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Cabot (NYSE:CBT) Shares Up 7.8% on Strong Earnings

Cabot logo with Basic Materials background

Key Points

  • Cabot Corporation's shares increased by 7.8% following the announcement of quarterly earnings that exceeded expectations, reporting $1.90 EPS against the consensus estimate of $1.80.
  • The company declared a quarterly dividend of $0.45 per share, representing an annual yield of 2.3%, with a payout ratio of 23.29%.
  • Institutional ownership is significant, with hedge funds owning 93.18% of Cabot's shares, indicating strong investor confidence in the company.
  • MarketBeat previews the top five stocks to own by September 1st.

Shares of Cabot Corporation (NYSE:CBT - Get Free Report) shot up 7.8% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $78.93 and last traded at $79.49. 44,170 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 425,745 shares. The stock had previously closed at $73.71.

The specialty chemicals company reported $1.90 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.10. Cabot had a net margin of 11.08% and a return on equity of 26.76%. The company had revenue of $923.00 million during the quarter, compared to analysts' expectations of $957.29 million.

Cabot Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Friday, August 29th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 2.3%. Cabot's payout ratio is 23.29%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Wall Street Zen cut shares of Cabot from a "buy" rating to a "hold" rating in a research report on Wednesday, May 7th. UBS Group increased their target price on shares of Cabot from $81.00 to $82.00 and gave the company a "neutral" rating in a research report on Tuesday.

Get Our Latest Stock Analysis on Cabot

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CBT. LPL Financial LLC increased its stake in Cabot by 241.6% during the 4th quarter. LPL Financial LLC now owns 31,071 shares of the specialty chemicals company's stock valued at $2,837,000 after purchasing an additional 21,974 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Cabot by 27.1% during the 4th quarter. JPMorgan Chase & Co. now owns 451,513 shares of the specialty chemicals company's stock valued at $41,228,000 after purchasing an additional 96,179 shares in the last quarter. Pictet Asset Management Holding SA increased its stake in Cabot by 14.7% during the 4th quarter. Pictet Asset Management Holding SA now owns 7,933 shares of the specialty chemicals company's stock valued at $724,000 after purchasing an additional 1,016 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in Cabot by 2.5% during the 4th quarter. Envestnet Asset Management Inc. now owns 335,261 shares of the specialty chemicals company's stock valued at $30,613,000 after purchasing an additional 8,044 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its stake in Cabot by 7.8% during the 4th quarter. Russell Investments Group Ltd. now owns 33,459 shares of the specialty chemicals company's stock valued at $3,055,000 after purchasing an additional 2,413 shares in the last quarter. Institutional investors and hedge funds own 93.18% of the company's stock.

Cabot Price Performance

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.30 and a current ratio of 1.96. The firm has a market cap of $4.24 billion, a price-to-earnings ratio of 10.21 and a beta of 0.87. The stock's 50 day simple moving average is $75.72 and its 200-day simple moving average is $79.73.

About Cabot

(Get Free Report)

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.

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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.

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