Zacks Investment Research downgraded shares of Cabot (NYSE:CBT) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $40.00 price objective on the specialty chemicals company’s stock.
According to Zacks, “Earnings estimates for Cabot for the third quarter of fiscal 2020 have been moving down over the past month. Cabot remains committed to boost its specialty compounds business globally. It will also gain from the NSCC carbon plant buyout. The acquisition will support its growth objectives and broaden capabilities. The company also remains focused on creating shareholder value. However, Cabot is facing headwind from pricing pressure. Intense competition and weak demand are affecting prices in its metal oxides business. A challenging pricing environment in Europe and China is expected to persist in the near term. Softer demand and declining automotive production also remain a worry. Weak automotive production due to the coronavirus outbreak is affecting the company's volumes. High debt level is another concern.”
A number of other analysts have also recently weighed in on CBT. Northcoast Research cut shares of Cabot from a buy rating to a neutral rating in a report on Friday, May 1st. UBS Group increased their price objective on shares of Cabot from $38.00 to $45.00 and gave the stock a buy rating in a research note on Friday, June 19th. Deutsche Bank lifted their target price on Cabot from $23.00 to $32.00 and gave the company a hold rating in a research note on Thursday, April 16th. ValuEngine upgraded Cabot from a sell rating to a hold rating in a research report on Thursday, July 2nd. Finally, SunTrust Banks boosted their price objective on Cabot from $35.00 to $50.00 in a research report on Wednesday, June 10th. One analyst has rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company’s stock. Cabot has a consensus rating of Hold and a consensus price target of $42.00.
Shares of Cabot stock opened at $36.48 on Wednesday. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.25 and a current ratio of 2.08. Cabot has a 1 year low of $20.00 and a 1 year high of $50.58. The firm’s 50-day simple moving average is $37.19 and its 200-day simple moving average is $35.69. The firm has a market cap of $2.06 billion, a PE ratio of 20.38, a price-to-earnings-growth ratio of 9.43 and a beta of 1.75.
Cabot (NYSE:CBT) last released its earnings results on Monday, May 11th. The specialty chemicals company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.69 by $0.08. The company had revenue of $710.00 million for the quarter, compared to the consensus estimate of $752.33 million. Cabot had a return on equity of 17.88% and a net margin of 3.38%. Cabot’s quarterly revenue was down 15.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.99 EPS. On average, equities analysts predict that Cabot will post 1.93 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.84%. The ex-dividend date of this dividend is Thursday, August 27th. Cabot’s dividend payout ratio (DPR) is presently 35.81%.
Institutional investors and hedge funds have recently made changes to their positions in the business. Fuller & Thaler Asset Management Inc. raised its position in Cabot by 17.9% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 2,817,896 shares of the specialty chemicals company’s stock valued at $73,603,000 after buying an additional 427,606 shares during the period. Victory Capital Management Inc. grew its stake in Cabot by 18.3% during the 1st quarter. Victory Capital Management Inc. now owns 1,721,648 shares of the specialty chemicals company’s stock valued at $44,969,000 after acquiring an additional 266,298 shares in the last quarter. State Street Corp increased its holdings in shares of Cabot by 1.1% in the 1st quarter. State Street Corp now owns 1,477,413 shares of the specialty chemicals company’s stock valued at $38,590,000 after purchasing an additional 16,597 shares during the period. Deprince Race & Zollo Inc. lifted its position in shares of Cabot by 18.2% in the first quarter. Deprince Race & Zollo Inc. now owns 978,780 shares of the specialty chemicals company’s stock worth $25,566,000 after purchasing an additional 151,014 shares in the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of Cabot by 14.0% during the first quarter. AQR Capital Management LLC now owns 971,853 shares of the specialty chemicals company’s stock worth $25,385,000 after purchasing an additional 119,444 shares during the period. Institutional investors own 84.93% of the company’s stock.
Cabot Corporation operates as a specialty chemicals and performance materials company. The company offers rubber grade carbon blacks 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 compounds of carbon black and rubber.
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