2,652,009 Shares in Albemarle Corporation $ALB Bought by Primecap Management Co. CA

Key Points

• Primecap Management Co. CA acquired 2.65 million Albemarle shares during the second quarter, worth approximately $358.1 million and representing a 2.25% stake. Institutional investors collectively own 92.87% of the company.
• Albemarle reported stronger-than-expected quarterly results, with earnings of $3.75 per share and revenue of $1.74 billion, up 31.1% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $190.04, despite recent target reductions and the stock opening at $133.14.

Primecap Management Co. CA bought a new position in shares of Albemarle Corporation (NYSE:ALB - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 2,652,009 shares of the specialty chemicals company's stock, valued at approximately $358,101,000. Primecap Management Co. CA owned 2.25% of Albemarle as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. Norges Bank acquired a new position in shares of Albemarle in the 4th quarter valued at $165,271,000. Deutsche Bank AG acquired a new stake in Albemarle during the 2nd quarter worth about $131,049,000. Phoenix Financial Ltd. acquired a new stake in Albemarle during the 4th quarter worth about $130,415,000. Bank of New York Mellon Corp acquired a new position in shares of Albemarle in the second quarter worth about $103,268,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Albemarle by 4,338.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 738,430 shares of the specialty chemicals company's stock worth $104,444,000 after buying an additional 721,793 shares during the period. 92.87% of the stock is owned by hedge funds and other institutional investors.

Albemarle Stock Down 5.9%

Albemarle stock opened at $133.14 on Wednesday. The company has a current ratio of 2.09, a quick ratio of 1.35 and a debt-to-equity ratio of 0.22. Albemarle Corporation has a 1-year low of $71.25 and a 1-year high of $221.00. The firm's fifty day simple moving average is $130.83 and its 200-day simple moving average is $160.25. The company has a market capitalization of $15.71 billion, a P/E ratio of 493.12 and a beta of 1.33.

Albemarle (NYSE:ALB - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The specialty chemicals company reported $3.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.20 by $0.55. Albemarle had a net margin of 3.09% and a return on equity of 10.96%. The firm had revenue of $1.74 billion during the quarter, compared to analysts' expectations of $1.61 billion. During the same period in the prior year, the company posted $0.11 earnings per share. Albemarle's revenue for the quarter was up 31.1% on a year-over-year basis. Sell-side analysts forecast that Albemarle Corporation will post 11.63 earnings per share for the current fiscal year.

Albemarle Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.2%. This is a positive change from Albemarle's previous quarterly dividend of $0.41. Albemarle's payout ratio is currently 600.00%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on ALB shares. Scotiabank cut their price target on shares of Albemarle from $200.00 to $190.00 and set a "sector outperform" rating on the stock in a report on Monday, August 10th. Royal Bank Of Canada decreased their price objective on shares of Albemarle from $166.00 to $157.00 and set an "outperform" rating for the company in a research note on Monday, August 10th. Morgan Stanley reissued a "reduce" rating and set a $161.00 target price on shares of Albemarle in a research note on Monday, August 10th. Truist Financial reduced their target price on Albemarle from $245.00 to $225.00 and set a "buy" rating for the company in a report on Friday, August 7th. Finally, Argus raised their target price on Albemarle from $185.00 to $230.00 and gave the stock a "buy" rating in a research report on Monday, May 11th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $190.04.

Albemarle Company Profile

Albemarle Corporation is a leading global specialty chemicals company primarily engaged in the production and distribution of lithium, bromine, and catalysts. Its lithium segment supplies key components used in rechargeable batteries for electric vehicles, portable electronics, and grid storage systems. The company's bromine specialty products serve a wide range of industries, including oil and gas drilling fluids, fire safety solutions, and water treatment. In its catalysts division, Albemarle provides products for petroleum refining, chemical processing and emissions control.

Founded in 1994 as a spin-off from Ethyl Corporation, Albemarle has grown through strategic acquisitions and capacity expansions to become one of the world's foremost chemical producers.

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