Venator to Close 2 Facilities as Part of Business Improvement
Venator reveals business improvement plan
On September 18, 2017, Venator Materials (VNTR), a spin-off of Huntsman (HUN), announced a $90.0 million business improvement plan. As part of this plan, Venator intends to close its manufacturing facilities at Easton and St. Louis color pigments by the end of 2017. It claims that the company has ramped up the Augusta facility, which will ensure the availability of the products to its customers.
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Venator’s president and chief executive officer Simon Turner said, “We continue to drive improvement in our Performance Additives segment and this latest milestone forms part of the $90 million business improvement plan that will be completed by the end of 2018.”
Venator stock performance
Venator had a strong week with its stock rising 2.6% and closing at $22.88. Venator was listed on the NYSE (New York Stock Exchange) on August 3, 2017. Since then, the stock has risen 10.8%. Analysts have recommended a target price of $23.82, implying a return potential of 4.1% from the closing price on September 22, 2017. VNTR’s 14-day RSI (relative strength index) of 69 indicates that the stock is moving closer to the overbought situation. An RSI of 70 and above indicates that the stock is moving into the overbought situation, while an RSI of 30 and below shows that the stock has moved into an oversold position temporarily.
Investors can hold Venator indirectly by investing in the First Trust US Equity Opportunities ETF (FPX), which has invested 0.20% of its portfolio in Venator. The other top holdings of the fund include AbbVie (ABBV), PayPal (PYPL), and Shire (SHPG) with weights of 9.9%, 7.0%, and 4.2%, respectively, as of September 22, 2017.