Cabot (NYSE:CBT) Shares Down 4.8% on Disappointing Earnings

Cabot Co. (NYSE:CBT - Get Free Report)'s share price was down 4.8% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $104.16 and last traded at $104.80. Approximately 69,569 shares were traded during trading, a decline of 79% from the average daily volume of 334,819 shares. The stock had previously closed at $110.09.

The specialty chemicals company reported $1.80 earnings per share for the quarter, missing analysts' consensus estimates of $1.81 by ($0.01). Cabot had a net margin of 12.05% and a return on equity of 26.99%. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the business earned $1.65 EPS. Cabot's revenue for the quarter was up 3.7% compared to the same quarter last year.

Analysts Set New Price Targets

Several research analysts have weighed in on CBT shares. Mizuho raised their price objective on shares of Cabot from $103.00 to $122.00 and gave the stock an "outperform" rating in a report on Tuesday. JPMorgan Chase & Co. increased their price target on shares of Cabot from $95.00 to $105.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 7th. Finally, UBS Group lowered their price objective on Cabot from $103.00 to $98.00 and set a "neutral" rating for the company in a report on Tuesday, August 6th. Three analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $105.00.

Insiders Place Their Bets

In other Cabot news, CFO Erica Mclaughlin sold 23,274 shares of the firm's stock in a transaction dated Wednesday, August 7th. The shares were sold at an average price of $99.79, for a total value of $2,322,512.46. Following the transaction, the chief financial officer now owns 59,814 shares of the company's stock, valued at $5,968,839.06. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In related news, CEO Sean D. Keohane sold 25,617 shares of the stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $101.55, for a total value of $2,601,406.35. Following the sale, the chief executive officer now owns 331,174 shares of the company's stock, valued at $33,630,719.70. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Erica Mclaughlin sold 23,274 shares of the company's stock in a transaction dated Wednesday, August 7th. The stock was sold at an average price of $99.79, for a total transaction of $2,322,512.46. Following the completion of the transaction, the chief financial officer now owns 59,814 shares of the company's stock, valued at approximately $5,968,839.06. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 71,939 shares of company stock valued at $7,308,812. Company insiders own 3.07% of the company's stock.

Hedge Funds Weigh In On Cabot

Several hedge funds and other institutional investors have recently made changes to their positions in the business. BNP Paribas Financial Markets raised its stake in Cabot by 28.8% during the 1st quarter. BNP Paribas Financial Markets now owns 51,271 shares of the specialty chemicals company's stock valued at $4,727,000 after acquiring an additional 11,471 shares in the last quarter. Janney Montgomery Scott LLC lifted its holdings in Cabot by 125.4% in the first quarter. Janney Montgomery Scott LLC now owns 10,911 shares of the specialty chemicals company's stock worth $1,006,000 after purchasing an additional 6,070 shares during the period. Sei Investments Co. grew its position in Cabot by 6.1% in the 1st quarter. Sei Investments Co. now owns 862,081 shares of the specialty chemicals company's stock valued at $79,484,000 after buying an additional 49,467 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in Cabot by 571.9% during the 2nd quarter. Assenagon Asset Management S.A. now owns 127,116 shares of the specialty chemicals company's stock valued at $11,681,000 after buying an additional 108,197 shares during the period. Finally, Tidal Investments LLC raised its position in shares of Cabot by 101.7% during the 1st quarter. Tidal Investments LLC now owns 18,107 shares of the specialty chemicals company's stock worth $1,669,000 after buying an additional 9,131 shares in the last quarter. 93.18% of the stock is currently owned by institutional investors and hedge funds.

Cabot Trading Down 1.1 %

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.45 and a current ratio of 2.22. The company has a market capitalization of $5.97 billion, a price-to-earnings ratio of 12.87, a price-to-earnings-growth ratio of 0.91 and a beta of 1.20. The business's 50 day moving average price is $108.30 and its two-hundred day moving average price is $101.01.

About Cabot

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.