Eastman Chemical increases prices
On February 14 and 15, 2017, Eastman Chemical (EMN) announced a price increase for all types of acetic acid by $0.03 per pound, effective in North America and Latin America. It also increased prices of AQ polymers by $0.50 per pound in North America, Latin America, and Asia-Pacific.
The price increases will be effective from March 1, 2017. They were mainly driven by increased market demand and rises in raw material costs.
Price hikes for these products could have a positive impact on EMN’s revenue in 1Q17 as long as volumes aren’t affected adversely. 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.
Eastman Chemical stock
For the week ended February 17, 2017, EMN closed at $80.25, rising 1.1% for the week. EMN stock was trading 8.5% above the 100-day moving average of $73.96, indicating an upward trend in the stock. On a year-to-date basis, EMN has risen 6.7%.
EMN has a 14-day RSI (relative strength index) of 61, which indicates that the stock is neither overbought nor oversold. An RSI of 70 or above indicates that a stock is overbought. An RSI of 30 or below suggests that a stock is oversold. EMN’s 52-week low is $61.53, and its 52-week high is $81.08.
EMN outperformed the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which fell 0.30% for the week ended February 17, 2017. RTM has invested 4.1% of its portfolio in Eastman Chemical. The top holdings of RTM include CF Industries (CF), Newmont Mining (NEM), and Sherwin-Williams (SHW), with weights of 4.5%, 4.3%, and 4.4%, respectively, as of February 17, 2017.
Correction: This article originally described prices of AQ polymers increasing by $0.15 per pound rather than $0.50 per pound in North America, Latin America, and Asia-Pacific. We regret this error.