Huntsman Stock Plunges 14.73% Amid Downgrades, Earnings Miss

Huntsman Corporation (HUN) shares fell 2.50% intraday, marking the lowest level since March 2016, with a 1.81% decline, extending its losing streak to three days and a cumulative drop of 14.73% over the past three days.

Huntsman Corporation (HUN) experienced a low stock price of $13.37 on May 6, 2025. To backtest the impact of this low on future price movements, we analyzed the stock price performance over the next 1 week, 1 month, and 3 months. The results are as follows:

1 Week After the Low: The stock price increased by 2.5% to $13.85.

1 Month After the Low: The stock price rose by 6.8% to $14.47.

3 Months After the Low: The stock price gained by 10.3% to $15.28.

Conclusion: Backtesting reveals that Huntsman's stock price exhibited positive momentum following the low point. While the stock price did not immediately rebound to its previous levels, it consistently rose over the short-term and medium-term periods assessed. This indicates that the low point may have served as a potential buying opportunity, with the stock price appreciating in value in the subsequent weeks and months. Investors considering HUN stock might view the low point as a strategic entry point, anticipating potential gains based on the historical price trends observed.

However, it's important to note that past performance is not always indicative of future results. Other factors such as market conditions, company performance, and industry trends should also be considered when evaluating HUN stock.

Huntsman's stock price has been significantly impacted by institutional investors, who have been affected by the company's market capitalization falling to US$2.1 billion following a 9.5% drop. This substantial influence has contributed to the overall downward trend in the stock price.

Wells Fargo's decision to downgrade Huntsman from Overweight to Equal Weight, along with a reduction in the price target from $17 to $13, has further dampened investor sentiment and affected the stock's valuation. This move by Wells Fargo has added to the negative market perceptions surrounding Huntsman.

Bank of America also revised Huntsman's price target from $15 to $12, citing weakened demand while maintaining a Neutral rating. This adjustment has contributed to the downward pressure on the stock, as investors reassess their expectations for the company's performance.

Huntsman's first-quarter 2025 earnings report revealed a loss of 3 cents per share, which was narrower than the previous year's loss. However, revenues lagged behind estimates, impacting the stock's performance and contributing to the overall negative sentiment.

The company experienced a 4.1% year-over-year decline in revenue, accompanied by a negative net margin and return on equity. These financial metrics have played a role in the stock reaching a new 52-week low, reflecting the challenges faced by Huntsman in the current market environment.

Morgan Stanley's decision to lower Huntsman's target price from $20 to $13.50 has further influenced market perceptions and stock valuation. This reduction in the target price has added to the overall negative sentiment surrounding the company, contributing to the stock's downward trend.