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Eastman Chemical CEO Mark Costa sells $1.9 million in stock

Published 04/12/2024, 10:06 am
EMN
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Mark J. Costa, CEO and Board Chair of Eastman Chemical Co. (NYSE:EMN), a company with a market capitalization of $11.9 billion and a "GOOD" Financial Health score according to InvestingPro, recently sold 18,278 shares of the company's common stock. The shares were sold on November 29 at a price of $105 each, amounting to a total transaction value of approximately $1.9 million. Following this sale, Costa retains direct ownership of 395,699 shares. The stock currently trades at an attractive P/E ratio of 13.6x and offers a 3.1% dividend yield, which has been maintained for 31 consecutive years.

In addition to the sale, Costa exercised stock options to acquire 18,278 shares at a price of $65.16 per share, which were subsequently sold. This transaction is part of his ongoing management of his holdings in the company. For deeper insights into insider transactions and comprehensive analysis, including 8 additional ProTips, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Eastman Chemical Company (NYSE:EMN) reported its third-quarter earnings for 2024, demonstrating a strategic approach to weather economic challenges. Despite the hurdles, the company achieved mid-single-digit growth in volume mix and anticipates modest underlying growth in 2025, driven largely by innovation and potential economic recovery. The company also faced startup challenges with its Kingsport methanolysis project, but expects an improved performance in the upcoming year.

A new Texas facility, backed by Department of Energy funding and Pepsi as an anchor customer, has been approved, reinforcing Eastman Chemical's growth strategy. The company is also committed to energy efficiency and decarbonization, which are expected to drive cost savings.

Mizuho (NYSE:MFG) Securities recently updated its outlook on Eastman Chemical, increasing the price target to $117.00, up from the previous target of $113.00, while maintaining a Neutral rating on the stock. The adjustment followed a tour of Eastman Chemical's first commercial scale PET chemical recycling plant, suggesting a significant barrier to entry for potential competitors. The new price target is based on a raised multiple of 12.5 times the next twelve months plus one (NTM+1) earnings per share (EPS) estimate of $9.38, which remains unchanged.

CEO Mark Costa expressed optimism about market stabilization and the potential impact of interest rates on consumer affordability, which should foster recovery and demand stability. CFO Willie MacLean indicated that operational stability in 2025 will bring further operating leverage. These are the recent developments for Eastman Chemical.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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