On November 14, California-based First Wilshire Securities Management disclosed a purchase of 431,403 additional Huntsman shares, increasing its stake by an estimated $2.87 million.
What Happened
First Wilshire Securities Management reported in a November 14 SEC filing that it bought 431,403 additional shares of Huntsman (HUN +8.94%) during the third quarter. The post-trade position totaled about 1.13 million shares worth $10.13 million at quarter-end. The increase reflected both new purchases and changes in Huntsman’s share price over the period.
What Else to Know
Following the buy, Huntsman represents 2.7% of First Wilshire’s 13F assets after the transaction.
Top five holdings after the filing:
- NASDAQ:EZPW: $41.65 million (11.1% of AUM)
- NASDAQ:LBTYA: $26.48 million (7.0% of AUM)
- NASDAQ:CAMT: $21.68 million (5.8% of AUM)
- NYSE:ECVT: $19.12 million (5.1% of AUM)
- NYSEMKT:SGOV: $17.97 million (4.8% of AUM)
As of Wednesday, Huntsman shares were priced at $9.90, down a staggering 45% over the past year and well underperforming the S&P 500, which is instead up about 15%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.78 billion |
| Net Income (TTM) | ($329.00 million) |
| Dividend Yield | 3.5% |
| Price (as of Wednesday) | $9.90 |
Company Snapshot
- Huntsman Corporation manufactures and sells differentiated organic chemical products, including polyurethanes, performance products, advanced materials, and textile effects, serving industries such as automotive, construction, electronics, and textiles.
- The company operates a diversified chemicals business model, generating revenue through the production and global distribution of specialty chemical products used in a wide range of industrial and consumer applications.
- Its primary customers include manufacturers in the adhesives, aerospace, automotive, construction, packaging, medical, power generation, and textile sectors worldwide.
Huntsman Corporation is a global chemicals company that leverages its expertise in specialty chemicals to provide innovative solutions across multiple end markets, focusing on value-added products and customer-driven applications. Its diversified product portfolio and international presence position it to address evolving industrial and consumer needs in the basic materials sector.
Foolish Take
Huntsman shares have been severely punished alongside the broader chemicals cycle, yet the company continues to throw off real cash even in a weak pricing environment. In the third quarter, Huntsman generated $200 million in operating cash flow and $157 million in free cash flow, despite reporting a GAAP net loss of $25 million and lower adjusted EBITDA year over year. That suren’t isn’t nothing. Meanwhile, management has leaned hard into balance sheet preservation. Capital spending remains tightly controlled, restructuring programs targeting more than $100 million in savings are still on track, and liquidity stood at roughly $1.4 billion at quarter's end. The controversial move, however, was the 65% dividend reset, which likely signals realism rather than distress.
Context also matters. This fund’s portfolio leans toward out-of-favor, asset-heavy businesses where sentiment has swung too far. Compared with higher-multiple holdings elsewhere in the book, Huntsman offers operating leverage if pricing stabilizes and volumes continue to recover modestly. Ultimately, it’s important to note that Huntsman isn’t likely a quick rebound story, but it is a balance-sheet and cash-flow durability bet in a deeply cyclical industry, where patience, not momentum, does the heavy lifting.
Glossary
13F assets under management: The value of securities a fund manager reports to the SEC in quarterly 13F filings.
AUM (Assets Under Management): The total market value of investments that a fund or manager oversees on behalf of clients.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Trailing twelve months (TTM): Financial data covering the most recent 12 consecutive months.
Buy (in fund context): An investment manager's purchase of additional shares or securities for the fund's portfolio.
Reportable AUM: Portion of a fund's assets required to be disclosed in regulatory filings, such as the SEC's 13F.
Stake: The amount or percentage of ownership an investor or fund holds in a company.
Net loss: When a company's total expenses exceed its total revenues over a specific period.
Specialty chemical products: Chemicals designed for specific uses or industries, often with unique performance characteristics.
End markets: The final industries or sectors where a company's products are sold and used.
Quarter end: The last day of a company's fiscal quarter, used for reporting financial results.
Top five holdings: The five largest investments in a fund's portfolio, usually by market value.
