Exclusive Technical Analysis: What’s Next for Eastman Chemical Company After Forming Bearish Multiple Bottom Pattern?

Exclusive Technical Analysis: What's Next for Eastman Chemical Company After Forming Bearish Multiple Bottom Pattern?

The stock of Eastman Chemical Company (EMN) shows a multiple bottoms pattern with $75.92 target or 3.00% below today’s $78.27 share price. The 9 months chart pattern indicates high risk for the $11.59 billion company. It was reported on Jan, 11 by Finviz.com. If the $75.92 price target is reached, the company will be worth $347.70 million less.
Multiple bottoms are very good trading chart patterns. These patterns have a low break even failure rate and decent average rise in a bull market, giving them a solid performance rank. Back-tests of such patterns show that the break even failure rate is 4%, the average rise: 37%, the throwback rate: 64% and the percentage of stocks meeting their price targets: 64%. About 170,384 shares traded hands. Eastman Chemical Company (NYSE:EMN) has risen 3.72% since June 7, 2016 and is uptrending. It has underperformed by 3.71% the S&P500.

Analysts await Eastman Chemical Company (NYSE:EMN) to report earnings on January, 26. They expect $1.50 earnings per share, down 5.66% or $0.09 from last year’s $1.59 per share. EMN’s profit will be $222.25 million for 13.05 P/E if the $1.50 EPS becomes a reality. After $1.86 actual earnings per share reported by Eastman Chemical Company for the previous quarter, Wall Street now forecasts -19.35% negative EPS growth.

Eastman Chemical Company (NYSE:EMN) Ratings Coverage

Out of 12 analysts covering Eastman Chemical Company (NYSE:EMN), 8 rate it a “Buy”, 2 “Sell”, while 2 “Hold”. This means 67% are positive. $90 is the highest target while $73 is the lowest. The $82.50 average target is 5.40% above today’s ($78.27) stock price. Eastman Chemical Company has been the topic of 25 analyst reports since July 30, 2015 according to StockzIntelligence Inc. Cowen & Co maintained the shares of EMN in a report on Tuesday, August 23 with “Outperform” rating. KeyBanc Capital Markets maintained it with “Overweight” rating and $85 target price in Thursday, March 17 report. The company was upgraded on Tuesday, January 5 by Citigroup. The firm has “Buy” rating given on Monday, April 18 by Citigroup. The rating was initiated by RBC Capital Markets on Wednesday, October 14 with “Outperform”. Deutsche Bank maintained the shares of EMN in a report on Thursday, September 3 with “” rating. Nomura maintained Eastman Chemical Company (NYSE:EMN) on Monday, July 11 with “Buy” rating. The rating was downgraded by Citigroup to “Neutral” on Wednesday, September 7. As per Monday, May 2, the company rating was downgraded by CLSA. The company was maintained on Thursday, August 20 by Deutsche Bank.

According to Zacks Investment Research, “Eastman Chemical Company is a global chemical company with a broad portfolio of chemical, plastic, and fiber products. The company manufactures and sells chemicals and specialty polymers supplied to the inks, coatings, adhesives, sealants, and textile industries; fine chemicals; performance chemicals and intermediates; specialty plastics; polyester plastics such as polyethylene terephthalate sold under the trademark EASTAPAK polymers; and fibers.”

Insitutional Activity: The institutional sentiment decreased to 1.07 in 2016 Q3. Its down 0.17, from 1.24 in 2016Q2. The ratio dived, as 59 funds sold all Eastman Chemical Company shares owned while 159 reduced positions. 60 funds bought stakes while 173 increased positions. They now own 118.31 million shares or 3.92% less from 123.13 million shares in 2016Q2.
Bankshares Of Nova Scotia holds 0% of its portfolio in Eastman Chemical Company (NYSE:EMN) for 3,002 shares. Smithfield Tru owns 557 shares or 0.01% of their US portfolio. Tiaa Cref Management Lc has invested 0.01% of its portfolio in Eastman Chemical Company (NYSE:EMN). Daiwa Securities Group Inc accumulated 3,700 shares or 0% of the stock. Moreover, Livforsakringsbolaget Skandia Omsesidigt has 0.07% invested in Eastman Chemical Company (NYSE:EMN) for 32,973 shares. Ingalls Snyder Ltd Llc, a New York-based fund reported 4,618 shares. Profund Advsrs Ltd Co owns 16,913 shares or 0.05% of their US portfolio. Ajo Ltd Partnership has 0.02% invested in the company for 74,282 shares. Ahl Partners Limited Liability Partnership reported 27,426 shares or 0.07% of all its holdings. Denver Invest Advsr Limited Co has invested 0.04% of its portfolio in Eastman Chemical Company (NYSE:EMN). Amp Capital Ltd reported 144,913 shares or 0.06% of all its holdings. Commonwealth Of Pennsylvania Pub School Empls Retrmt last reported 8,436 shares in the company. Farmers Merchants Inc holds 69 shares or 0% of its portfolio. Blackrock holds 0.02% or 214,570 shares in its portfolio. Ladenburg Thalmann Fincl Services Inc owns 31,195 shares or 0.03% of their US portfolio.

Insider Transactions: Since November 16, 2016, the stock had 0 insider purchases, and 2 selling transactions for $600,440 net activity. On Wednesday, November 16 the insider HORNBAKER RENEE J sold $297,200. Another trade for 4,000 shares valued at $303,240 was made by DEMERITT STEPHEN R on Monday, December 5.

EMN Company Profile

Eastman Chemical Company (Eastman), incorporated on July 29, 1993, is a specialty chemicals firm that produces a range of materials, chemicals and fibers. The Firm operates through five divisions: Additives & Functional Products (AFP), Adhesives & Plasticizers (A&P), Advanced Materials (AM), Fibers, and Specialty Fluids & Intermediates (SFI). The Firm has over 50 manufacturing sites and equity interests in approximately four manufacturing joint ventures in approximately 15 countries.

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