration. We continue to be purposeful in the steps we are taking today to prepare us for recovery and growth in the future,” said Lori Ryerkerk, chairman and chief executive officer.
Celanese Corporation stock is now -17.15% down from its year-to-date (YTD) trading value. CE Stock saw the intraday high of $104.4299 and lowest of $101.75 per share. The company’s 52-week high price is 128.88, which means current price is +93.55% above from all time high which was touched on 01/02/20.
Compared to the average trading volume of 975.73K shares, CE reached a trading volume of 1021275 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Celanese Corporation [CE]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CE shares is $109.05 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CE stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Celanese Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on July 31, 2020. The new note on the price target was released on July 30, 2020, representing the official price target for Celanese Corporation stock. Previously, the target price had yet another raise to $110, while Alembic Global Advisors analysts kept a Overweight rating on CE stock. On May 29, 2020, analysts increased their price target for CE shares from 90 to 100.
The Average True Range (ATR) for Celanese Corporation is set at 2.87, with the Price to Sales ratio for CE stock in the period of the last 12 months amounting to 2.09. The Price to Book ratio for the last quarter was 4.85, with the Price to Cash per share for the same quarter was set at 4.96. Price to Free Cash Flow for CE in the course of the last twelve months was 18.83 with Quick ratio for the last quarter at 0.70.
How has CE stock performed recently?
Celanese Corporation [CE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.78. With this latest performance, CE shares gained by 14.81% in over the last four-week period, additionally sinking by -8.45% over the last 6 months – not to mention a drop of -8.11% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CE stock in for the last two-week period is set at 67.22, with the RSI for the last a single of trading hit 70.29, and the three-weeks RSI is set at 63.77 for Celanese Corporation [CE]. The present Moving Average for the last 50 days of trading for this stock 91.91, while it was recorded at 101.62 for the last single week of trading, and 98.87 for the last 200 days.
Celanese Corporation [CE]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Celanese Corporation [CE] shares currently have an operating margin of +16.36 and a Gross Margin at +25.09. Celanese Corporation’s Net Margin is presently recorded at +13.63.
Return on Total Capital for CE is now 14.80, given the latest momentum, and Return on Invested Capital for the company is 14.24. Return on Equity for this stock inclined to 31.25, with Return on Assets sitting at 9.13. When it comes to the capital structure of this company, Celanese Corporation [CE] has a Total Debt to Total Equity ratio set at 164.14. Additionally, CE Total Debt to Total Capital is recorded at 62.14, with Total Debt to Total Assets ending up at 43.43. Long-Term Debt to Equity for the company is recorded at 143.20, with the Long-Term Debt to Total Capital now at 54.21.
Reflecting on the efficiency of the workforce at the company, Celanese Corporation [CE] managed to generate an average of $111,226 per employee. Receivables Turnover for the company is 5.04 with a Total Asset Turnover recorded at a value of 0.67.Celanese Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 1.20.
Earnings analysis for Celanese Corporation [CE]
With the latest financial reports released by the company, Celanese Corporation posted 2.53/share EPS, while the average EPS was predicted by analysts to be reported at 2.51/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Celanese Corporation go to 1.70%.
Insider trade positions for Celanese Corporation [CE]
There are presently around $11,399 million, or 99.00% of CE stock, in the hands of institutional investors. The top three institutional holders of CE stocks are: VANGUARD GROUP INC with ownership of 13,861,103, which is approximately 2.285% of the company’s market cap and around 0.90% of the total institutional ownership; DODGE & COX, holding 10,095,394 shares of the stock with an approximate value of $1.03 billion in CE stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $986.94 million in CE stock with ownership of nearly 14.214% of the company’s market capitalization.
Positions in Celanese Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 213 institutional holders increased their position in Celanese Corporation [NYSE:CE] by around 6,867,004 shares. Additionally, 318 investors decreased positions by around 7,803,048 shares, while 71 investors held positions by with 97,089,594 shares. The mentioned changes placed institutional holdings at 111,759,646 shares, according to the latest SEC report filing. CE stock had 49 new institutional investments in for a total of 599,874 shares, while 87 institutional investors sold positions of 1,614,696 shares during the same period.