Cabot (NYSE:CBT) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Cabot from “hold” to “strong sell.” Analyst views remain mixed overall: MarketBeat reports an average “hold” rating and a consensus price target of $85.60.
• Cabot shares opened at $71.12 and were down 2.5%; the stock’s reported 52-week range is $58.33–$94.53.
• Quarterly results beat estimates: Cabot reported EPS of $1.61 versus $1.55 expected and revenue of $1.01 billion versus $927.29 million expected; revenue rose 12.2% year over year.

Cabot (NYSE:CBT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday, Zacks reports.

Several other equities research analysts have also commented on CBT. Wall Street Zen lowered shares of Cabot from a "buy" rating to a "hold" rating in a report on Saturday. JPMorgan Chase & Co. raised their price objective on Cabot from $70.00 to $78.00 and gave the company an "underweight" rating in a report on Friday, August 7th. UBS Group dropped their price objective on Cabot from $86.00 to $80.00 and set a "neutral" rating on the stock in a report on Wednesday. Truist Financial decreased their price objective on Cabot from $100.00 to $95.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cabot in a research report on Friday, August 21st. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $85.60.

Cabot Stock Down 2.5%

NYSE:CBT opened at $71.12 on Thursday. Cabot has a 1-year low of $58.33 and a 1-year high of $94.53. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.47 and a quick ratio of 0.97. The firm has a market cap of $3.67 billion, a PE ratio of 17.74, a price-to-earnings-growth ratio of 8.91 and a beta of 0.83. The company has a 50-day moving average of $76.87 and a 200 day moving average of $79.54.

Cabot (NYSE:CBT - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The specialty chemicals company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.06. Cabot had a net margin of 5.69% and a return on equity of 19.79%. The business had revenue of $1.01 billion during the quarter, compared to the consensus estimate of $927.29 million. During the same quarter in the prior year, the company posted $1.70 earnings per share. The company's quarterly revenue was up 12.2% compared to the same quarter last year. As a group, research analysts anticipate that Cabot will post 6.55 EPS for the current fiscal year.

Insider Activity at Cabot

In related news, CEO Sean Keohane sold 134,895 shares of the business's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $85.00, for a total value of $11,466,075.00. Following the completion of the sale, the chief executive officer directly owned 404,134 shares in the company, valued at approximately $34,351,390. The trade was a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cabot

Hedge funds and other institutional investors have recently modified their holdings of the company. Root Financial Partners LLC bought a new position in Cabot in the 3rd quarter valued at about $27,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Cabot in the 2nd quarter worth about $33,000. Global Retirement Partners LLC purchased a new position in Cabot in the second quarter worth $88,000. Rockefeller Capital Management L.P. increased its holdings in shares of Cabot by 115.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 1,152 shares of the specialty chemicals company's stock valued at $76,000 after purchasing an additional 617 shares in the last quarter. Finally, Allworth Financial LP acquired a new position in Cabot during the second quarter worth about $145,000. Institutional investors and hedge funds own 93.18% of the company's stock.

Cabot Company Profile

Cabot Corporation NYSE: CBT is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company develops and manufactures materials used to improve the performance, durability, conductivity, color and purity of products across a range of industries.

Cabot's products include carbon black used in tires, rubber goods, coatings, plastics and printing inks; specialty carbons and conductive materials for batteries and other applications; and specialty compounds and masterbatches.

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