Cabot Corporation (NYSE:CBT) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analysts give Cabot a consensus “Hold” rating from six brokerages (1 sell, 4 hold, 1 buy) with an average 1‑year target of $73.75; some firms diverge (UBS raised its target to $81, Jefferies keeps a $85 buy).
• Cabot beat Q4 EPS at $1.53 versus $1.40 expected, but revenue fell 11.1% year‑over‑year to $849.0M and missed the $889.1M estimate.
• The company raised its quarterly dividend to $0.4725 (annualized $1.89), implying a ~2.5% yield, with ex‑dividend date May 29 and payment on June 12.

Cabot Corporation (NYSE:CBT - Get Free Report) has been assigned an average rating of "Hold" from the six brokerages that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $73.75.

Several research analysts have issued reports on CBT shares. UBS Group raised their price target on shares of Cabot from $74.00 to $81.00 and gave the stock a "neutral" rating in a report on Thursday, February 5th. Mizuho set a $75.00 price objective on shares of Cabot and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Jefferies Financial Group reissued a "buy" rating and set a $85.00 target price on shares of Cabot in a research note on Wednesday, February 4th. Finally, Zacks Research upgraded shares of Cabot from a "strong sell" rating to a "hold" rating in a report on Tuesday, January 27th.

Institutional Investors Weigh In On Cabot

Several large investors have recently added to or reduced their stakes in the business. Torren Management LLC bought a new stake in Cabot in the fourth quarter worth approximately $26,000. Smartleaf Asset Management LLC boosted its holdings in shares of Cabot by 598.0% during the 3rd quarter. Smartleaf Asset Management LLC now owns 349 shares of the specialty chemicals company's stock worth $27,000 after buying an additional 299 shares in the last quarter. Rothschild Investment LLC grew its position in shares of Cabot by 170.4% during the 4th quarter. Rothschild Investment LLC now owns 411 shares of the specialty chemicals company's stock worth $27,000 after buying an additional 259 shares during the period. Hantz Financial Services Inc. grew its position in shares of Cabot by 227.5% during the 3rd quarter. Hantz Financial Services Inc. now owns 429 shares of the specialty chemicals company's stock worth $33,000 after buying an additional 298 shares during the period. Finally, Global Retirement Partners LLC increased its stake in shares of Cabot by 1,606.9% in the 4th quarter. Global Retirement Partners LLC now owns 495 shares of the specialty chemicals company's stock valued at $33,000 after acquiring an additional 466 shares in the last quarter. Institutional investors and hedge funds own 93.18% of the company's stock.

Cabot Price Performance

Shares of CBT opened at $75.80 on Tuesday. Cabot has a 1 year low of $58.33 and a 1 year high of $83.71. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.67 and a quick ratio of 1.09. The company has a market capitalization of $3.96 billion, a price-to-earnings ratio of 13.27, a price-to-earnings-growth ratio of 10.20 and a beta of 0.78. The business has a 50-day moving average of $73.60 and a 200-day moving average of $70.18.

Cabot (NYSE:CBT - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The specialty chemicals company reported $1.53 EPS for the quarter, beating the consensus estimate of $1.40 by $0.13. The business had revenue of $849.00 million for the quarter, compared to analysts' expectations of $889.11 million. Cabot had a return on equity of 22.82% and a net margin of 8.62%.The firm's revenue was down 11.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.76 earnings per share. As a group, equities research analysts anticipate that Cabot will post 6.27 earnings per share for the current year.

Cabot Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be paid a $0.4725 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $1.89 dividend on an annualized basis and a dividend yield of 2.5%. This is a positive change from Cabot's previous quarterly dividend of $0.45. Cabot's dividend payout ratio (DPR) is presently 31.52%.

About Cabot

Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. Founded in 1882 by Godfrey Lowell Cabot, the company has grown into a diversified manufacturer with operations across North America, Europe, Asia and Latin America. Cabot serves a wide range of end markets, including automotive, industrial, energy, and consumer products, supplying essential ingredients that enhance performance, durability and functionality.

The company operates two primary segments: Reinforcement Materials and Performance Materials.

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