Analysts at JPMorgan Chase & Co. have reduced their price target for Celanese Corporation from $47.00 to $40.00, reflecting a cautious outlook on the basic materials company’s stock. This adjustment, communicated in a research report circulated on Thursday, comes alongside a neutral rating.
Several other financial institutions have also weighed in on Celanese’s stock in recent days. KeyCorp set a more optimistic target price of $70.00, assigning the company an “overweight” rating. Meanwhile, Royal Bank of Canada upgraded its target from $53.00 to $63.00, maintaining a “sector perform” rating. Citigroup increased its target price from $52.00 to $65.00, while also issuing a neutral rating. In contrast, Deutsche Bank Aktiengesellschaft set a target price of $52.00, recommending a buy rating, and Barclays raised its target from $59.00 to $62.00, giving the stock an equal weight rating.
The consensus among analysts shows a mix of sentiments. One analyst has issued a sell rating, eleven have recommended holding the stock, and six have given it a buy rating. According to MarketBeat, Celanese currently has an average rating of “Hold” with a target price consensus of $59.94.
Current Stock Performance and Financials
On Thursday, shares of Celanese opened at $42.67. The company has a current ratio of 2.05 and a quick ratio of 1.11, indicating a strong liquidity position. However, its debt-to-equity ratio stands at 2.22, suggesting significant leverage. Over the past 12 months, the stock has fluctuated between a low of $36.29 and a high of $142.54. The 50-day moving average is $55.19, while the 200-day moving average is $53.96. The company boasts a market capitalization of $4.67 billion and an unusual P/E ratio of -2.88.
Celanese reported its earnings on August 11, 2023, posting an earnings per share (EPS) of $1.44, surpassing the consensus estimate of $1.38 by $0.06. The company generated $2.53 billion in revenue during the quarter, exceeding expectations of $2.50 billion. This marks a 4.5% decline in revenue compared to the same quarter the previous year.
Dividend Announcements and Insider Activity
Recently, Celanese announced a quarterly dividend of $0.03 per share, which was paid to shareholders on August 11, 2023. The ex-dividend date was set for July 29, 2023, marking an annualized dividend yield of 0.3%. The current dividend payout ratio is reported at -0.81%.
In notable insider activity, Mark Christopher Murray, Senior Vice President of Celanese, purchased 1,479 shares of the company’s stock on May 23, 2023, at an average price of $52.18 per share. This transaction amounted to approximately $77,174.22, increasing his holdings to 15,468 shares, valued at around $807,120.24. Insiders hold 0.33% of the stock.
Institutional ownership remains strong, with 98.87% of shares owned by institutional investors. Recent activity includes Altshuler Shaham Ltd. acquiring a new position valued at $25,000 and Strengthening Families & Communities LLC increasing its stake by 73.2% in the first quarter.
Celanese Corporation continues to be a key player in the chemical and specialty materials industry, manufacturing high-performance engineered polymers for various applications worldwide. Its operations are categorized into two segments: Engineered Materials and Acetyl Chain, focusing on specialty polymers for automotive, medical, industrial, and consumer electronics sectors.
