Kraton (NYSE:KRA) Downgraded to “Sell” at Zacks Investment Research

Kraton (NYSE:KRA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Friday, Zacks.com reports.

According to Zacks, “Kraton Corp is a producer of styrenic block copolymers, specialty polymers and performance products derived from pine wood pulping co-products. The company’s product are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving and roofing applications. Kraton Corporation, formerly known as Kraton Performance Polymers Inc., is headquartered in Houston, Texas. “

KRA has been the topic of a number of other research reports. SunTrust Banks lowered their target price on Kraton from to and set a “buy” rating on the stock in a report on Tuesday, February 25th. Loop Capital lowered their target price on Kraton from $38.00 to $30.00 and set a “buy” rating on the stock in a report on Friday, February 28th. They noted that the move was a valuation call. Stifel Nicolaus lowered their target price on Kraton from $10.00 to $8.00 and set a “hold” rating on the stock in a report on Tuesday. Finally, ValuEngine lowered Kraton from a “hold” rating to a “sell” rating in a report on Tuesday, March 3rd. Three analysts have rated the stock with a sell rating, two have issued a hold rating and two have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $24.67.

Shares of NYSE KRA opened at $7.06 on Friday. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.78 and a current ratio of 1.77. The firm has a market cap of $204.15 million, a price-to-earnings ratio of 4.47 and a beta of 2.66. The business’s 50-day simple moving average is $11.55 and its 200-day simple moving average is $21.54. Kraton has a 52 week low of $4.45 and a 52 week high of $38.58.

Kraton (NYSE:KRA) last issued its quarterly earnings data on Wednesday, February 26th. The specialty chemicals company reported ($0.06) EPS for the quarter, missing the Zacks’ consensus estimate of $0.06 by ($0.12). The company had revenue of $408.52 million for the quarter, compared to analyst estimates of $391.00 million. Kraton had a net margin of 2.84% and a return on equity of 11.81%. During the same period in the prior year, the company posted ($0.67) EPS. As a group, equities research analysts forecast that Kraton will post 0.42 earnings per share for the current year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rothschild & Co. Asset Management US Inc. grew its holdings in Kraton by 19.2% in the 4th quarter. Rothschild & Co. Asset Management US Inc. now owns 1,016,079 shares of the specialty chemicals company’s stock valued at $25,727,000 after buying an additional 163,838 shares during the last quarter. State Street Corp grew its holdings in shares of Kraton by 3.8% during the 4th quarter. State Street Corp now owns 962,580 shares of the specialty chemicals company’s stock worth $24,373,000 after purchasing an additional 35,288 shares in the last quarter. Evermore Global Advisors LLC grew its holdings in shares of Kraton by 8.9% during the 4th quarter. Evermore Global Advisors LLC now owns 828,900 shares of the specialty chemicals company’s stock worth $20,988,000 after purchasing an additional 67,668 shares in the last quarter. Royce & Associates LP grew its holdings in shares of Kraton by 18.9% during the 4th quarter. Royce & Associates LP now owns 626,644 shares of the specialty chemicals company’s stock worth $15,867,000 after purchasing an additional 99,500 shares in the last quarter. Finally, Weber Alan W grew its holdings in shares of Kraton by 13.2% during the 4th quarter. Weber Alan W now owns 602,000 shares of the specialty chemicals company’s stock worth $15,243,000 after purchasing an additional 70,000 shares in the last quarter. 98.23% of the stock is currently owned by hedge funds and other institutional investors.

Kraton Company Profile

Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Polymer and Chemical. The Polymer segment offers performance products, including styrene-butadiene-styrene and styrene-isoprene-styrene; and specialty polymers, such as hydrogenated styrenic block copolymers, as well as isoprene rubber and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings.

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