Cabot (NYSE:CBT) Shares Gap Down – What’s Next?

Shares of Cabot Corporation (NYSE:CBT) 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 trading hands.

More Cabot News

Here are the key news stories impacting Cabot this week:

• Positive Sentiment: Cabot reported fourth-quarter adjusted EPS of $1.61, exceeding the $1.55 consensus estimate, while revenue rose 12.2% year over year to $1.01 billion, well above expectations of approximately $927 million. Cabot Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Battery Materials generated $43 million of fiscal-year EBITDA, and Cabot secured a $50 million U.S. Department of Energy grant to expand domestic production of advanced battery conductive additives in Louisiana and Texas. Cabot Fiscal 2026 Results
• Positive Sentiment: Fiscal 2026 operating cash flow of $421 million supported $207 million of capital investment, $97 million in dividends and $146 million in share repurchases, signaling continued shareholder returns and investment capacity. Cabot Fiscal 2026 Results
• Neutral Sentiment: Management cited strong execution despite a difficult macroeconomic backdrop. Fiscal 2026 adjusted EPS was $6.42, compared with $7.25 the prior year, highlighting mixed underlying performance. Cabot Q4 2026 Earnings Call Transcript
• Negative Sentiment: Cabot forecast fiscal 2027 EPS of $6.15 to $6.75, below the $7.03 analyst consensus. The cautious outlook suggests macroeconomic weakness and margin pressure may persist. Cabot Fiscal 2026 Earnings Results
• Negative Sentiment: Although earnings and revenue beat estimates, investors focused on weaker margins and the year-over-year decline in adjusted EPS, causing the stock to decrease in trading. Cabot Falls Despite Beating Estimates

Wall Street Analysts Forecast Growth

CBT has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cabot in a research report on Friday, August 21st. Wall Street Zen raised Cabot from a “hold” rating to a “buy” rating in a research report on Sunday, October 11th. Truist Financial set a $100.00 price target on Cabot in a research note on Wednesday, August 5th. JPMorgan Chase & Co. raised their price target on Cabot from $70.00 to $78.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Finally, UBS Group lowered their price target on Cabot from $92.00 to $86.00 and set a “neutral” rating on the stock in a research report on Monday, October 5th. Two 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. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $87.80.

Cabot Stock Down 3.1%

The firm has a fifty day simple moving average of $77.79 and a 200-day simple moving average of $79.52. The firm has a market cap of $3.79 billion, a price-to-earnings ratio of 20.78, a P/E/G ratio of 8.68 and a beta of 0.83. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.97 and a current ratio of 1.47.

Cabot (NYSE:CBT) last released its quarterly earnings data on Monday, November 2nd. The specialty chemicals company reported $1.61 EPS for the quarter, beating the consensus estimate of $1.55 by $0.06. The firm had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $927.29 million. Cabot had a net margin of 5.23% and a return on equity of 20.29%. The company’s quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.70 earnings per share. As a group, sell-side analysts expect that Cabot Corporation will post 6.35 EPS for the current year.

Insider Buying and Selling

In other Cabot news, CEO Sean Keohane sold 134,895 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 404,134 shares in the company, valued at $34,351,390. This trade represents a 25.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last quarter, insiders have sold 229,597 shares of company stock valued at $19,646,746. 3.08% of the stock is currently owned by corporate insiders.

Institutional Trading of Cabot

A number of institutional investors have recently bought and sold shares of CBT. BlackRock Inc. purchased a new stake in shares of Cabot in the second quarter worth $633,302,000. Bank of America Corp DE bought a new position in shares of Cabot during the second quarter valued at about $150,772,000. Bank of New York Mellon Corp bought a new stake in Cabot in the second quarter valued at approximately $57,445,000. William Blair Investment Management LLC bought a new position in shares of Cabot during the second quarter valued at about $16,809,000. Finally, State Street Corp raised its holdings in shares of Cabot by 6.8% during the second quarter. State Street Corp now owns 2,165,434 shares of the specialty chemicals company’s stock valued at $196,665,000 after acquiring an additional 138,098 shares in the last quarter. Institutional investors own 93.18% of the company’s stock.

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.