Albemarle Corporation (NYSE:ALB) Given Consensus Recommendation of "Hold" by Analysts

Key Points

• Albemarle has a consensus “Hold” rating from 27 analysts, with 13 buys, 12 holds, and 2 sells. The average 1-year target price is about $189.04.
• The company beat Q1 earnings expectations by a wide margin, reporting EPS of $2.95 versus $1.24 expected, and revenue of $1.43 billion also topped estimates. Results were helped by stronger lithium pricing and volumes.
• Several analysts raised their price targets on Albemarle recently, including UBS, HSBC, Jefferies, and Citigroup, signaling improving sentiment despite some neutral ratings. The stock also traded higher and closed near its recent high range.

Shares of Albemarle Corporation (NYSE:ALB - Get Free Report) have been assigned a consensus recommendation of "Hold" from the twenty-seven brokerages that are currently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and thirteen have issued a buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $189.0417.

A number of research firms have recently weighed in on ALB. Robert W. Baird upped their price target on shares of Albemarle from $210.00 to $236.00 in a research note on Thursday. UBS Group upped their price target on shares of Albemarle from $230.00 to $264.00 and gave the stock a "buy" rating in a research note on Friday. HSBC increased their target price on shares of Albemarle from $200.00 to $220.00 and gave the stock a "buy" rating in a research report on Monday, April 27th. Jefferies Financial Group increased their target price on shares of Albemarle from $210.00 to $230.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Finally, Berenberg Bank set a $153.00 target price on shares of Albemarle in a research report on Monday, February 23rd.

Albemarle News Roundup

Here are the key news stories impacting Albemarle this week:

• Positive Sentiment: Citigroup raised its price target on Albemarle to $225 from $210, suggesting further upside potential even though the rating remained neutral. Benzinga report on Citigroup target hike
• Positive Sentiment: Multiple analysts increased price targets this week, including Wells Fargo, Robert W. Baird, and Mizuho, signaling improving sentiment toward Albemarle’s outlook. Tickerreport.com
• Positive Sentiment: Albemarle beat Q1 estimates with EPS of $2.95 versus $1.24 expected, while revenue also topped forecasts, driven by stronger lithium pricing and volumes. Zacks value-stock article
• Positive Sentiment: Coverage around the earnings call highlighted strong momentum, reinforcing the view that Albemarle’s operating trends improved meaningfully in the quarter. TipRanks earnings call summary
• Neutral Sentiment: One article compared Albemarle with LyondellBasell from a value-investing perspective, but it was more of a relative valuation discussion than a direct catalyst. Zacks comparison article

Insider Buying and Selling

In other Albemarle news, CEO J Kent Masters sold 11,783 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $170.81, for a total transaction of $2,012,654.23. Following the transaction, the chief executive officer directly owned 134,628 shares of the company's stock, valued at $22,995,808.68. This represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.42% of the stock is owned by insiders.

Hedge Funds Weigh In On Albemarle

Several hedge funds have recently bought and sold shares of the business. PNC Financial Services Group Inc. increased its position in Albemarle by 4.4% during the first quarter. PNC Financial Services Group Inc. now owns 41,689 shares of the specialty chemicals company's stock worth $7,484,000 after buying an additional 1,776 shares during the last quarter. Baader Bank Aktiengesellschaft increased its position in Albemarle by 45.5% during the first quarter. Baader Bank Aktiengesellschaft now owns 2,281 shares of the specialty chemicals company's stock worth $410,000 after buying an additional 713 shares during the last quarter. DJE Kapital AG acquired a new position in Albemarle during the first quarter worth $6,035,000. Parallel Advisors LLC boosted its holdings in Albemarle by 4.9% during the first quarter. Parallel Advisors LLC now owns 2,588 shares of the specialty chemicals company's stock valued at $465,000 after acquiring an additional 120 shares during the period. Finally, KBC Group NV boosted its holdings in Albemarle by 6.6% during the first quarter. KBC Group NV now owns 3,710 shares of the specialty chemicals company's stock valued at $666,000 after acquiring an additional 230 shares during the period. 92.87% of the stock is owned by institutional investors and hedge funds.

Albemarle Trading Up 2.7%

NYSE ALB opened at $203.72 on Friday. Albemarle has a 1-year low of $53.70 and a 1-year high of $221.00. The company has a current ratio of 2.07, a quick ratio of 1.57 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $24.02 billion, a PE ratio of -59.74, a price-to-earnings-growth ratio of 1.42 and a beta of 1.36. The firm's fifty day simple moving average is $179.56 and its 200-day simple moving average is $154.41.

Albemarle (NYSE:ALB - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The specialty chemicals company reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $1.71. Albemarle had a negative net margin of 5.00% and a positive return on equity of 5.22%. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same period in the prior year, the business posted ($0.18) earnings per share. Albemarle's revenue for the quarter was up 32.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Albemarle will post 8.72 earnings per share for the current fiscal year.

Albemarle Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be given a dividend of $0.405 per share. This represents a $1.62 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Friday, June 12th. Albemarle's dividend payout ratio is presently -47.51%.

Albemarle Company Profile

Albemarle Corporation is a leading global specialty chemicals company primarily engaged in the production and distribution of lithium, bromine, and catalysts. Its lithium segment supplies key components used in rechargeable batteries for electric vehicles, portable electronics, and grid storage systems. The company's bromine specialty products serve a wide range of industries, including oil and gas drilling fluids, fire safety solutions, and water treatment. In its catalysts division, Albemarle provides products for petroleum refining, chemical processing and emissions control.

Founded in 1994 as a spin-off from Ethyl Corporation, Albemarle has grown through strategic acquisitions and capacity expansions to become one of the world's foremost chemical producers.

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