Albemarle (NYSE:ALB) Shares Gap Down Following Analyst Downgrade

Key Points

• Albemarle shares fell after JPMorgan cut its price target from $160 to $140 while maintaining a neutral rating. The stock opened at $136.30, down from the prior close of $141.51, and later traded near $133.25.
• Analyst sentiment remains broadly positive but has softened, with 15 Buy, 10 Hold, and 1 Sell rating; the consensus rating is “Moderate Buy” with an average price target of $190.04.
• Albemarle reported stronger-than-expected quarterly results, including $3.75 in EPS versus a $3.20 estimate and $1.74 billion in revenue, up 31.1% year over year. Institutional investors own 92.87% of the company, and the quarterly dividend is $0.41 per share.

Shares of Albemarle Corporation (NYSE:ALB - Get Free Report) gapped down before the market opened on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $160.00 to $140.00. The stock had previously closed at $141.51, but opened at $136.30. JPMorgan Chase & Co. currently has a neutral rating on the stock. Albemarle shares last traded at $133.2510, with a volume of 315,227 shares.

Several other research analysts have also recently issued reports on the stock. UBS Group cut their target price on shares of Albemarle from $205.00 to $175.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft upped their price target on shares of Albemarle from $210.00 to $250.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Mizuho dropped their price target on shares of Albemarle from $205.00 to $185.00 and set a "neutral" rating for the company in a research report on Wednesday, July 1st. Zacks Research lowered shares of Albemarle from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Finally, Citigroup decreased their price objective on shares of Albemarle from $225.00 to $175.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Fifteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Albemarle has a consensus rating of "Moderate Buy" and an average price target of $190.04.

Hedge Funds Weigh In On Albemarle

A number of hedge funds and other institutional investors have recently made changes to their positions in ALB. Addison Advisors LLC bought a new stake in Albemarle in the second quarter valued at $28,000. BOKF NA increased its position in Albemarle by 5,771.4% during the 3rd quarter. BOKF NA now owns 411 shares of the specialty chemicals company's stock valued at $33,000 after purchasing an additional 404 shares during the period. Elyxium Wealth LLC bought a new position in Albemarle in the 4th quarter worth $34,000. EverSource Wealth Advisors LLC raised its holdings in Albemarle by 536.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 573 shares of the specialty chemicals company's stock worth $36,000 after purchasing an additional 483 shares in the last quarter. Finally, Torren Management LLC purchased a new stake in shares of Albemarle in the 4th quarter worth about $38,000. Institutional investors own 92.87% of the company's stock.

Albemarle Stock Performance

The company's 50-day moving average price is $131.49 and its 200 day moving average price is $160.50. The stock has a market capitalization of $15.75 billion, a PE ratio of 494.47 and a beta of 1.33. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.35 and a current ratio of 2.09.

Albemarle (NYSE:ALB - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The specialty chemicals company reported $3.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.20 by $0.55. Albemarle had a net margin of 3.09% and a return on equity of 10.96%. The company had revenue of $1.74 billion for the quarter, compared to analysts' expectations of $1.61 billion. During the same quarter in the previous year, the company earned $0.11 earnings per share. Albemarle's quarterly revenue was up 31.1% on a year-over-year basis. On average, equities research analysts expect that Albemarle Corporation will post 11.63 earnings per share for the current fiscal year.

Albemarle Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 11th will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Friday, September 11th. This is a boost from Albemarle's previous quarterly dividend of $0.41. Albemarle's dividend payout ratio (DPR) is 600.00%.

About Albemarle

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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