5 Dec

Why Did Ashland Gain 11% in November?

WRITTEN BY Peter Neil

Ashland gained 11% in November

In November, Ashland (ASH) was the biggest gainer among specialty chemical stocks. Ashland gained 11% in November and outperformed the S&P 500. The S&P 500 (SPY) gained 1.8% in November.

Why Did Ashland Gain 11% in November?

What drove the stock up?

Ashland reported an adjusted EPS of $0.97 in the fourth quarter—an increase of 24.4% on a year-over-year basis. On a reporting basis, Ashland reported an EPS of $0.15—compared to a loss of $0.92 per share. Ashland’s revenues grew 9% during the fourth quarter to $956 million.

Ashland has entered into a definitive agreement to sell its composites business and butanediol facility in Marl, Germany, to INEOS Enterprises. The deal is valued at $1.1 billion. Ashland said that the amount will be used to pay off the debt. Currently, Ashland has a debt of $2.2 billion. After Ashland pays off its debt, the debt is expected to decrease 50%.

Stock update

The gain in the Ashland’s stock price resulted in the trend reversal in the stock’s 100-day moving average price. The stock traded marginally above the 100-day moving average price of $81.75. Ashland’s 100-day moving average price is stabilizing in the range of $81–$82. On a year-to-date basis, Ashland has gained 13.9%. Celanese (CE), Eastman Chemical (EMN), and Westlake Chemical (WLK) have declined 10.0%, 16.2%, and 33.9%, respectively.

Latest articles

On November 14, Carl Icahn's Icahn Capital Management filed its form 13F. In the third quarter, it included two new stocks.

Dish Network reported Q3 revenues of $3.17 billion, down 6.7% year-over-year. Dish reported adjusted earnings per share of $0.66—down 19.5% YoY.

It’s been quite the whipsaw week for cannabis stocks, to put it mildly. First, there was the “Drake spike.” Then came the earnings disappointments.

There seems to be no end to the cannabis sector’s woes. Several prominent cannabis players reported disappointing results in the latest earnings season.

Applied Materials (AMAT) posted a fiscal 2019 fourth-quarter revenue beat and a strong fiscal 2020 first-quarter outlook yesterday.

Roku (ROKU) stock has risen more than 5% today after Bank of America (BAC) analyst Ziv Israel increased its target price from $150 to $160.