Cabot (NYSE:CBT) announced its quarterly earnings results on Monday. The specialty chemicals company reported $1.00 EPS for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.09), Briefing.com reports. The firm had revenue of $850.00 million during the quarter, compared to analyst estimates of $856.76 million. Cabot had a negative net margin of 4.46% and a positive return on equity of 17.41%. The business’s revenue was up 17.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.91 EPS. Cabot updated its FY 2019 guidance to $4.35-4.75 EPS and its FY19 guidance to $4.35-4.75 EPS.
Shares of NYSE CBT traded down $2.46 during mid-day trading on Tuesday, reaching $48.94. 111,283 shares of the company were exchanged, compared to its average volume of 474,645. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.97 and a current ratio of 1.51. The stock has a market cap of $3.21 billion, a PE ratio of 14.27, a P/E/G ratio of 1.01 and a beta of 1.50. Cabot has a twelve month low of $46.90 and a twelve month high of $68.63.
A number of brokerages have commented on CBT. TheStreet cut shares of Cabot from a “b” rating to a “c+” rating in a research note on Friday, October 19th. Zacks Investment Research cut shares of Cabot from a “buy” rating to a “sell” rating in a research note on Tuesday, October 16th. Loop Capital set a $82.00 price target on shares of Cabot and gave the company a “buy” rating in a research note on Tuesday. Barclays began coverage on shares of Cabot in a research note on Monday, October 8th. They issued an “overweight” rating and a $76.00 price target for the company. Finally, ValuEngine cut shares of Cabot from a “sell” rating to a “strong sell” rating in a research note on Thursday, November 1st. Two analysts have rated the stock with a sell rating and six have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $75.00.
Cabot announced that its board has initiated a share repurchase program on Monday, July 16th that authorizes the company to buyback $400.00 million in shares. This buyback authorization authorizes the specialty chemicals company to reacquire up to 10.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.
In related news, Director Patrick M. Prevost sold 19,481 shares of the firm’s stock in a transaction dated Monday, August 20th. The shares were sold at an average price of $65.04, for a total transaction of $1,267,044.24. Following the transaction, the director now directly owns 257,413 shares of the company’s stock, valued at $16,742,141.52. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Nicholas S. Cross sold 16,000 shares of the firm’s stock in a transaction dated Tuesday, August 21st. The stock was sold at an average price of $65.86, for a total transaction of $1,053,760.00. Following the transaction, the insider now directly owns 48,597 shares in the company, valued at $3,200,598.42. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 89,448 shares of company stock valued at $5,860,779. 2.20% of the stock is currently owned by corporate insiders.
Large investors have recently added to or reduced their stakes in the stock. Signition LP bought a new position in Cabot during the second quarter worth about $234,000. Advisory Services Network LLC increased its position in Cabot by 943.5% during the second quarter. Advisory Services Network LLC now owns 3,882 shares of the specialty chemicals company’s stock worth $255,000 after acquiring an additional 3,510 shares during the period. Strs Ohio bought a new position in Cabot during the second quarter worth about $349,000. Oakbrook Investments LLC increased its position in Cabot by 17.2% during the second quarter. Oakbrook Investments LLC now owns 5,790 shares of the specialty chemicals company’s stock worth $358,000 after acquiring an additional 850 shares during the period. Finally, Seven Eight Capital LP bought a new position in Cabot during the third quarter worth about $370,000. 85.74% of the stock is currently owned by institutional investors and hedge funds.
Cabot Company Profile
Cabot Corporation operates as a specialty chemicals and performance materials company. The company offers carbon black, a form of elemental carbon used to enhance the physical properties of the systems and applications in which it is incorporated; and rubber blacks for use as a rubber reinforcing agent and performance additive in tires, hoses, belts, extruded profiles, and molded goods.
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