Huntsman Corporation [HUN] moved down -5.29: Why It’s Important

Huntsman Corporation [NYSE: HUN] plunged by -$1.32 during the normal trading session on Wednesday and reaching a high of $24.90 during the day while it closed the day at $23.61. The company report on November 4, 2020 that Huntsman Completes the Sale of its India Based DIY Consumer Adhesives Business.

Huntsman Corporation (NYSE: HUN) announced that it has completed the sale of its India based Do-It-Yourself consumer adhesives business, within its Advanced Materials division, to Pidilite Industries Ltd. in an all-cash transaction. Huntsman received pre-tax proceeds of approximately $257 million on November 3, 2020, excluding working capital and other adjustments. Taxes on the transaction are estimated to be just under 10 percent. Under the terms of the agreement Huntsman may receive up to approximately $28 million of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019, for a total value of up to $285 million, excluding working capital and other adjustments. The total transaction value represents a 2019 adjusted EBITDA multiple of approximately 15 times.

About Huntsman:Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company’s website at www.huntsman.com.

Huntsman Corporation stock has also loss -1.62% of its value over the past 7 days. However, HUN stock has inclined by 20.58% in the 3 months of the year. Over the past six months meanwhile, it has gained 58.24% and lost -2.28% year-on date.

The market cap for HUN stock reached $5.18 billion, with 219.80 million shares outstanding and 198.51 million shares in the current float. Compared to the average trading volume of 1.67M shares, HUN reached a trading volume of 1588494 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Huntsman Corporation [HUN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HUN shares is $26.58 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HUN stock is a recommendation set at 2.10. 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.

Scotiabank have made an estimate for Huntsman Corporation shares, keeping their opinion on the stock as Sector Outperform, with their previous recommendation back on October 30, 2020. While these analysts kept the previous recommendation, Deutsche Bank raised their target price to Buy. The new note on the price target was released on October 15, 2020, representing the official price target for Huntsman Corporation stock. Previously, the target price had yet another raise to $26, while Morgan Stanley analysts kept a Overweight rating on HUN stock. On September 28, 2020, analysts increased their price target for HUN shares from 18 to 23.

The Average True Range (ATR) for Huntsman Corporation is set at 0.83, with the Price to Sales ratio for HUN stock in the period of the last 12 months amounting to 0.86. The Price to Book ratio for the last quarter was 1.62, with the Price to Cash per share for the same quarter was set at 5.33.

HUN stock trade performance evaluation

Huntsman Corporation [HUN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.62. With this latest performance, HUN shares gained by 1.07% in over the last four-week period, additionally plugging by 58.24% over the last 6 months – not to mention a rise of 0.55% 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 HUN stock in for the last two-week period is set at 45.73, with the RSI for the last a single of trading hit 40.52, and the three-weeks RSI is set at 50.17 for Huntsman Corporation [HUN]. The present Moving Average for the last 50 days of trading for this stock 23.28, while it was recorded at 24.40 for the last single week of trading, and 19.34 for the last 200 days.

Huntsman Corporation [HUN]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Huntsman Corporation [HUN] shares currently have an operating margin of +6.75 and a Gross Margin at +20.33. Huntsman Corporation’s Net Margin is presently recorded at +5.78.

Return on Total Capital for HUN is now 8.57, given the latest momentum, and Return on Invested Capital for the company is 7.87. Return on Equity for this stock inclined to 15.10, with Return on Assets sitting at 4.83. When it comes to the capital structure of this company, Huntsman Corporation [HUN] has a Total Debt to Total Equity ratio set at 104.76. Additionally, HUN Total Debt to Total Capital is recorded at 51.16, with Total Debt to Total Assets ending up at 33.83. Long-Term Debt to Equity for the company is recorded at 95.31, with the Long-Term Debt to Total Capital now at 46.55.

Reflecting on the efficiency of the workforce at the company, Huntsman Corporation [HUN] managed to generate an average of $39,300 per employee. Receivables Turnover for the company is 6.11 with a Total Asset Turnover recorded at a value of 0.84.Huntsman Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.60.

Earnings per share (EPS) analysis for Huntsman Corporation [HUN] stock

With the latest financial reports released by the company, Huntsman Corporation posted 0.29/share EPS, while the average EPS was predicted by analysts to be reported at 0.29/share. 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 HUN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Huntsman Corporation go to 10.48%.

Huntsman Corporation [HUN]: Insider Ownership positions

There are presently around $4,204 million, or 80.90% of HUN stock, in the hands of institutional investors. The top three institutional holders of HUN stocks are: VANGUARD GROUP INC with ownership of 21,731,018, which is approximately -5.17% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 12,019,096 shares of the stock with an approximate value of $283.77 million in HUN stocks shares; and LSV ASSET MANAGEMENT, currently with $222.54 million in HUN stock with ownership of nearly -6.921% of the company’s market capitalization.

Positions in Huntsman Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 125 institutional holders increased their position in Huntsman Corporation [NYSE:HUN] by around 18,107,530 shares. Additionally, 201 investors decreased positions by around 23,423,472 shares, while 45 investors held positions by with 127,090,963 shares. The mentioned changes placed institutional holdings at 168,621,965 shares, according to the latest SEC report filing. HUN stock had 43 new institutional investments in for a total of 7,012,017 shares, while 49 institutional investors sold positions of 1,814,259 shares during the same period.

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