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Eastman Chemical Increases Prices on Some of Its Products

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Feb. 13 2017, Published 10:02 a.m. ET

Eastman Chemical hikes prices

Last week, Eastman Chemical (EMN) announced price hikes for several of its products including amines, plasticizers, polymer raw materials, acids, and alcohols. Eastman increased the prices due to increased operating costs arising from the increase in raw material prices. These price hikes are effective beginning March 1, 2017.

The price rises were primarily in the North American region, which constituted close to 50% of Eastman’s revenue in 4Q16 on a regional basis. The price rise of these products could impact EMN’s revenue positively in 1Q17 provided volumes stay the same. However, since the price rise was driven by an increase in raw material prices, we can expect an increase in the cost of goods sold.

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Eastman Chemical’s stock price

For the week ended February 10, 2017, EMN rose 1.9% and closed at $79.36. EMN’s stock price traded 8.4% above the 100-day moving average price of $73.19, indicating an upward trend in the stock. On a year-to-date basis, EMN has moved up 5.5%. EMN’s 14-day relative strength index (or RSI) of 59 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that the stock is overbought, and a score of 30 indicates that the stock is oversold. EMN’s 52-week low is $60.60, and its 52-week high is $80.48. EMN outperformed the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which dropped 0.1% for the week ended February 10, 2017.

The top holdings of the fund include CF Industries (CF), Newmont Mining (NEM), and Sherwin-Williams (SHW), each having weights of 4.5% in the fund’s portfolio as of February 10, 2017.

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