JPMorgan Chase & Co. Has Lowered Expectations for Cabot (NYSE:CBT) Stock Price

Key Points

• JPMorgan cut its Cabot price target from $78 to $68 and maintained an “underweight” rating, implying 5.84% downside from the prior close.
• Analyst views are mixed, but Cabot has a consensus “hold” rating and an average price target of $83.60; shares rose 0.5% to $72.22 on Tuesday.
• Cabot beat quarterly earnings expectations, reporting EPS of $1.61 versus $1.55 expected, while revenue rose 12.2% year over year to $1.01 billion.

Cabot (NYSE:CBT - Get Free Report) had its price target dropped by equities researchers at JPMorgan Chase & Co. from $78.00 to $68.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has an "underweight" rating on the specialty chemicals company's stock. JPMorgan Chase & Co.'s price target would suggest a potential downside of 5.84% from the company's previous close.

A number of other equities research analysts have also recently issued reports on CBT. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cabot in a report on Friday, August 21st. Zacks Research cut Cabot from a "hold" rating to a "strong sell" rating in a report on Thursday, November 5th. Wall Street Zen cut Cabot from a "buy" rating to a "hold" rating in a research note on Saturday. Truist Financial cut their price target on Cabot from $100.00 to $95.00 and set a "buy" rating for the company in a report on Wednesday, November 4th. Finally, UBS Group reduced their price objective on shares of Cabot from $86.00 to $80.00 and set a "neutral" rating for the company in a research report on Wednesday, November 4th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Cabot presently has a consensus rating of "Hold" and an average target price of $83.60.

Cabot Stock Up 0.5%

NYSE CBT traded up $0.37 during trading hours on Tuesday, hitting $72.22. 89,406 shares of the company traded hands, compared to its average volume of 453,914. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.97 and a current ratio of 2.16. The business's 50-day moving average is $76.64 and its 200-day moving average is $79.54. The stock has a market capitalization of $3.73 billion, a price-to-earnings ratio of 18.01, a P/E/G ratio of 9.70 and a beta of 0.83. Cabot has a twelve month low of $58.33 and a twelve month high of $94.53.

Cabot (NYSE:CBT - Get Free Report) last announced its quarterly earnings data on Monday, November 2nd. The specialty chemicals company reported $1.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. Cabot had a return on equity of 19.64% and a net margin of 5.69%. The company had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $927.29 million. During the same quarter in the prior year, the business posted $1.70 EPS. The business's revenue was up 12.2% compared to the same quarter last year. Sell-side analysts anticipate that Cabot will post 6.55 earnings per share for the current year.

Insider Transactions at Cabot

In other news, CEO Sean Keohane sold 134,895 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $85.00, for a total transaction of $11,466,075.00. Following the completion of the sale, the chief executive officer owned 404,134 shares in the company, valued at $34,351,390. The trade was a 25.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cabot

A number of hedge funds and other institutional investors have recently modified their holdings of CBT. First Eagle Investment Management LLC lifted its stake in shares of Cabot by 5.7% in the 3rd quarter. First Eagle Investment Management LLC now owns 220,250 shares of the specialty chemicals company's stock valued at $16,939,000 after acquiring an additional 11,800 shares during the last quarter. Royce & Associates LP acquired a new position in shares of Cabot in the 3rd quarter worth approximately $225,000. William Blair Investment Management LLC boosted its position in Cabot by 19.4% during the third quarter. William Blair Investment Management LLC now owns 220,897 shares of the specialty chemicals company's stock valued at $16,989,000 after acquiring an additional 35,820 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in Cabot during the third quarter worth approximately $229,000. Finally, Ritholtz Wealth Management bought a new stake in shares of Cabot in the 3rd quarter valued at $307,000. Institutional investors and hedge funds own 93.18% of the company's stock.

Cabot Company Profile

Cabot Corporation is a specialty chemicals and performance materials company that develops and manufactures materials used in products across transportation, energy, infrastructure, electronics and consumer markets. Its offerings include reinforcing carbon blacks for tires and other rubber products, specialty carbons and battery materials, fumed silica and other specialty compounds. Founded in 1882, Cabot has expanded from its early carbon black business into a broader portfolio of performance materials.

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