Albemarle (NYSE:ALB) Shares Gap Up - Still a Buy?

Key Points

• Albemarle shares gapped up before trading, opening at $136 versus a prior close of $129.72 and last trading around $134.50. The move came with moderate volume and keeps attention on whether the stock can sustain the bounce.
• Analyst sentiment remains broadly positive, with an average rating of “Moderate Buy” and a consensus price target of $201.17. Recent updates included target cuts from Jefferies but upgrades from Vertical Research and continued bullish calls from RBC and Argus.
• Recent fundamentals were strong, as Albemarle posted quarterly EPS of $2.95, well above the $1.24 estimate, on revenue of $1.43 billion that also beat expectations. The company also announced a quarterly dividend of $0.405 per share, yielding about 1.2% annualized.

Shares of Albemarle Corporation (NYSE:ALB - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $129.72, but opened at $136.00. Albemarle shares last traded at $134.4950, with a volume of 426,180 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Jefferies Financial Group decreased their target price on Albemarle from $244.00 to $211.00 and set a "buy" rating for the company in a research report on Tuesday. Vertical Research upgraded shares of Albemarle from a "hold" rating to a "buy" rating and set a $224.00 price target for the company in a research report on Tuesday, May 26th. Weiss Ratings upgraded shares of Albemarle from a "sell (d-)" rating to a "sell (d+)" rating in a report on Thursday, May 7th. Royal Bank Of Canada lifted their price objective on shares of Albemarle from $253.00 to $257.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Finally, Argus boosted their target price on shares of Albemarle from $185.00 to $230.00 and gave the company a "buy" rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, ten have issued 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 an average target price of $201.17.

Albemarle Price Performance

The company has a current ratio of 2.07, a quick ratio of 1.21 and a debt-to-equity ratio of 0.23. The stock has a market cap of $15.75 billion, a PE ratio of -39.38, a PEG ratio of 0.64 and a beta of 1.31. The business has a 50-day moving average price of $174.92 and a 200 day moving average price of $169.40.

Albemarle (NYSE:ALB - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The specialty chemicals company reported $2.95 earnings per share for the quarter, topping the consensus estimate of $1.24 by $1.71. The company had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.34 billion. Albemarle had a positive return on equity of 5.22% and a negative net margin of 5.00%.The firm's revenue for the quarter was up 32.7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.18) EPS. As a group, research analysts forecast that Albemarle Corporation will post 12.98 earnings per share for the current fiscal year.

Albemarle Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th will be given a $0.405 dividend. The ex-dividend date of this dividend is Friday, June 12th. This represents a $1.62 annualized dividend and a dividend yield of 1.2%. Albemarle's payout ratio is -47.51%.

Insider Activity at Albemarle

In related news, CEO J Kent Masters sold 16,393 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $183.72, for a total transaction of $3,011,721.96. Following the sale, the chief executive officer directly owned 87,519 shares in the company, valued at approximately $16,078,990.68. This represents a 15.78% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.42% of the company's stock.

Institutional Investors Weigh In On Albemarle

Institutional investors have recently made changes to their positions in the stock. Evexia Wealth LLC lifted its position in shares of Albemarle by 2.3% during the first quarter. Evexia Wealth LLC now owns 2,088 shares of the specialty chemicals company's stock valued at $387,000 after buying an additional 47 shares during the last quarter. Parallel Advisors LLC increased its position in shares of Albemarle by 2.5% during the fourth quarter. Parallel Advisors LLC now owns 2,468 shares of the specialty chemicals company's stock worth $349,000 after purchasing an additional 60 shares in the last quarter. Eaton Financial Holdings Company LLC lifted its holdings in shares of Albemarle by 1.2% during the 4th quarter. Eaton Financial Holdings Company LLC now owns 5,769 shares of the specialty chemicals company's stock valued at $816,000 after purchasing an additional 66 shares during the last quarter. Sigma Planning Corp grew its stake in Albemarle by 2.3% during the 1st quarter. Sigma Planning Corp now owns 2,952 shares of the specialty chemicals company's stock worth $530,000 after buying an additional 66 shares during the last quarter. Finally, Signature Estate & Investment Advisors LLC grew its stake in Albemarle by 1.9% during the 4th quarter. Signature Estate & Investment Advisors LLC now owns 3,592 shares of the specialty chemicals company's stock worth $508,000 after buying an additional 67 shares during the last quarter. Hedge funds and other institutional investors own 92.87% of the company's stock.

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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