Cabot (NYSE:CBT) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Cabot (NYSE:CBT) posted its earnings results on Monday. The specialty chemicals company reported $1.76 EPS for the quarter, topping 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 Stock Performance

Shares of Cabot stock traded down $1.69 on Monday, hitting $84.78. 508,941 shares of the company’s stock were exchanged, compared to its average volume of 356,931. Cabot has a 1 year low of $70.63 and a 1 year high of $117.46. The company has a 50-day simple moving average of $95.85 and a 200-day simple moving average of $102.13. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.36 and a current ratio of 2.08. The stock has a market capitalization of $4.60 billion, a PE ratio of 12.58, a PEG ratio of 0.74 and a beta of 1.19.

Cabot Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, February 28th will be paid a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 2.03%. The ex-dividend date of this dividend is Friday, February 28th. Cabot’s dividend payout ratio (DPR) is presently 25.52%.

Cabot declared that its board has authorized a stock buyback program on Tuesday, December 3rd that allows the company to repurchase 10,000,000 outstanding shares. This repurchase authorization allows the specialty chemicals company to purchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

CBT has been the subject of several research analyst reports. Mizuho reduced their price objective on Cabot from $122.00 to $110.00 and set an “outperform” rating for the company in a 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 objective for the company. in a report on Monday, November 11th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $102.00.

Insider Buying and Selling

In related news, CAO Lisa M. Dumont sold 865 shares of Cabot stock in a transaction on Wednesday, November 13th. The shares were sold at an average price of $111.74, for a total transaction of $96,655.10. Following the transaction, the chief accounting officer now owns 9,742 shares in the company, valued at approximately $1,088,571.08. The trade was a 8.15 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Hobart Kalkstein sold 34,759 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $115.23, for a total value of $4,005,279.57. Following the sale, the executive vice president now owns 50,627 shares of the company’s stock, valued at $5,833,749.21. This represents a 40.71 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 50,190 shares of company stock valued at $5,751,534. 3.03% of the stock is owned by company insiders.

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.