Zacks Investment Research Downgrades Kraton (NYSE:KRA) to Sell


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Kraton (NYSE:KRA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday, 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. “

Separately, TheStreet raised Kraton from a “d+” rating to a “c-” rating in a research note on Friday, March 19th.

Shares of KRA stock opened at $38.01 on Wednesday. The stock has a market cap of $1.22 billion, a price-to-earnings ratio of -5.34 and a beta of 2.34. The stock has a 50-day moving average of $37.28 and a 200-day moving average of $32.84. The company has a current ratio of 1.64, a quick ratio of 0.69 and a debt-to-equity ratio of 1.30. Kraton has a 1-year low of $10.34 and a 1-year high of $45.88.

Kraton (NYSE:KRA) last issued its quarterly earnings results on Wednesday, April 28th. The specialty chemicals company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.30 by $0.23. Kraton had a positive return on equity of 3.40% and a negative net margin of 14.37%. Sell-side analysts forecast that Kraton will post 1.13 earnings per share for the current year.

In related news, SVP Vijay Mhetar sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 22nd. The stock was sold at an average price of $40.00, for a total transaction of $160,000.00. Following the completion of the sale, the senior vice president now owns 39,354 shares of the company’s stock, valued at $1,574,160. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 3.32% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its holdings in Kraton by 5.9% in the fourth quarter. BlackRock Inc. now owns 4,879,400 shares of the specialty chemicals company’s stock worth $135,597,000 after acquiring an additional 273,717 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Kraton by 1.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 450,974 shares of the specialty chemicals company’s stock worth $12,533,000 after acquiring an additional 6,053 shares in the last quarter. Morgan Stanley boosted its holdings in Kraton by 264.2% in the fourth quarter. Morgan Stanley now owns 424,456 shares of the specialty chemicals company’s stock worth $11,796,000 after acquiring an additional 307,904 shares in the last quarter. Norges Bank bought a new position in Kraton in the fourth quarter worth approximately $10,422,000. Finally, Sei Investments Co. boosted its holdings in Kraton by 31.2% in the third quarter. Sei Investments Co. now owns 354,157 shares of the specialty chemicals company’s stock worth $6,311,000 after acquiring an additional 84,221 shares in the last quarter. 93.39% of the stock is owned by institutional investors and hedge funds.

Kraton Company Profile

Kraton Corporation manufactures and sells styrenic block copolymers, specialty polymers, and other products 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 for paving and roofing application; styrene-isoprene-styrene for personal care application; ethylene-vinyl acetate, polyolefins, and metallocene polyolefins for adhesives application; and specialty polymers, such as hydrogenated styrenic block copolymer, isoprene rubber, and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings.

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