Albemarle (NYSE:ALB) Shares Up 11.4% After Earnings Beat

Key Points

• Big earnings beat: Albemarle reported EPS of $2.95 versus $1.24 expected and revenue of $1.43B (vs. $1.34B), with revenue up 32.7% year-over-year, sending the stock up 11.4% to an intraday high of $221 (last $214.61).
• The company declared a quarterly dividend of $0.405 per share (annualized $1.62, ~0.8% yield), with an ex-dividend/record date of June 12 and payment on July 1.
• Analysts have raised targets but the consensus rating is a Hold with an average target of $183.83 (below the current price); CEO J. Kent Masters sold 11,783 shares and institutions own about 92.9% of the stock.

Albemarle Corporation (NYSE:ALB - Get Free Report)'s stock price shot up 11.4% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $221.00 and last traded at $214.6140. 1,121,662 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 2,547,563 shares. The stock had previously closed at $192.61.

The specialty chemicals company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $1.71. The business had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.34 billion. Albemarle had a negative net margin of 10.74% and a positive return on equity of 0.41%. The firm's quarterly revenue was up 32.7% on a year-over-year basis. During the same quarter last year, the business earned ($0.18) EPS.

Albemarle Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a dividend of $0.405 per share. The ex-dividend date is Friday, June 12th. This represents a $1.62 annualized dividend and a yield of 0.8%. Albemarle's dividend payout ratio (DPR) is presently -28.17%.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Argus raised their price objective on shares of Albemarle from $140.00 to $185.00 in a research report on Monday, February 23rd. Morgan Stanley increased their target price on Albemarle from $170.00 to $189.00 and gave the stock an "equal weight" rating in a report on Tuesday, April 28th. Citigroup raised their price objective on Albemarle from $190.00 to $210.00 and gave the company a "neutral" rating in a research note on Tuesday, April 21st. Zacks Research cut Albemarle from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 17th. Finally, UBS Group raised their price objective on Albemarle from $220.00 to $230.00 and gave the company a "buy" rating in a research note on Thursday, April 9th. Thirteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $183.83.

Insider Activity at Albemarle

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

Institutional Investors Weigh In On Albemarle

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

Albemarle Stock Up 10.4%

The company has a debt-to-equity ratio of 0.41, a current ratio of 2.23 and a quick ratio of 1.57. The company has a market cap of $25.06 billion, a PE ratio of -37.01, a price-to-earnings-growth ratio of 1.40 and a beta of 1.36. The company has a fifty day moving average price of $179.34 and a 200 day moving average price of $153.66.

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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