On September 22, 2023, Nordea Investment Management AB made a significant reduction in its stake in Huntsman Co. (NYSE:HUN) during the second quarter, as reported in its most recent disclosure with the Securities and Exchange Commission. According to the filing, the investment company owned 149,091 shares of Huntsman’s stock after selling 59,341 shares in the quarter. This decrease reflects a 28.5% reduction in Nordea Investment Management AB’s ownership of the basic materials company. The total value of this stake was estimated to be $4,063,000.
Huntsman Co. has not only witnessed a change in its ownership structure but has also provided news regarding its quarterly dividend payments. It recently announced that shareholders of record on Friday, September 15th will receive a quarterly dividend of $0.2375 per share on Friday, September 29th. This dividend amount represents an annualized payout of $0.95 per share and offers a dividend yield of approximately 3.87%. It is worth noting that the ex-dividend date for this payment is Thursday, September 14th.
With regards to Huntsman’s overall financials, it is important to highlight its dividend payout ratio which currently stands at around 98.96%. This ratio illustrates the proportion of earnings allocated towards dividends and signifies that Huntsman utilizes nearly all of its earnings for shareholder distributions.
In conclusion, Nordea Investment Management AB has significantly reduced its stake in Huntsman Co., resulting in a lower ownership percentage despite still holding considerable shares in the company. Additionally, shareholders can anticipate a quarterly dividend payout at the end of September based on their records as of mid-September. The dividend amount corresponds to an attractive yield for investors seeking income from their investments. Nevertheless, it remains intriguing to observe how Huntsman manages its high dividend payout ratio going forward as it continues to navigate through market uncertainties and operational challenges.
Huntsman Corporation
HUN
Buy
Updated on: 02/12/2023
Financial Health
Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Recent Moves and Analyst Views Impact Huntsman Corporation’s Future
Institutional investors and hedge funds have recently made moves regarding their stakes in Huntsman Corporation (NYSE: HUN). BlackRock Inc. increased its holdings in the company by 1.6% in the first quarter, now owning 13,441,732 shares valued at $367,766,000. Dimensional Fund Advisors LP also boosted its stake by 0.8% during the same period, now owning 9,501,111 shares worth $259,942,000. FMR LLC increased its stake by a staggering 61.7%, now owning 7,976,147 shares worth $218,227,000. Stifel Financial Corp and Macquarie Group Ltd also raised their stakes by 0.8% and 1.9%, respectively.
Research analysts have different views on Huntsman’s stock performance as of late. Royal Bank of Canada raised their target price from $26 to $30 and gave the company a “sector perform” rating while Deutsche Bank Aktiengesellschaft lowered theirs from $29 to $27. Morgan Stanley reaffirmed an “overweight” rating with a price target of $30. StockNews.com began coverage with a “hold” rating and 58.com reaffirmed an “initiates” rating.
HUN opened at $24.55 on Friday with a 50-day simple moving average of $27.42 and a 200-day simple moving average of $26.79. The company currently has a market cap of $4.37 billion with a price-to-earnings ratio of 25.57 and a beta of 1.16.
Huntsman released its quarterly earnings results on August 1st, reporting earnings per share (EPS) of $0.22 for the quarter which fell short of analysts’ consensus estimates of $0.30 by ($0.08). The company’s net margin was 2.64% with a return on equity of 5.75%. Its revenue for the quarter was $1.60 billion, compared to analyst estimates of $1.70 billion. Year-over-year, the company’s revenue was down 26.5%. Analysts expect Huntsman to post an EPS of 0.82 for the current fiscal year.
It remains to be seen how these recent developments will shape Huntsman Corporation’s future and influence investor sentiment in the coming months.
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