Albemarle (NYSE:ALB) Shares Gap Down - What's Next?

Key Points

• Albemarle shares fell sharply, opening at $97.00 versus the prior close of $101.27, while trading below both its 50-day and 200-day moving averages.
• Analyst sentiment remains positive but has weakened, with multiple firms cutting price targets. The stock carries a consensus “Moderate Buy” rating and an average target price of $185.27.
• Albemarle reported quarterly earnings and revenue above expectations and raised its quarterly dividend to $0.41 per share, although its reported dividend payout ratio remains unusually high at 607.41%.

Albemarle Corporation (NYSE:ALB - Get Free Report)'s stock price gapped down before the market opened on Monday. The stock had previously closed at $101.27, but opened at $97.00. Albemarle shares last traded at $97.3470, with a volume of 470,037 shares.

Wall Street Analyst Weigh In

ALB has been the topic of several research reports. Zacks Research downgraded Albemarle from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Mizuho dropped their price target on Albemarle from $140.00 to $130.00 and set a "neutral" rating for the company in a research report on Thursday, October 1st. Citigroup reduced their price objective on Albemarle from $225.00 to $175.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Rothschild & Co Redburn reduced their price objective on Albemarle from $188.00 to $170.00 and set a "neutral" rating for the company in a research note on Wednesday, July 1st. Finally, Royal Bank Of Canada decreased their price objective on Albemarle from $166.00 to $157.00 and set an "outperform" rating on the stock in a report on Monday, August 10th. Fifteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $185.27.

Albemarle Stock Performance

The company has a market cap of $11.60 billion, a PE ratio of 363.98, a PEG ratio of 0.60 and a beta of 1.36. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.35 and a current ratio of 2.09. The firm's 50 day moving average is $121.89 and its 200-day moving average is $148.32.

Albemarle (NYSE:ALB - Get Free Report) last released its earnings results on Wednesday, August 5th. The specialty chemicals company reported $3.75 earnings per share for the quarter, topping analysts' consensus estimates of $3.20 by $0.55. The business had revenue of $1.74 billion for the quarter, compared to analyst estimates of $1.61 billion. Albemarle had a net margin of 3.09% and a return on equity of 10.96%. The business's revenue was up 31.1% on a year-over-year basis. During the same period last year, the company posted $0.11 EPS. On average, research analysts anticipate that Albemarle Corporation will post 11.25 earnings per share for the current fiscal year.

Albemarle Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Friday, September 11th were given a dividend of $0.41 per share. The ex-dividend date was Friday, September 11th. This is a positive change from Albemarle's previous quarterly dividend of $0.4050. This represents a $1.64 dividend on an annualized basis and a yield of 1.7%. Albemarle's dividend payout ratio (DPR) is 607.41%.

Hedge Funds Weigh In On Albemarle

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Addison Advisors LLC acquired a new position in shares of Albemarle during the second quarter worth about $28,000. Sound Income Strategies LLC raised its holdings in Albemarle by 190.1% in the first quarter. Sound Income Strategies LLC now owns 293 shares of the specialty chemicals company's stock valued at $52,000 after acquiring an additional 192 shares in the last quarter. Dakota Community Bank & Trust NA acquired a new stake in Albemarle in the first quarter valued at approximately $54,000. Fiduciary Financial Advisors acquired a new stake in Albemarle in the second quarter valued at approximately $41,000. Finally, Jones Financial Companies Lllp purchased a new position in Albemarle in the second quarter worth approximately $42,000. Institutional investors and hedge funds own 92.87% of the company's stock.

About Albemarle

Albemarle Corporation NYSE: ALB is a global specialty chemicals company that develops, manufactures and markets materials used in energy storage, transportation, consumer products and industrial applications. The company is best known for its lithium business, which supplies lithium compounds used in rechargeable batteries for electric vehicles, portable electronics and energy-storage systems.

Albemarle also produces bromine-based specialty chemicals used in areas such as fire safety, water treatment, pharmaceutical manufacturing and other industrial processes.

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