Cabot (NYSE:CBT) Trading 8.2% Higher on Strong Earnings

Cabot Corporation (NYSE:CBT) traded up 8.2% on Wednesday following a stronger than expected earnings report. The company traded as high as $77.50 and last traded at $77.1020. 40,603 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 450,072 shares. The stock had previously closed at $71.29.

The specialty chemicals company reported $1.53 EPS for the quarter, topping analysts’ consensus estimates of $1.40 by $0.13. The company had revenue of $849.00 million for the quarter, compared to analysts’ expectations of $889.11 million. Cabot had a return on equity of 22.81% and a net margin of 8.62%.Cabot’s revenue for the quarter was down 11.1% compared to the same quarter last year. During the same period last year, the firm earned $1.76 EPS. Cabot has set its FY 2026 guidance at 6.000-6.500 EPS.

Cabot Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, February 27th. Cabot’s dividend payout ratio is presently 31.52%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. UBS Group upped their target price on shares of Cabot from $74.00 to $81.00 and gave the stock a “neutral” rating in a report on Thursday. Jefferies Financial Group reaffirmed a “buy” rating and issued a $85.00 price objective on shares of Cabot in a research note on Wednesday. JPMorgan Chase & Co. cut their target price on Cabot from $75.00 to $54.00 and set an “underweight” rating for the company in a research report on Friday, November 28th. Mizuho set a $75.00 price target on Cabot and gave the stock a “neutral” rating in a report on Wednesday. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Cabot in a research note on Monday, December 29th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $73.75.

Institutional Trading of Cabot

A number of large investors have recently added to or reduced their stakes in CBT. Norges Bank purchased a new position in shares of Cabot in the second quarter valued at $51,710,000. AQR Capital Management LLC raised its stake in Cabot by 123.0% during the second quarter. AQR Capital Management LLC now owns 867,946 shares of the specialty chemicals company’s stock valued at $65,096,000 after purchasing an additional 478,702 shares in the last quarter. UBS Group AG lifted its position in Cabot by 186.7% during the third quarter. UBS Group AG now owns 593,510 shares of the specialty chemicals company’s stock valued at $45,136,000 after purchasing an additional 386,514 shares during the last quarter. American Century Companies Inc. grew its stake in shares of Cabot by 11.1% in the 2nd quarter. American Century Companies Inc. now owns 1,664,728 shares of the specialty chemicals company’s stock worth $124,855,000 after buying an additional 166,460 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Cabot by 32.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 442,646 shares of the specialty chemicals company’s stock worth $36,802,000 after buying an additional 108,645 shares during the last quarter. Institutional investors own 93.18% of the company’s stock.

Cabot Stock Performance

The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.08 and a current ratio of 1.67. The business’s fifty day moving average price is $69.04 and its two-hundred day moving average price is $71.69. The stock has a market capitalization of $4.04 billion, a P/E ratio of 13.38, a P/E/G ratio of 4.12 and a beta of 0.88.

Cabot Company Profile

Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. Founded in 1882 by Godfrey Lowell Cabot, the company has grown into a diversified manufacturer with operations across North America, Europe, Asia and Latin America. Cabot serves a wide range of end markets, including automotive, industrial, energy, and consumer products, supplying essential ingredients that enhance performance, durability and functionality.

The company operates two primary segments: Reinforcement Materials and Performance Materials.