Cabot Corporation (NYSE:CBT – Get Free Report) traded up 8.2% on Wednesday following a stronger than expected earnings report. The company traded as high as $77.50 and last traded at $77.1020. 40,603 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 450,072 shares. The stock had previously closed at $71.29.
The specialty chemicals company reported $1.53 EPS for the quarter, beating the consensus estimate of $1.40 by $0.13. The firm had revenue of $849.00 million for the quarter, compared to the consensus estimate of $889.11 million. Cabot had a net margin of 8.91% and a return on equity of 24.55%. The company’s quarterly revenue was down 11.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.76 earnings per share. Cabot has set its FY 2026 guidance at 6.000-6.500 EPS.
Cabot Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be given a dividend of $0.45 per share. The ex-dividend date is Friday, February 27th. This represents a $1.80 annualized dividend and a yield of 2.3%. Cabot’s dividend payout ratio (DPR) is presently 29.95%.
Key Headlines Impacting Cabot
- Positive Sentiment: Q1 adjusted EPS topped expectations — Adjusted EPS of $1.53 beat the consensus/Street estimates and showed the company is still profitable despite softer volumes. Cabot (CBT) Q1 Earnings Surpass Estimates
- Positive Sentiment: Multi‑year supply agreement with PowerCo SE strengthens Cabot’s Battery Materials growth narrative — a structural growth market (EV batteries) that supports longer‑term upside. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results
- Positive Sentiment: Strong cash generation enabled $76M returned to shareholders this quarter (dividends + buybacks) and the Board declared a $0.45 quarterly dividend (2.5% yield), supporting income-focused investors. Cabot Corporation Board Declares Dividend
- Neutral Sentiment: Third‑party bullish writeups and community bull-case theses highlight valuation upside and the battery-materials story but are speculative and not new company guidance. Cabot Corporation (CBT): A bull case theory (MSN) Cabot Corporation (CBT): A Bull Case Theory (InsiderMonkey)
- Neutral Sentiment: Analyst coverage is mixed with targets clustered near the current price (median ~$74), so street revision risk is moderate but not one‑sided. Cabot Corporation (CBT) Stock Falls on Q1 2026 Earnings (QuiverQuant)
- Negative Sentiment: Top-line miss and weaker volumes — Q1 revenue fell to $849M (down ~11% YoY) and missed estimates, signaling demand softness in key end markets (tires/industrial). Cabot Corporation (CBT) Stock Falls on Q1 2026 Earnings (QuiverQuant)
- Negative Sentiment: Guidance trimmed/narrowed below consensus — FY‑2026 adjusted EPS outlook was set to $6.00–$6.50 vs. the Street ~6.53, which reduces near‑term upside and increases execution scrutiny. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results
- Negative Sentiment: Segment and profitability pressure — Reinforcement Materials EBIT declined ~22% YoY (lower volumes), and adjusted EPS fell ~13% YoY, raising concerns about cyclical exposure and margin headwinds. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results
- Negative Sentiment: Recent insider selling (including CEO sales reported) can be viewed negatively by some investors as a signal to monitor. Cabot Corporation (CBT) Stock Falls on Q1 2026 Earnings (QuiverQuant)
Analyst Upgrades and Downgrades
CBT has been the subject of a number of analyst reports. JPMorgan Chase & Co. dropped their price target on Cabot from $75.00 to $54.00 and set an “underweight” rating for the company in a research note on Friday, November 28th. Mizuho boosted their target price on shares of Cabot from $72.00 to $80.00 and gave the company an “outperform” rating in a research report on Thursday, December 18th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Cabot in a research report on Monday, December 29th. Zacks Research upgraded shares of Cabot from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 27th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $81.00 target price on shares of Cabot in a report on Thursday, January 8th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $72.25.
View Our Latest Research Report on Cabot
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its holdings in Cabot by 2,559.5% during the 1st quarter. NewEdge Advisors LLC now owns 984 shares of the specialty chemicals company’s stock worth $82,000 after acquiring an additional 947 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Cabot by 32.5% in the first quarter. Goldman Sachs Group Inc. now owns 442,646 shares of the specialty chemicals company’s stock worth $36,802,000 after purchasing an additional 108,645 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Cabot by 102.6% in the first quarter. Empowered Funds LLC now owns 28,162 shares of the specialty chemicals company’s stock worth $2,341,000 after purchasing an additional 14,260 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Cabot by 3.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 122,022 shares of the specialty chemicals company’s stock valued at $10,145,000 after purchasing an additional 4,048 shares during the period. Finally, Geneos Wealth Management Inc. raised its position in Cabot by 409.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 453 shares of the specialty chemicals company’s stock worth $38,000 after purchasing an additional 364 shares during the last quarter. Institutional investors own 93.18% of the company’s stock.
Cabot Price Performance
The company has a fifty day simple moving average of $68.50 and a 200 day simple moving average of $71.61. The stock has a market capitalization of $4.15 billion, a price-to-earnings ratio of 13.07, a P/E/G ratio of 3.82 and a beta of 0.88. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.08 and a current ratio of 1.61.
Cabot Company Profile
Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. Founded in 1882 by Godfrey Lowell Cabot, the company has grown into a diversified manufacturer with operations across North America, Europe, Asia and Latin America. Cabot serves a wide range of end markets, including automotive, industrial, energy, and consumer products, supplying essential ingredients that enhance performance, durability and functionality.
The company operates two primary segments: Reinforcement Materials and Performance Materials.
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