Celanese increases prices of acesulfame potassium
On March 23, Celanese (CE) announced that prices of acesulfame potassium, sold globally under the Sunett trademark, would increase to three euros (or $3.21) per kilogram. The prices will be effective April 1, 2017, or as contracts allow. The impact of the price increase could be visible in its 2Q17 earnings.
Sunett is a sweetener used in a variety of beverages, confections, and dairy products throughout the world and is known for its reliability in regards to quality and supply.
Celanese’s stock performance for the week ended March 24
For the week ended March 24, 2017, Celanese closed at $89.47, falling 1.8% for the week. The stock was trading 7.2% above its 100-day moving average of $83.45, indicating an upward trend. On a year-to-date basis, Celanese has risen 13.6%.
Celanese’s 14-day RSI (relative strength index) of 50 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold.
Analysts have given Celanese a 12-month target price of $94.40, implying a potential return of 5.5% from its closing price of $89.47 on March 24, 2017. Celanese outperformed the PowerShares DWA Basic Materials Momentum ETF (PYZ), which fell 3.9% for the week ended March 24, 2017. PYZ invests 3.4% of its holdings in Celanese. The other top holdings of the fund include Chemours (CC), NewMarket (NEU), and FMC (FMC) with weights of 5.5%, 3.7%, and 3.8%, respectively, as of March 24, 2017.