Hsbc Holdings PLC Cuts Holdings in Cabot Corporation $CBT

Key Points

• HSBC Holdings PLC sharply reduced its Cabot Corporation stake by 84.1% in the fourth quarter, selling 60,689 shares and leaving it with 11,515 shares worth about $761,000.
• Cabot’s stock has drawn mixed analyst views: the consensus rating is Hold with an average target price of $85.80, though some firms recently raised targets or upgraded the stock to buy.
• The company reported better-than-expected quarterly earnings of $1.61 per share and announced a quarterly dividend of $0.4725 per share, implying an annual yield of about 2.2%.

Hsbc Holdings PLC lowered its position in Cabot Corporation (NYSE:CBT - Free Report) by 84.1% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 11,515 shares of the specialty chemicals company's stock after selling 60,689 shares during the period. Hsbc Holdings PLC's holdings in Cabot were worth $761,000 at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Wall Street Zen upgraded Cabot from a "hold" rating to a "buy" rating in a research report on Sunday, June 14th. Mizuho lifted their price target 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. JPMorgan Chase & Co. lifted their price target on shares of Cabot from $68.00 to $70.00 and gave the company an "underweight" rating in a research note on Wednesday, May 13th. UBS Group upped their price objective on shares of Cabot from $81.00 to $86.00 and gave the stock a "neutral" rating in a research report on Friday, May 8th. Finally, Truist Financial assumed coverage on shares of Cabot in a report on Monday, June 8th. They set a "buy" rating and a $98.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $85.80.

Cabot Price Performance

Shares of Cabot stock opened at $87.68 on Wednesday. The business has a 50 day simple moving average of $85.86 and a two-hundred day simple moving average of $77.50. Cabot Corporation has a 12 month low of $58.33 and a 12 month high of $94.53. The stock has a market capitalization of $4.53 billion, a P/E ratio of 16.57, a PEG ratio of 11.55 and a beta of 0.83. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.45 and a quick ratio of 0.96.

Cabot (NYSE:CBT - Get Free Report) last released its earnings results on Tuesday, May 5th. The specialty chemicals company reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.47 by $0.14. Cabot had a return on equity of 21.33% and a net margin of 7.97%.The business had revenue of $904.00 million for the quarter, compared to the consensus estimate of $900.30 million. During the same quarter last year, the business posted $1.90 earnings per share. The business's quarterly revenue was down 3.4% compared to the same quarter last year. Cabot has set its FY 2026 guidance at 6.000-6.50 EPS. As a group, analysts predict that Cabot Corporation will post 6.34 EPS for the current fiscal year.

Cabot Announces Dividend

The company 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. The ex-dividend date is Friday, August 28th. This represents a $1.89 dividend on an annualized basis and a yield of 2.2%. Cabot's dividend payout ratio (DPR) is presently 35.73%.

Cabot 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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