Is Cabot Corporation (CBT) Stock Cheap Or Risky?

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As of Wednesday close, Cabot Corporation’s (NYSE:CBT) stock was up $0.12, moving up 0.16 percent to $73.80. The average number of shares traded per day over the past five days has been 313,540 shares. 4 times new highs have been achieved over the past 5 days, with a $2.26 gain in that time frame. In the last twenty days, the average volume was 346,860, while in the previous 50 days, it was 376,758.

Since last month, CBT stock rose 3.09%. Shares of the company fell to $65.26 on 11/09/22, the lowest level in the past month. A 52-week high of $78.62 was reached on 05/31/22 after having rallying from a 52-week low of $50.96. Since the beginning of this year, CBT’s stock price has risen by 31.32% or $17.60, and marked a new high 15 times. However, the stock has declined by -6.13% since its 52-week high.


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CBT stock investors should be aware that Cabot Corporation (CBT) stock had its last reported insider trading activity 171 days ago on Jun 06. Kalita Karen A, the SVP and General Counsel of the company, disposed of 4,575 shares for $78.13 on Jun 06. It resulted in a $357,449 divestment by the insider. Kalkstein Hobart sold 17,235 shares at an average price of $77.86 on Jun 02. The insider now owns 52,785 shares following the transaction. On May 31, Senior Vice President, CFO McLaughlin Erica sold 9,122 shares at $76.91 apiece. The transaction was valued at $701,580.

Valuation Metrics

Right now, Cabot Corporation (CBT) has a P/E ratio of about 20.40. The stock’s beta is 1.39. Besides these, the trailing price-to-sales (P/S) ratio of 0.94, the price-to-book (PB) ratio of 4.64.

The latest dividend of $0.37 per share was paid out, remained unchanged from last year’s $0.37. On Friday November 12 2021, a $0.02 dividend increase was announced.

Financial Health

In the three months ended June 29, Cabot Corporation’s quick ratio stood at 1.10, while its current ratio was 1.70, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 1.23, and the total debt-to-equity ratio was 1.58. On the profitability front, the trailing twelve-month gross margin is 20.50% percent. In the year ended June 29, operating margins totaled 6.60%. Based on annual data, CBT earned $885.0 million in gross profit and brought in $4.32 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 15.60%. Return on equity (ROE) for the past 12 months was 14.70%.

In Cabot Corporation’s quarter-end financial report for June 29, it reported total debt of $1.1 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. CBT’s revenue rose 20.19% to $1.09 billion during the quarter, while net income inched up to $1.15 billion. While analysts expected Cabot Corporation to report $1.56 quarterly earnings, the actual figure was $1.73 per share, beating the consensus estimate by 10.90%. The liabilities of Cabot Corporation were 2.49 billion at the end of its most recent quarter ended June 29, and its total debt was $1.41 billion.

Technical Picture

This quick technical analysis looks at Cabot Corporation’s (CBT) price momentum. With a historical volatility rate of 25.32%, the RSI 9-day stood at 57.02% on 23 November.

With respect to its five-day moving average, the current Cabot Corporation price is up by +3.16% percent or $2.26. At present, CBT shares trade +2.49% above its 20-day simple moving average and +16.83% percent above its 100-day simple moving average. However, the stock is currently trading approximately +0.34% above its SMA50 and +8.18% above its SMA200.

Stochastic coefficient K was 62.14% and Stochastic coefficient D was 56.64%, while ATR was 2.68. Given the Stochastic reading of 68.59% for the 14-day period, the RSI (14) reading has been calculated as 55.64%. As of today, the MACD Oscillator reading stands at 0.45, while the 14-day reading stands at 0.64.

Analyst Ratings

Deutsche Bank upgraded its rating on Cabot Corporation (NYSE: CBT) to a Buy in a note to investors on November 16, 2022. The analysts firm previously had a Hold rating on the stock.Cabot Corporation (CBT) has been rated Buy by analysts. According to 0 brokerage firms, CBT is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Cabot Corporation stock as buy, with 5 recommending it as overweight.

With a median target price of $87.00, the current consensus forecast for the stock is $80.00 – $98.00. Based on these forecasts, analysts predict Cabot Corporation (CBT) will achieve an average price target of $87.20.

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