Cabot (NYSE:CBT) Shares Gap Down - What's Next?

Key Points

• Cabot shares plunged, opening at $81.18 versus a prior close of $89.58 and last trading near $80.03. The stock is below its 50-day moving average of $88.03 but above its 200-day average of $79.56.
• Analyst sentiment is mixed, with two Buy, four Hold and one Sell rating; the consensus is Hold with an average price target of $85.80. Price targets range from $70 at JPMorgan to $98 at Truist.
• Cabot slightly exceeded quarterly expectations, reporting $1.67 in EPS and $982 million in revenue, with revenue up 6.4% year over year. The company also maintained its quarterly dividend at $0.4725 per share, equivalent to a 2.4% annualized yield.

Cabot Corporation (NYSE:CBT - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $89.58, but opened at $81.18. Cabot shares last traded at $80.0330, with a volume of 84,941 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Wall Street Zen lowered Cabot from a "buy" rating to a "hold" rating in a research report on Saturday. Weiss Ratings reiterated a "hold (c)" rating on shares of Cabot in a research report on Tuesday, May 26th. Truist Financial initiated coverage on shares of Cabot in a research report on Monday, June 8th. They set a "buy" rating and a $98.00 price objective on the stock. Mizuho lifted their price objective on shares of Cabot from $80.00 to $90.00 and gave the company a "neutral" rating in a research note on Thursday, June 25th. Finally, JPMorgan Chase & Co. upped their target price on shares of Cabot from $68.00 to $70.00 and gave the company an "underweight" rating in a report on Wednesday, May 13th. Two analysts have 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 MarketBeat, Cabot currently has an average rating of "Hold" and an average price target of $85.80.

Cabot Price Performance

The company has a debt-to-equity ratio of 0.51, a current ratio of 1.45 and a quick ratio of 0.96. The company has a 50 day moving average price of $88.03 and a 200 day moving average price of $79.56. The firm has a market cap of $4.13 billion, a PE ratio of 15.09, a PEG ratio of 11.46 and a beta of 0.84.

Cabot (NYSE:CBT - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The specialty chemicals company reported $1.67 earnings per share for the quarter, beating analysts' consensus estimates of $1.66 by $0.01. The firm had revenue of $982.00 million for the quarter, compared to analyst estimates of $943.16 million. Cabot had a net margin of 7.97% and a return on equity of 21.33%. Cabot's quarterly revenue was up 6.4% on a year-over-year basis. During the same period last year, the firm posted $1.90 EPS. Cabot has set its FY 2026 guidance at 6.150-6.450 EPS. Sell-side analysts expect that Cabot Corporation will post 6.35 EPS for the current fiscal year.

Cabot Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be issued a $0.4725 dividend. This represents a $1.89 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, August 28th. Cabot's payout ratio is currently 35.73%.

Institutional Trading of Cabot

Several hedge funds have recently modified their holdings of CBT. Torren Management LLC purchased a new position in Cabot in the fourth quarter worth $26,000. Rothschild Investment LLC increased its holdings in shares of Cabot by 170.4% in the 4th quarter. Rothschild Investment LLC now owns 411 shares of the specialty chemicals company's stock valued at $27,000 after purchasing an additional 259 shares in the last quarter. Global Retirement Partners LLC lifted its stake in shares of Cabot by 1,606.9% in the fourth quarter. Global Retirement Partners LLC now owns 495 shares of the specialty chemicals company's stock valued at $33,000 after purchasing an additional 466 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of Cabot by 409.0% in the first quarter. Geneos Wealth Management Inc. now owns 453 shares of the specialty chemicals company's stock valued at $38,000 after purchasing an additional 364 shares during the period. Finally, Danske Bank A S purchased a new stake in Cabot during the third quarter worth about $38,000. 93.18% of the stock is owned by institutional investors and hedge funds.

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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