Huntsman Corporation (NYSE: HUN) stock jumped 1.10% on Friday to $29.38 against a previous-day closing price of $29.06. With 4.31 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.46 million shares. During the session, the Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $30.15 whereas the lowest price it dropped to was $28.81. The 52-week range on HUN shows that it touched its highest point at $41.65 and its lowest point at $24.09 during that stretch. It currently has a 1-year price target of $39.44. With its current market cap of 6.23 billion, HUN has annualized dividend of $0.85 while the current yield stands at 2.89%. Beta for the stock currently stands at 1.19.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of HUN was up-trending over the past week, with a rise of 2.80%, but this was up by 2.69% over a month. Three-month performance dropped to -12.43% while six-month performance fell -18.00%. The stock gained 13.31% in the past year, while it has lost -15.77% so far this year. A look at the trailing 12-month EPS for HUN yields 5.41 with Next year EPS estimates of 4.40. For the next quarter, that number is 1.15. This implies an EPS growth rate of 304.40% for this year and 1.64% for next year. EPS is expected to grow by 11.61% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 26.90%.
Float and Shares Shorts:
At present, 212.70 million HUN shares are outstanding with a float of 188.88 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.59 million, which was 3.62% higher than short shares on Jun 14, 2022. In addition to Mr. Peter R. Huntsman as the firm’s Chairman, Pres & CEO, Mr. Philip M. Lister serves as its Exec. VP & CFO.
Through their ownership of 85.46% of HUN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.40% of HUN, in contrast to 36.11% held by mutual funds. Shares owned by individuals account for 30.55%. As the largest shareholder in HUN with 8.56% of the stake, The Vanguard Group, Inc. holds 17,963,169 shares worth 17,963,169. A second-largest stockholder of HUN, BlackRock Fund Advisors, holds 11,383,496 shares, controlling over 5.43% of the firm’s shares. Starboard Value LP is the third largest shareholder in HUN, holding 10,434,108 shares or 4.97% stake. With a 3.33% stake in HUN, the Washington Mutual Investors Fund is the largest stakeholder. A total of 6,977,889 shares are owned by the mutual fund manager. The First Trust Rising Dividend Achie, which owns about 2.64% of HUN stock, is the second-largest Mutual Fund holder. It holds 5,534,992 shares valued at 156.92 million. Vanguard Total Stock Market Index holds 2.51% of the stake in HUN, owning 5,259,694 shares worth 149.11 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, HUN reported revenue of $2.39B and operating income of $304.00M. Over the past year, revenue came in at $9.01B while operating income stood at $973.00M. It generated $223.00M net income for the quarter, which came to $1.19B over the last twelve months. The EBITDA in the recently reported quarter was $391.00M and diluted EPS was $1.04. EBITDA for the full year was $1.40B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HUN since 20 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With HUN analysts setting a high price target of $67.00 and a low target of $32.00, the average target price over the next 12 months is $40.17. Based on these targets, HUN could surge 128.05% to reach the target high and rise by 8.92% to reach the target low. Reaching the average price target will result in a growth of 36.73% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. HUN will report FY 2022 earnings on 02/14/2023. Analysts have provided yearly estimates in a range of $4.70 being high and $3.91 being low. For HUN, this leads to a yearly average estimate of $4.35. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Huntsman Corporation surprised analysts by $0.15 when it reported $1.28 EPS against a consensus estimate of $1.13. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $1.19 and the low estimate is $1.03. The average estimate for the next quarter is thus $1.13.
Summary of Insider Activity:
Insiders traded HUN stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 1,182 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 605,313 while 297,093 shares were sold.