Reassessing The Changing Outlook For Eastman Chemical Company (EMN)

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    JPMorgan Investment Management, I. recently announced the acquisition of new stake in Eastman Chemical Company (NYSE:EMN). The institutional investor has increased its shareholding in the Basic Materials company by 36.25% to 7.19 million shares with purchase of 1.91 million shares. This fresh investment now brings its stake to 5.29% valued currently at $500.75 million. In addition, BlackRock Fund Advisors raised its holdings by 0.13 million to 6.91 million shares. And Dimensional Fund Advisors LP has lifted its position by 10.09% or 0.24 million shares – to 2.6 million shares.

    With over 0.55 million Eastman Chemical Company (EMN) shares trading Wednesday and a closing price of $76.48 on the day, the dollar volume was approximately $41.75 million. The shares have shown a positive weekly performance of 1.82% and its price on 07/22/20 lost nearly -0.16%. Currently, there are 136.00M common shares owned by the public and among those 135.04M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for EMN have a consensus price objective of $75.68. The analysts have set the share’s price value over the next 12 months at a high of $92.00 and a low of $52.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Eastman Chemical Company stock is 2.00 for the next 12 months. The average price target is -4.45% below its last price level and a downside to the estimated low will see the stock lose -47.08% over that period. But an upside of 16.87% will see the stock hit the forecast high price target while mean target price for the stock is $75.00.

    Insiders at the company have transacted a total of 32 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 18 of these insider trades were purchases, accounting for 282,234 shares. Insider sales of the common stock occurred on 14 occasions, with total insider shares sold totaling 125,424 shares.

    The top 3 mutual fund holders in Eastman Chemical Company are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and JPMorgan US Equity Fund. Vanguard Total Stock Market Index owns 3.87 million shares of the company’s stock, all valued at over $269.75 million. The company bought an additional 0.33 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard Mid Cap Index Fund bought 0.17 million shares to see its total holdings expand to 3.36 million shares valued at over $233.89 million and representing 2.47% of the shares outstanding. JPMorgan US Equity Fund sold -0.2 million shares to bring its total holdings to over 2.9 million shares at a value of $201.94 million. JPMorgan US Equity Fund now owns shares totaling to 2.13% of the shares outstanding.

    Shares of Eastman Chemical Company (NYSE: EMN) opened at $76.02, down -$0.58 from a prior closing price of $76.60. However, the script later closed the day at $76.48, down -0.16%. The company’s stock has a 5-day price change of 1.82% and 42.19% over the past three months. EMN shares are trading -3.36% year to date (YTD), with the 12-month market performance down to -5.69% lower. It has a 12-month low price of $34.44 and touched a high of $83.99 over the same period. Currently, 0.55 million shares have been traded, compared to an average intraday trading volume of 1.27 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.96%, 9.66%, and 11.83% respectively.

    Institutional ownership of Eastman Chemical Company (NYSE: EMN) shares accounts for 83.80% of the company’s 136.00M shares outstanding. Mutual fund holders own 31.52%, while other institutional holders and individual stakeholders account for 50.90% and 1.67% respectively.

    It has a market capitalization of $10.38B and a beta (3y monthly) value of 1.69. The stock’s trailing 12-month PE ratio is 13.06, while the earnings-per-share (ttm) stands at $5.87. The company has a PEG of 5.00 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 1.03. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.84% over the week and 2.63% over the month.

    Analysts forecast that Eastman Chemical Company (EMN) will achieve an EPS of $1.04 for the current quarter, $1.41 for the next quarter and $6.96 for 2021. The lowest estimate earnings-per-share for the quarter is $0.81 while analysts give the company a high EPS estimate of $1.28. Comparatively, EPS for the current quarter was $1.99 a year ago. Earnings per share for the fiscal year are expected to decrease by -26.10%, and 17.45% over the next financial year. EPS should grow at an annualized rate of 2.61% over the next five years, compared to 2.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Eastman Chemical Company (EMN) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 6 of the 20 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the EMN, a number of firms have released research notes about the stock. Standpoint Research stated their Hold rating for the stock in a research note on June 09, 2020, with the firm’s price target at. JP Morgan coverage for the Eastman Chemical Company (EMN) stock in a research note released on April 09, 2020 offered a Overweight rating with a price target of $75. Goldman was of a view on March 30, 2020 that the stock is Neutral, while KeyBanc Capital Markets gave the stock Overweight rating on March 26, 2020, issuing a price target of $58. Citigroup on their part issued Buy rating on March 25, 2020.

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