Albemarle (NYSE:ALB) Shares Gap Down - Should You Sell?

Key Points

• Albemarle Corporation shares gapped down from a closing price of $80.76 to $78.24 before trading, with the stock currently priced at $79.21.
• Multiple research firms have downgraded their price targets for Albemarle, with Citigroup reducing it from $85.00 to $64.00, reflecting a consensus rating of "Hold".
• The company's latest earnings report showed an EPS of $0.11, significantly exceeding analysts' expectations, but revenue fell 7.0% year-over-year, highlighting ongoing challenges.

Albemarle Corporation (NYSE:ALB - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $80.76, but opened at $78.24. Albemarle shares last traded at $79.21, with a volume of 1,052,822 shares.

Wall Street Analyst Weigh In

Several research firms have recently commented on ALB. Deutsche Bank Aktiengesellschaft set a $74.00 price target on Albemarle and gave the stock a "hold" rating in a report on Monday, August 4th. KeyCorp reiterated a "sector weight" rating on shares of Albemarle in a report on Wednesday, July 30th. Citigroup cut their price target on shares of Albemarle from $85.00 to $64.00 and set a "neutral" rating for the company in a report on Tuesday, April 15th. Mizuho set a $76.00 price target on shares of Albemarle in a research report on Tuesday, July 15th. Finally, TD Securities lowered their price objective on Albemarle from $115.00 to $65.00 and set a "hold" rating for the company in a research report on Thursday, May 1st. Six investment analysts have rated the stock with a sell rating, nine have given a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $88.06.

Albemarle Stock Down 1.6%

The company has a debt-to-equity ratio of 0.38, a current ratio of 2.31 and a quick ratio of 1.47. The business has a 50 day simple moving average of $67.76 and a 200 day simple moving average of $67.99. The company has a market capitalization of $9.35 billion, a price-to-earnings ratio of -8.53 and a beta of 1.63.

Albemarle (NYSE:ALB - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The specialty chemicals company reported $0.11 EPS for the quarter, topping analysts' consensus estimates of ($0.83) by $0.94. Albemarle had a negative return on equity of 1.87% and a negative net margin of 18.61%. The company had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same period in the prior year, the firm earned $0.04 earnings per share. The firm's revenue was down 7.0% compared to the same quarter last year. As a group, equities analysts predict that Albemarle Corporation will post -0.04 earnings per share for the current fiscal year.

Albemarle Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be paid a $0.405 dividend. This represents a $1.62 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, September 12th. Albemarle's dividend payout ratio (DPR) is presently -17.38%.

Institutional Trading of Albemarle

Hedge funds have recently modified their holdings of the stock. Hantz Financial Services Inc. raised its stake in shares of Albemarle by 10,050.0% in the second quarter. Hantz Financial Services Inc. now owns 406 shares of the specialty chemicals company's stock valued at $25,000 after acquiring an additional 402 shares in the last quarter. Orion Capital Management LLC purchased a new stake in Albemarle during the 4th quarter worth about $35,000. SJS Investment Consulting Inc. acquired a new position in shares of Albemarle during the 1st quarter worth about $32,000. National Pension Service increased its holdings in shares of Albemarle by 74.5% in the 1st quarter. National Pension Service now owns 452 shares of the specialty chemicals company's stock valued at $33,000 after acquiring an additional 193 shares during the last quarter. Finally, Costello Asset Management INC acquired a new stake in shares of Albemarle during the 1st quarter worth about $36,000. 92.87% of the stock is currently owned by institutional investors and hedge funds.

Albemarle Company Profile

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Energy Storage, Specialties and Ketjen. The Energy Storage segment offers lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services.

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