Huntsman (HUN) | News Based Sentiment Analysis

• On September 9th, Huntsman reported a disappointing Q2 2025, with a diluted loss per share of -$0.92 compared to $0.13 in the prior year. The adjusted diluted loss of -$0.20 missed analyst expectations by a significant 66.67%, and revenue fell 7.4% year-over-year to $1.46 billion. This poor performance triggered a -5.05% one-day drop in the stock price and a -4.74% decline over five days.
• Despite the weak Q2 results, institutional investors continued to show interest in Huntsman. As of September 4th, Dark Forest Capital Management LP held a $5.57 million stake, while Cubist Systematic Strategies LLC purchased 706,155 shares. Northern Trust Corp and Raymond James Financial Inc. also increased their positions, suggesting some investors still see potential.
• Huntsman is taking steps to address its financial challenges, announcing a restructuring program expected to reduce the global workforce by nearly 10%, primarily in Europe. While painful, this move aims to improve efficiency and reduce costs. Free cash flow did improve to $55 million, up from $5 million in the prior year, offering a glimmer of hope.
• Leadership changes were announced on September 4th, with David Stryker retiring as General Counsel and Julia Wright appointed as his replacement, effective October 13th, 2025. Stryker will transition to an advisory role, indicating a planned and orderly succession.
• Analyst sentiment is mixed. Mizuho downgraded Huntsman to 'Underperform' on September 12th, reducing its price target by 18.18% to $9.00. However, Jefferies maintained a 'Buy' rating, albeit with a lowered price target of $14.00, citing potential for recovery in Huntsman’s MDI business.
• Huntsman’s shares are yielding above 9% based on its annualized quarterly dividend of $1, with the ex-dividend date being September 15th and payment on September 30th, 2025. However, the dividend payout ratio remains unusual at -51.28%, raising questions about its sustainability.
• Short interest in Huntsman increased by 58.4% in August, indicating growing pessimism among some traders. Despite this, institutional investors still own a substantial 84.81% of the company’s stock, suggesting long-term confidence from major players.

The Investment Story: Huntsman faced a difficult second quarter with disappointing financial results, prompting analyst downgrades and increased short interest. However, continued institutional investment, a high dividend yield, and restructuring efforts offer potential counterbalancing factors.

What It Means for Investors: The recent earnings miss and lowered price targets suggest potential downside risk in the short term. Investors should carefully consider the company's debt levels, restructuring plans, and the sustainability of its dividend before making investment decisions.

Looking Ahead: Investors should monitor the progress of the restructuring program, the impact of the workforce reduction, and the company's performance in the coming quarters. The next earnings report will be crucial in determining whether the Q2 results were an anomaly or a sign of a more prolonged downturn.

The Bottom Line: Huntsman presents a challenging investment picture. While the current headwinds are concerning, the company's strong institutional backing and commitment to dividends could provide some support for patient investors willing to accept significant risk.