Drilling Down Into Huntsman Corporation (HUN)

Huntsman Corporation (HUN) is an interesting player in the Basic Materials space, with a focus on Chemicals – Major Diversified. The stock has been active on the tape, currently trading at $30.77, down from yesterday’s close by -3.27%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Huntsman Corporation (HUN) currently trades with a market capitalization of $7.35 Billion. That value represents a market adjusting for revenues that have been growing by 18.46 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For HUN, the company currently has $451 Million of cash on the books, which is offset by $29 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $693 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.61 on a per share basis this quarter. Perhaps, that suggests something about why 71.43% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Huntsman Corporation recorded a 52-week high of $32.59. It is now trading 1.82% off that level. The stock is trading $29.83 its 50-day moving average by -0.94%. The stock carved out a 52-week low down at $18.93.

In recent action, Huntsman Corporation (HUN) has made a move of -0.71% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.31, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 4.70% with $200.83 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HUN.

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