Cabot (NYSE:CBT) Sets New 12-Month Low - Should You Sell?

Key Points

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Cabot Corporation (NYSE:CBT - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday . The stock traded as low as $71.47 and last traded at $71.58, with a volume of 37075 shares. The stock had previously closed at $72.42.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. UBS Group cut their price target on shares of Cabot from $93.00 to $83.00 and set a "neutral" rating on the stock in a research report on Monday, April 7th. Wall Street Zen cut Cabot from a "buy" rating to a "hold" rating in a research note on Wednesday, May 7th.

Cabot Trading Down 0.3%

The stock has a market cap of $3.87 billion, a PE ratio of 9.31 and a beta of 0.87. The firm has a 50-day simple moving average of $75.72 and a 200-day simple moving average of $79.92. The company has a quick ratio of 1.30, a current ratio of 1.96 and a debt-to-equity ratio of 0.69.

Cabot (NYSE:CBT - Get Free Report) last posted its earnings results on Monday, May 5th. The specialty chemicals company reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.86 by $0.04. The company had revenue of $936.00 million for the quarter, compared to analysts' expectations of $1.02 billion. Cabot had a return on equity of 26.76% and a net margin of 11.08%. Cabot's quarterly revenue was down 8.1% on a year-over-year basis. During the same period last year, the firm earned $1.78 earnings per share. Equities analysts forecast that Cabot Corporation will post 7.57 earnings per share for the current year.

Cabot Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Friday, August 29th will be given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 2.5%. Cabot's dividend payout ratio (DPR) is currently 23.29%.

Hedge Funds Weigh In On Cabot

Institutional investors have recently modified their holdings of the stock. Peregrine Capital Management LLC raised its holdings in shares of Cabot by 14.3% in the second quarter. Peregrine Capital Management LLC now owns 63,669 shares of the specialty chemicals company's stock worth $4,775,000 after buying an additional 7,965 shares during the last quarter. Teacher Retirement System of Texas increased its holdings in Cabot by 3.5% in the second quarter. Teacher Retirement System of Texas now owns 8,238 shares of the specialty chemicals company's stock valued at $618,000 after buying an additional 282 shares in the last quarter. Ashton Thomas Private Wealth LLC purchased a new position in Cabot in the second quarter valued at $1,108,000. Leeward Investments LLC MA increased its holdings in Cabot by 12.1% in the second quarter. Leeward Investments LLC MA now owns 203,616 shares of the specialty chemicals company's stock valued at $15,271,000 after buying an additional 21,997 shares in the last quarter. Finally, State of New Jersey Common Pension Fund D boosted its position in Cabot by 11.6% during the second quarter. State of New Jersey Common Pension Fund D now owns 25,435 shares of the specialty chemicals company's stock worth $1,908,000 after acquiring an additional 2,647 shares during the last quarter. 93.18% of the stock is owned by hedge funds and other institutional investors.

Cabot Company Profile

Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions.