Cabot (NYSE:CBT) Releases Earnings Results, Beats Expectations By $0.02 EPS

Cabot (NYSE:CBT - Get Free Report) released its earnings results on Monday. The specialty chemicals company reported $1.76 EPS for the quarter, beating analysts' consensus estimates of $1.74 by $0.02, Zacks reports. Cabot had a return on equity of 26.60% and a net margin of 9.51%. Cabot updated its FY 2025 guidance to 7.400-7.800 EPS.

Cabot Trading Down 1.9 %

Shares of NYSE:CBT traded down $1.71 during trading on Friday, reaching $86.17. 484,546 shares of the company traded hands, compared to its average volume of 383,378. The company has a current ratio of 2.08, a quick ratio of 1.36 and a debt-to-equity ratio of 0.68. Cabot has a 52-week low of $77.21 and a 52-week high of $117.46. The business's fifty day moving average is $93.48 and its 200-day moving average is $101.71. The firm has a market capitalization of $4.67 billion, a price-to-earnings ratio of 12.78, a P/E/G ratio of 0.74 and a beta of 1.19.

Cabot Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, February 28th will be given a dividend of $0.43 per share. The ex-dividend date of this dividend is Friday, February 28th. This represents a $1.72 annualized dividend and a yield of 2.00%. Cabot's payout ratio is 22.84%.

Cabot announced that its Board of Directors has authorized a stock buyback plan on Tuesday, December 3rd that authorizes the company to repurchase 10,000,000 shares. This repurchase authorization authorizes the specialty chemicals company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling

In other Cabot news, CAO Lisa M. Dumont sold 865 shares of the company's stock in a transaction that occurred on Wednesday, November 13th. The stock was sold at an average price of $111.74, for a total transaction of $96,655.10. Following the completion of the transaction, the chief accounting officer now owns 9,742 shares of the company's stock, valued at $1,088,571.08. This represents a 8.15 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Hobart Kalkstein sold 34,759 shares of the business's stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $115.23, for a total value of $4,005,279.57. Following the transaction, the executive vice president now directly owns 50,627 shares in the company, valued at $5,833,749.21. This trade represents a 40.71 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 50,190 shares of company stock valued at $5,751,534 over the last three months. 3.03% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages have recently commented on CBT. Mizuho reduced their price objective on Cabot from $122.00 to $110.00 and set an "outperform" rating on the stock in a research report on Tuesday, January 7th. JPMorgan Chase & Co. cut shares of Cabot from a "neutral" rating to an "underweight" rating and set a $105.00 price target on the stock. in a research report on Monday, November 11th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $102.00.

Cabot Company Profile

Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are 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 engineered elastomer composites solutions.