Analysts at JPMorgan Chase & Co. have reduced their price target for Celanese Corporation (NYSE: CE) from $47.00 to $40.00, as detailed in a research report released to investors on Thursday. The firm has assigned a neutral rating to the company’s stock, reflecting a cautious outlook on its performance in the basic materials sector.
Other analysts have also recently provided their insights on Celanese. KeyCorp set a more optimistic target price of $70.00 and rated the stock as “overweight” in a report on Wednesday. Meanwhile, the Royal Bank of Canada reaffirmed a “sector perform” rating and raised its target price to $63.00, up from a previous estimate of $53.00. Citigroup increased its target from $52.00 to $65.00, maintaining a neutral stance, while Deutsche Bank Aktiengesellschaft set its target at $52.00 with a “buy” recommendation. Finally, Barclays adjusted its target price from $59.00 to $62.00, categorizing the stock as “equal weight.”
The general consensus among analysts indicates a mixed outlook for Celanese. Currently, one investment analyst has rated the stock as a sell, eleven have issued hold ratings, and six have provided buy ratings. According to MarketBeat, the average rating stands at “Hold,” with a consensus target price of $59.94.
Celanese Stock Performance and Financial Update
On Thursday, shares of Celanese opened at $42.67. Financial metrics reveal a current ratio of 2.05, a quick ratio of 1.11, and a debt-to-equity ratio of 2.22. Over the past year, the stock has fluctuated significantly, with a low of $36.29 and a high of $142.54. As of now, the company boasts a market capitalization of approximately $4.67 billion, a price-to-earnings (P/E) ratio of -2.88, and a P/E/G ratio of 1.57.
Celanese recently reported its earnings results for the quarter ending August 11, 2023. The company posted an earnings per share (EPS) of $1.44, surpassing the consensus estimate of $1.38 by $0.06. The company’s revenue for the quarter was $2.53 billion, exceeding the estimate of $2.50 billion, although it represented a 4.5% decline compared to the same period last year.
Dividend Announcement and Insider Activity
Celanese also declared a quarterly dividend, which was paid on August 11, 2023. Shareholders of record on July 29 received a dividend of $0.03 per share, resulting in an annualized dividend yield of 0.3%. Currently, the company’s dividend payout ratio is -0.81%.
In related news, Mark Christopher Murray, Senior Vice President at Celanese, purchased 1,479 shares on May 23, 2023, at an average price of $52.18 per share, amounting to a total transaction value of $77,174.22. Following this acquisition, Murray’s total holdings increased by 10.57% to 15,468 shares, which are valued at approximately $807,120.24. Insider ownership currently stands at 0.33% of the stock.
Recent institutional activity shows a number of large investors modifying their stakes in Celanese. Altshuler Shaham Ltd. initiated a new position in the fourth quarter valued at $25,000. Strengthening Families & Communities LLC increased its stake by 73.2% in the first quarter, now holding 440 shares valued at $25,000. Other significant changes include Summit Securities Group LLC acquiring a new position worth $30,000 and State of Wyoming boosting its stake by 122.5%, now owning 485 shares valued at $34,000. Institutional investors currently own approximately 98.87% of Celanese’s stock.
Celanese Corporation, a prominent player in the chemical and specialty materials sector, manufactures and sells high-performance engineered polymers for both national and international markets. The company operates through two key segments: Engineered Materials and Acetyl Chain, focusing on specialty polymers for automotive, medical, industrial, and consumer electronics applications.