Cabot (NYSE:CBT) Sets New 12-Month High on Strong Earnings

Key Points

• Cabot shares hit a new 52-week high after the company reported adjusted EPS of $1.61 (vs. $1.47 consensus) and revenue of $904M, pushing the stock up as high as $85.27 (last $82.70).
• The board raised the quarterly dividend to $0.4725 (annualized $1.89), a ~5% increase that yields about 2.3% with an ex‑dividend date of May 29.
• Management set FY‑2026 EPS guidance of $6.00–$6.50 (roughly in line with street expectations), but revenue was down ~3.4% year‑over‑year and planned asset optimizations, including possible plant closures, add near‑term downside risk.

Cabot Corporation (NYSE:CBT - Get Free Report)'s share price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $85.27 and last traded at $82.70, with a volume of 40741 shares. The stock had previously closed at $78.93.

The specialty chemicals company reported $1.61 earnings per share for the quarter, topping analysts' consensus estimates of $1.47 by $0.14. The firm had revenue of $904.00 million during the quarter, compared to analysts' expectations of $900.31 million. Cabot had a return on equity of 22.82% and a net margin of 8.62%.The business's quarterly revenue was down 3.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.90 EPS. Cabot has set its FY 2026 guidance at 6.000-6.50 EPS.

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 given a $0.4725 dividend. This represents a $1.89 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, May 29th. This is a positive change from Cabot's previous quarterly dividend of $0.45. Cabot's payout ratio is 31.52%.

Trending Headlines about Cabot

Here are the key news stories impacting Cabot this week:

• Positive Sentiment: Quarterly results beat expectations — adjusted EPS of $1.61 topped the consensus $1.47 and revenue of $904M was roughly in line, showing the company outperformed street estimates this quarter. Cabot (CBT) Surpasses Q2 Earnings Estimates
• Positive Sentiment: Battery materials and segment performance showing strength — management cited battery materials momentum and meaningful EBITDA contribution; Reinforcement Materials EBIT was $93M and Performance Chemicals EBIT $59M, supporting growth narrative. Cabot Corporation Reports Second Quarter Fiscal Year 2026 Results
• Positive Sentiment: Board raised the quarterly dividend by 5% (new quarterly $0.4725; annualized $1.89), boosting yield and returning cash to shareholders. Cabot Corporation Board Increases Dividend
• Neutral Sentiment: FY‑2026 EPS guidance set to $6.00–$6.50 (street consensus ~6.24) — range essentially encompasses the consensus, so guidance is not a clear positive or negative surprise for investors.
• Neutral Sentiment: Company hosted an earnings call and posted slides/transcript for investors to assess details and modeling assumptions. Listen to Conference Call
• Negative Sentiment: Revenue and EPS are down year‑over‑year (revenue down ~3.4%; GAAP EPS declined vs prior year), highlighting near‑term demand softness in parts of the business. Cabot Corporation Reports Second Quarter Fiscal Year 2026 Results
• Negative Sentiment: Company announced plans to pursue asset optimization, including potential closures of manufacturing operations in South America and Europe — possible near‑term restructuring costs and local consultation risks. Cabot Corporation Reports Second Quarter Fiscal Year 2026 Results

Analysts Set New Price Targets

A number of brokerages have commented on CBT. Zacks Research raised Cabot from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 27th. Jefferies Financial Group reaffirmed a "buy" rating and set a $85.00 price target on shares of Cabot in a research report on Wednesday, February 4th. UBS Group lifted their price target on Cabot from $74.00 to $81.00 and gave the stock a "neutral" rating in a research report on Thursday, February 5th. Finally, Mizuho lifted their price target on Cabot from $75.00 to $80.00 and gave the stock a "neutral" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $75.00.

Institutional Trading of Cabot

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fuller & Thaler Asset Management Inc. raised its stake in shares of Cabot by 5.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,343,322 shares of the specialty chemicals company's stock valued at $155,315,000 after buying an additional 124,613 shares during the last quarter. State Street Corp raised its stake in shares of Cabot by 1.0% during the 4th quarter. State Street Corp now owns 2,025,589 shares of the specialty chemicals company's stock valued at $134,256,000 after buying an additional 20,021 shares during the last quarter. American Century Companies Inc. raised its stake in shares of Cabot by 8.4% during the 3rd quarter. American Century Companies Inc. now owns 1,805,393 shares of the specialty chemicals company's stock valued at $137,300,000 after buying an additional 140,665 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Cabot by 3.9% during the 3rd quarter. Bank of America Corp DE now owns 1,683,520 shares of the specialty chemicals company's stock valued at $128,032,000 after buying an additional 63,080 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Cabot by 6.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,663,283 shares of the specialty chemicals company's stock valued at $110,243,000 after buying an additional 106,521 shares during the last quarter. Institutional investors and hedge funds own 93.18% of the company's stock.

Cabot Price Performance

The stock has a 50 day simple moving average of $73.67 and a two-hundred day simple moving average of $70.26. The firm has a market cap of $4.33 billion, a PE ratio of 14.56, a price-to-earnings-growth ratio of 10.00 and a beta of 0.78. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.09 and a current ratio of 1.67.

Cabot Company Profile

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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