Cabot (NYSE:CBT) Downgraded to Hold at Zacks Investment Research

Cabot (NYSE:CBT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks.com reports. They currently have a $52.00 price target on the specialty chemicals company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 4.31% from the company’s current price.

According to Zacks, “Earnings estimates for Cabot for the fourth quarter have been stable over the past month. It is committed to boost its specialty compounds business globally. The company has expanded its global footprint in black masterbatch and compounds. Cabot will also gain from the carbon black plant buyout in China. The acquisition will support its growth objectives and broaden its capabilities. The buyout will enable the company to meet the growing demand for rubber and specialty carbons products. It is also witnessing continued strong demand in Reinforcement Materials and Performance Chemicals units driven by higher volumes. However, it faces headwind from the softness in mercury removal applications. Higher raw material costs are also likely to hurt margins. Costs related to maintenance and plant outage may also impact fourth-quarter results.”

CBT has been the topic of several other research reports. TheStreet lowered Cabot from a “b-” rating to a “c+” rating in a report on Tuesday, July 20th. Loop Capital upgraded Cabot from a “hold” rating to a “buy” rating and set a $78.00 price objective on the stock in a research note on Thursday, July 1st. JPMorgan Chase & Co. upgraded Cabot from a “neutral” rating to an “overweight” rating and set a $62.00 price objective for the company in a research note on Friday, July 23rd. Finally, Jefferies Financial Group began coverage on shares of Cabot in a research note on Tuesday. They issued a “buy” rating and a $75.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Cabot has an average rating of “Buy” and an average price target of $71.89.

Shares of CBT opened at $49.85 on Wednesday. The company has a quick ratio of 1.25, a current ratio of 1.95 and a debt-to-equity ratio of 0.99. Cabot has a 12 month low of $34.84 and a 12 month high of $65.25. The company’s fifty day moving average is $53.97 and its 200-day moving average is $55.90. The firm has a market cap of $2.83 billion, a price-to-earnings ratio of -51.39 and a beta of 1.64.

Cabot (NYSE:CBT) last announced its earnings results on Sunday, August 8th. The specialty chemicals company reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.18 by $0.17. Cabot had a positive return on equity of 27.56% and a negative net margin of 1.61%. The firm had revenue of $917.00 million during the quarter, compared to analysts’ expectations of $804.70 million. During the same quarter in the prior year, the business earned ($0.07) earnings per share. The company’s revenue was up 77.0% on a year-over-year basis. As a group, research analysts predict that Cabot will post 4.96 earnings per share for the current fiscal year.

A number of hedge funds have recently made changes to their positions in the business. Cullen Frost Bankers Inc. bought a new position in Cabot in the second quarter valued at $34,000. Burleson & Company LLC acquired a new position in Cabot during the first quarter valued at approximately $52,000. Nisa Investment Advisors LLC grew its stake in Cabot by 100.0% in the second quarter. Nisa Investment Advisors LLC now owns 1,000 shares of the specialty chemicals company’s stock valued at $57,000 after purchasing an additional 500 shares in the last quarter. Parisi Gray Wealth Management bought a new stake in shares of Cabot during the 2nd quarter worth approximately $69,000. Finally, Bbva USA bought a new position in shares of Cabot in the second quarter valued at $113,000. Hedge funds and other institutional investors own 90.44% of the company’s stock.

Cabot Company Profile

Cabot Corp. is a global specialty chemicals and performance materials company. Its products are rubber and specialty grade carbon blacks, specialty compounds, fumed metal oxides, activated carbons, inkjet colorants, and aerogel. The company operates through the following segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions.

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