HUN

Huntsman ($HUN) Chairman Invests $1 Million as Stock Approaches 52-Week Lows

05/08/2025 11:32

The Chairman of Huntsman Corporation ($HUN), Peter Huntsman, has executed significant stock purchases as the chemical manufacturer's shares trade near 52-week lows. According to documents filed with the Securities and Exchange Commission on May 7, Chairman Peter Huntsman purchased 45,000 shares at an average price of $11.19 per share, totaling approximately $503,393. This follows another substantial purchase just two days earlier on May 5, when he acquired 42,000 shares at $11.74 per share, for a total of $492,954. Combined, these transactions represent an approximately $1 million investment in 87,000 shares within a single week. Huntsman's stock has experienced a steep decline in recent months. After trading above $24 in late September last year, the share price has fallen to $11.21 (as of May 7), representing a drop of approximately 53% over the past year. The decline accelerated in early April, when shares plummeted from $15.52 on April 2 to $12.25 a week later, and have failed to recover since. Notably, the Chairman's purchases came immediately after the company's disappointing quarterly earnings announcement. On May 1, Huntsman reported Q1 2025 results with revenue of $1.41 billion (below estimates of $1.489 billion) and an adjusted net loss of $19 million. This represents a 4.1% year-over-year revenue decline, significantly underperforming analyst expectations. Following the earnings release, the stock fell further to $11.40 by May 6. Chairman Peter Huntsman has been consistently acquiring shares throughout the year. In early March, he purchased a total of 30,000 shares worth approximately $483,000 over two consecutive days. This pattern suggests a strategy of accumulating shares during price declines. Huntsman is a global chemical manufacturer operating primarily in three segments: Polyurethanes, Performance Products, and Advanced Materials. The company serves various industries including automotive, aerospace, construction, and consumer products. However, it has recently faced challenges, including the negative impact of U.S. tariff policies on its Asian market business. Industry experts have expressed concerns about Huntsman's current situation. On April 15, Bank of America downgraded Huntsman to 'neutral' and reduced its price target from $22 to $15, reflecting concerns about the broader chemical industry challenges and Huntsman's cyclical market exposure. The current average analyst price target stands at approximately $16, suggesting a potential upside of about 43% from the current share price. Huntsman's financial health is also a focus of attention. While the company maintains a moderate debt-to-asset ratio of 25.8%, recent losses raise concerns about cash flow sustainability. Particularly worrying is the company's return on capital employed (ROCE) of 1.5%, significantly below the industry average of 8.8%, indicating inefficient capital utilization. Insider purchases are often interpreted as a signal that management holds a positive outlook on the company's future. The Chairman's substantial share acquisitions over a short period are particularly noteworthy. However, investors should consider comprehensive factors beyond insider buying, including potential performance improvements, industry conditions, and the company's ability to execute competitive strategies. With a current market capitalization of approximately $1.95 billion, Huntsman possesses recovery potential through its diverse product portfolio. However, challenges in the chemical industry and recent disappointing performance remain significant hurdles. Whether Peter Huntsman's continued share purchases reflect confidence in the company's current state and future, or simply represent an opportunity to increase his stake at low prices, will become clearer through performance and strategic movements in the coming months.

You can receive notifications when news is published.