Cabot (NYSE:CBT) Shares Gap Down – Here’s What Happened

Cabot Corporation (NYSE:CBT)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $75.72, but opened at $70.40. Cabot shares last traded at $74.4360, with a volume of 30,764 shares.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Truist Financial lowered their price objective on shares of Cabot from $100.00 to $95.00 and set a “buy” rating on the stock in a research report on Wednesday. UBS Group cut their target price on shares of Cabot from $86.00 to $80.00 and set a “neutral” rating on the stock in a research note on Wednesday. Wall Street Zen upgraded Cabot from a “hold” rating to a “buy” rating in a report on Sunday, October 11th. JPMorgan Chase & Co. raised their target price on Cabot from $70.00 to $78.00 and gave the stock an “underweight” rating in a research report on Friday, August 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cabot in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $85.60.

Cabot Trading Down 2.9%

The company has a market cap of $3.77 billion, a PE ratio of 18.19, a PEG ratio of 9.30 and a beta of 0.83. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.97 and a current ratio of 2.16. The company has a 50 day simple moving average of $77.38 and a two-hundred day simple moving average of $79.53.

Cabot (NYSE:CBT) last posted its quarterly earnings results on Monday, November 2nd. The specialty chemicals company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.55 by $0.06. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $927.29 million. Cabot had a net margin of 5.69% and a return on equity of 19.64%. The firm’s revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.70 earnings per share. Sell-side analysts forecast that Cabot Corporation will post 6.45 EPS for the current year.

Insider Activity

In other news, CEO Sean Keohane sold 134,895 shares of the business’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $85.00, for a total transaction of $11,466,075.00. Following the transaction, the chief executive officer directly owned 404,134 shares in the company, valued at $34,351,390. The trade was a 25.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Over the last three months, insiders have sold 229,597 shares of company stock worth $19,646,746. Company insiders own 3.08% of the company’s stock.

Institutional Trading of Cabot

Several hedge funds and other institutional investors have recently modified their holdings of CBT. Root Financial Partners LLC bought a new stake in Cabot during the third quarter valued at about $27,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Cabot in the second quarter worth about $33,000. Global Retirement Partners LLC bought a new position in shares of Cabot in the second quarter worth about $88,000. Rockefeller Capital Management L.P. increased its stake in shares of Cabot by 115.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,152 shares of the specialty chemicals company’s stock worth $76,000 after purchasing an additional 617 shares during the period. Finally, Allworth Financial LP acquired a new position in shares of Cabot during the 2nd quarter worth about $145,000. 93.18% of the stock is currently owned by hedge funds and other institutional investors.

About Cabot

Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company develops and manufactures materials used to improve the performance, durability, conductivity, color and purity of products across a range of industries.

Cabot’s products include carbon black used in tires, rubber goods, coatings, plastics and printing inks; specialty carbons and conductive materials for batteries and other applications; and specialty compounds and masterbatches.