Cabot (NYSE:CBT) Stock Dropped to "Hold" by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cabot from “buy” to “hold.” Analysts overall also have a consensus “hold” rating, with an average price target of $85.60.
• Cabot beat quarterly expectations, reporting adjusted earnings of $1.61 per share and revenue of $1.01 billion; revenue rose 12.2% year over year.
• Cabot shares were reported down 2.5%, opening at $71.12, below the consensus price target.

Cabot (NYSE:CBT - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

CBT has been the subject of a number of other research reports. Truist Financial decreased their target price on shares of Cabot from $100.00 to $95.00 and set a "buy" rating for the company in a research note on Wednesday. UBS Group dropped their price target on shares of Cabot from $86.00 to $80.00 and set a "neutral" rating on the stock in a research note on Wednesday. JPMorgan Chase & Co. raised their price objective on shares of Cabot from $70.00 to $78.00 and gave the company an "underweight" rating in a research note on Friday, August 7th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Cabot in a report on Friday, August 21st. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $85.60.

Cabot Stock Down 2.5%

Shares of NYSE CBT opened at $71.12 on Friday. The company has a quick ratio of 0.97, a current ratio of 1.47 and a debt-to-equity ratio of 0.48. The company has a market cap of $3.67 billion, a P/E ratio of 17.74, a P/E/G ratio of 8.91 and a beta of 0.83. Cabot has a 52 week low of $58.33 and a 52 week high of $94.53. The business has a 50-day simple moving average of $76.87 and a two-hundred day simple moving average of $79.54.

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

Insider Transactions at Cabot

In related news, CEO Sean Keohane sold 134,895 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 404,134 shares of the company's stock, valued at approximately $34,351,390. This trade represents a 25.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 3.08% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in Cabot in the 2nd quarter worth approximately $633,302,000. Bank of America Corp DE bought a new position in Cabot in the 2nd quarter valued at $150,772,000. Bank of New York Mellon Corp bought a new position in shares of Cabot in the second quarter worth about $57,445,000. William Blair Investment Management LLC acquired a new position in Cabot during the 2nd quarter worth $16,809,000. Finally, State Street Corp raised its holdings in Cabot by 6.8% during the 2nd quarter. State Street Corp now owns 2,165,434 shares of the specialty chemicals company's stock worth $196,665,000 after purchasing an additional 138,098 shares during the last quarter. 93.18% of the stock is owned by institutional investors.

About Cabot

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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