EVP Of Eastman Chemical Makes $252K Buy

On August 28, Willian T. McLain Jr., EVP at Eastman Chemical EMN executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Jr. bought 3,670 shares of Eastman Chemical, amounting to a total of $252,239.

At Friday morning, Eastman Chemical shares are up by 4.27%, trading at $71.09.

About Eastman Chemical

Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemical company with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.

Key Indicators: Eastman Chemical's Financial Health

Negative Revenue Trend: Examining Eastman Chemical's financials over 3 months reveals challenges. As of 30 June, 2025, the company experienced a decline of approximately -3.22% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 22.13%, suggesting potential challenges in cost control and profitability compared to its peers.
• Earnings per Share (EPS): With an EPS below industry norms, Eastman Chemical exhibits below-average bottom-line performance with a current EPS of 1.22.

Debt Management: Eastman Chemical's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.88, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.59 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.86, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 7.26, Eastman Chemical could be considered undervalued.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Eastman Chemical's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.