Albemarle (NYSE:ALB) Announces Earnings Results

Key Points

• Albemarle beat quarterly expectations, reporting earnings of $3.75 per share versus the $3.20 consensus estimate and revenue of $1.74 billion compared with forecasts of $1.61 billion.
• Shares fell 1.8% to $118.61 following the results, while the company maintained its quarterly dividend at $0.41 per share, equal to a 1.4% annualized yield.
• Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $199.22; institutional investors own 92.87% of the stock.

Albemarle (NYSE:ALB - Get Free Report) posted its earnings results on Wednesday. The specialty chemicals company reported $3.75 earnings per share for the quarter, beating the consensus estimate of $3.20 by $0.55, FiscalAI reports. Albemarle had a positive return on equity of 5.22% and a negative net margin of 5.00%.The company had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.61 billion.

Albemarle Trading Down 1.8%

Shares of NYSE:ALB traded down $2.21 during midday trading on Wednesday, reaching $118.61. The company's stock had a trading volume of 2,685,395 shares, compared to its average volume of 2,483,298. The firm has a market cap of $13.99 billion, a price-to-earnings ratio of -34.78 and a beta of 1.33. The business has a 50 day moving average price of $140.72 and a 200 day moving average price of $164.95. Albemarle has a 1 year low of $66.89 and a 1 year high of $221.00. The company has a quick ratio of 1.21, a current ratio of 2.07 and a debt-to-equity ratio of 0.23.

Albemarle Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be given a $0.41 dividend. This is an increase from Albemarle's previous quarterly dividend of $0.41. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, September 11th. Albemarle's dividend payout ratio (DPR) is presently -47.51%.

Insider Transactions at Albemarle

In other Albemarle news, CEO J Kent Masters sold 16,393 shares of Albemarle stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $183.72, for a total value of $3,011,721.96. Following the completion of the sale, the chief executive officer owned 87,519 shares in the company, valued at $16,078,990.68. The trade was a 15.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.42% of the company's stock.

Institutional Investors Weigh In On Albemarle

Several hedge funds have recently modified their holdings of the stock. Quarry LP boosted its holdings in shares of Albemarle by 2,927.0% in the 3rd quarter. Quarry LP now owns 2,694 shares of the specialty chemicals company's stock valued at $218,000 after purchasing an additional 2,605 shares during the last quarter. Tiemann Investment Advisors LLC acquired a new stake in shares of Albemarle during the 4th quarter worth $218,000. J.W. Cole Advisors Inc. purchased a new position in shares of Albemarle in the 4th quarter worth $211,000. Sepio Capital LP purchased a new stake in Albemarle during the fourth quarter valued at about $211,000. Finally, Cim Investment Management Inc. purchased a new stake in Albemarle during the fourth quarter valued at about $204,000. 92.87% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Wall Street Zen lowered shares of Albemarle from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Wells Fargo & Company raised their target price on shares of Albemarle from $165.00 to $200.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. Mizuho dropped their target price on shares of Albemarle from $205.00 to $185.00 and set a "neutral" rating for the company in a report on Wednesday, July 1st. HSBC lifted 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. Finally, Vertical Research upgraded shares of Albemarle from a "hold" rating to a "buy" rating and set a $224.00 price target on the stock in a research report on Tuesday, May 26th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $199.22.

About Albemarle

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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