Albemarle (NYSE:ALB) Stock Price Down 8.7% - Here's Why

Key Points

• Albemarle shares plunged 8.7% on Friday to about $196.85 from a $215.62 close, trading as low as $195.32 on volume roughly 40% below average.
• The company missed quarterly EPS expectations, reporting ($0.53) vs. ($0.40) expected, although revenue beat at $1.43 billion, up 15.9% year‑over‑year.
• Analyst views are mixed—JPMorgan cut its target to $145 (neutral) while UBS raised its target to $230 (buy)—with the street consensus at a "Hold" and a $172.60 target.

Albemarle Corporation (NYSE:ALB - Get Free Report) shares fell 8.7% during trading on Friday . The stock traded as low as $195.32 and last traded at $196.8510. 1,605,857 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 2,679,989 shares. The stock had previously closed at $215.62.

Analysts Set New Price Targets

Several research firms have commented on ALB. JPMorgan Chase & Co. lowered their price target on Albemarle from $195.00 to $145.00 and set a "neutral" rating for the company in a report on Friday, February 13th. Citigroup upped their price target on shares of Albemarle from $180.00 to $190.00 and gave the stock a "neutral" rating in a research report on Friday, February 13th. UBS Group upped their price target on shares of Albemarle from $220.00 to $230.00 and gave the stock a "buy" rating in a research report on Thursday, April 9th. Wells Fargo & Company set a $165.00 price target on shares of Albemarle in a research report on Monday, February 16th. Finally, Scotiabank raised shares of Albemarle from a "sector perform" rating to a "sector outperform" rating and upped their price target for the stock from $85.00 to $200.00 in a research report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $172.60.

Albemarle Stock Down 8.4%

The firm's 50-day moving average price is $173.11 and its 200-day moving average price is $144.20. The company has a market cap of $23.30 billion, a price-to-earnings ratio of -34.37, a price-to-earnings-growth ratio of 1.44 and a beta of 1.43. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.23 and a quick ratio of 1.57.

Albemarle (NYSE:ALB - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The specialty chemicals company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.40) by ($0.13). Albemarle had a positive return on equity of 0.41% and a negative net margin of 10.74%.The business had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.34 billion. During the same period in the previous year, the company earned ($1.09) EPS. Albemarle's revenue was up 15.9% on a year-over-year basis. Sell-side analysts forecast that Albemarle Corporation will post -0.04 earnings per share for the current fiscal year.

Albemarle Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were given a $0.405 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $1.62 annualized dividend and a dividend yield of 0.8%. Albemarle's dividend payout ratio is presently -28.17%.

Insider Activity

In other news, CEO J Kent Masters sold 11,783 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $170.81, for a total value of $2,012,654.23. Following the completion of the sale, the chief executive officer owned 134,628 shares of the company's stock, valued at $22,995,808.68. This represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.42% of the stock is owned by insiders.

Institutional Investors Weigh In On Albemarle

Large investors have recently added to or reduced their stakes in the company. PGGM Investments grew its holdings in Albemarle by 10.8% during the 3rd quarter. PGGM Investments now owns 1,185,005 shares of the specialty chemicals company's stock valued at $96,080,000 after purchasing an additional 115,081 shares in the last quarter. Occidental Asset Management LLC acquired a new stake in Albemarle during the 3rd quarter valued at $3,313,000. CWM LLC grew its holdings in Albemarle by 14.8% during the 3rd quarter. CWM LLC now owns 165,074 shares of the specialty chemicals company's stock valued at $13,384,000 after purchasing an additional 21,257 shares in the last quarter. Nordea Investment Management AB acquired a new stake in Albemarle during the 4th quarter valued at $6,171,000. Finally, Bard Financial Services Inc. grew its holdings in Albemarle by 45.3% during the 3rd quarter. Bard Financial Services Inc. now owns 42,895 shares of the specialty chemicals company's stock valued at $3,478,000 after purchasing an additional 13,380 shares in the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

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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