BOSTON – Kalkstein Hobart, Executive Vice President at Cabot Corp (NYSE:CBT), recently executed a series of stock transactions involving the company's common stock.
On November 11, Hobart sold a total of 34,759 shares, generating approximately $4,005,182. The sales were completed at prices ranging from $115.0009 to $115.5442 per share, according to a Form 4 filing with the Securities and Exchange Commission.
In addition to the sales, Hobart acquired 20,568 shares through the exercise of stock options on the same day. These options were exercised at prices of $58.27 and $73.84 per share, translating to a total transaction value of $1,329,129.
Following these transactions, Hobart's direct ownership in Cabot Corp stands at 48,324 shares.
In other recent news, Cabot Corporation has been in the spotlight following a downgrade by JPMorgan from Neutral to Underweight, with a new price target set at $105. This decision was influenced by revised earnings per share (EPS) estimates for the years 2025 and 2026, with the 2025 estimate lowered from $7.80 to $7.75 and the 2026 projection from $8.60 to $8.40. The downgrade reflects concerns about demand within Cabot's Reinforcement Materials segment and challenges in the Americas and EMEA due to high tire import volumes from Asia.
On the financial front, Cabot Corporation reported a strong fiscal year with a 31% increase in adjusted EPS to $7.06 and a 15% rise in total segment EBIT to $701 million. The company's Reinforcement Materials and Performance Chemicals segments were significant contributors to these robust results. Cabot also highlighted its sustainability achievements and growth strategy in battery materials, responding to rising demand.
Looking ahead, Cabot anticipates a slight increase in the operating tax rate for fiscal 2025, but maintains a positive outlook with strong cash generation and execution of growth strategy. The company projects its revenue for fiscal year 2025 to be between $250 million and $300 million, with an adjusted EPS projected to be between $7.40 and $7.80. Despite some challenges, Cabot expects growth in both Reinforcement Materials and Performance Chemicals segments and anticipates volume growth and higher margins despite increased costs.
InvestingPro Insights
Cabot Corp's recent insider activity aligns with several key financial indicators and trends highlighted by InvestingPro. According to InvestingPro Tips, management has been aggressively buying back shares, indicating confidence in the company's future prospects. This buyback strategy complements the insider transactions we've observed, potentially signaling a positive outlook on the stock's value.
Moreover, Cabot Corp has demonstrated a strong commitment to shareholder returns. The company has maintained dividend payments for an impressive 54 consecutive years and has raised its dividend for 13 consecutive years. This consistent dividend policy, coupled with the high shareholder yield noted by InvestingPro, suggests that the company prioritizes returning value to its investors.
The stock's performance has been robust, with InvestingPro data showing a high return over the last year and a strong return over the last three months. This positive momentum is further supported by the fact that the stock is trading near its 52-week high, which may have influenced the timing of the insider's recent transactions.
It's worth noting that InvestingPro offers 14 additional tips for Cabot Corp, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable when interpreting insider activities and making informed investment decisions.
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