Albemarle (NYSE:ALB) Shares Gap Down - Here's Why

Key Points

• Shares gapped down pre-market, opening at $166.20 after a $173.78 close and last trading around $164.38 (down about 6.2%) on ~1.25 million shares.
• Wall Street consensus is a Moderate Buy with an average price target of $137.75, which is materially below the current share price.
• Albemarle beat the latest quarterly EPS and revenue estimates (EPS -$0.19 vs -$0.92 est.), but still reported a negative net margin and pays a $0.405 quarterly dividend (1.0% yield) with a negative payout ratio.

Shares of Albemarle Corporation (NYSE:ALB - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $173.78, but opened at $166.20. Albemarle shares last traded at $164.38, with a volume of 1,253,786 shares.

Wall Street Analyst Weigh In

A number of research firms have weighed in on ALB. TD Cowen increased their price target on shares of Albemarle from $70.00 to $85.00 and gave the stock a "hold" rating in a research note on Thursday, October 9th. Citigroup lifted their target price on Albemarle from $100.00 to $150.00 and gave the company a "neutral" rating in a report on Thursday, December 18th. Wells Fargo & Company raised their price objective on Albemarle from $100.00 to $135.00 and gave the stock an "equal weight" rating in a report on Friday, December 19th. Berenberg Bank lifted their price target on shares of Albemarle from $75.00 to $135.00 and gave the company a "hold" rating in a research report on Tuesday, January 6th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $159.00 price objective on shares of Albemarle in a research note on Thursday, December 18th. Three investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $137.75.

Albemarle Stock Down 6.2%

The firm has a fifty day simple moving average of $135.40 and a 200-day simple moving average of $100.41. The company has a market capitalization of $19.19 billion, a PE ratio of -102.49, a P/E/G ratio of 6.78 and a beta of 1.41. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.51 and a current ratio of 2.27.

Albemarle (NYSE:ALB - Get Free Report) last issued its quarterly earnings results on Wednesday, November 5th. The specialty chemicals company reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.92) by $0.73. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. Albemarle had a negative net margin of 0.43% and a positive return on equity of 0.10%. The business's revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($1.55) earnings per share. Equities research analysts anticipate that Albemarle Corporation will post -0.04 EPS for the current fiscal year.

Albemarle Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Shareholders of record on Friday, December 12th were paid a dividend of $0.405 per share. The ex-dividend date was Friday, December 12th. This represents a $1.62 annualized dividend and a yield of 1.0%. Albemarle's dividend payout ratio is presently -101.89%.

Hedge Funds Weigh In On Albemarle

Large investors have recently added to or reduced their stakes in the company. Manning & Napier Advisors LLC acquired a new stake in shares of Albemarle during the third quarter worth $138,723,000. ProShare Advisors LLC raised its stake in Albemarle by 48.5% during the second quarter. ProShare Advisors LLC now owns 2,870,110 shares of the specialty chemicals company's stock worth $179,870,000 after acquiring an additional 937,538 shares during the period. AQR Capital Management LLC lifted its holdings in Albemarle by 22,047.4% in the second quarter. AQR Capital Management LLC now owns 713,812 shares of the specialty chemicals company's stock worth $44,613,000 after acquiring an additional 710,589 shares during the last quarter. Samlyn Capital LLC bought a new position in shares of Albemarle during the third quarter valued at approximately $47,088,000. Finally, FengHe Fund Management Pte. Ltd. bought a new position in Albemarle in the 2nd quarter worth about $32,903,000. 92.87% of the stock is currently owned by institutional investors.

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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