How to buy Cabot Corporation stock - 13 April

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How to buy Cabot Corporation stock

Own Cabot Corporation stock in just a few minutes.

Cabot Corporation is a specialty chemicals business based in the US. Cabot Corporation shares (CBT) are listed on the NYSE and all prices are listed in US Dollars. Cabot Corporation employs 4,500 staff and has a trailing 12-month revenue of around USD$2.6 billion.

How to buy shares in Cabot Corporation

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Cabot Corporation. Find the stock by name or ticker symbol: CBT. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Cabot Corporation reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Cabot Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Cabot Corporation. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Cabot Corporation share price

Use our graph to track the performance of CBT stocks over time.

Cabot Corporation shares at a glance

Information last updated 2021-04-08.
52-week rangeUSD$26.0726 - USD$54.9
50-day moving average USD$51.5689
200-day moving average USD$45.0029
Wall St. target priceUSD$57.6
PE ratio 39.3421
Dividend yield USD$1.4 (2.59%)
Earnings per share (TTM) USD$1.141

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Cabot Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Cabot Corporation under- or over-valued?

Valuing Cabot Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cabot Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cabot Corporation's P/E ratio

Cabot Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 39x. In other words, Cabot Corporation shares trade at around 39x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Cabot Corporation's PEG ratio

Cabot Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.83. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cabot Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Cabot Corporation's EBITDA

Cabot Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$418 million.

The EBITDA is a measure of a Cabot Corporation's overall financial performance and is widely used to measure a its profitability.

Cabot Corporation financials

Revenue TTM USD$2.6 billion
Operating margin TTM 9.91%
Gross profit TTM USD$506 million
Return on assets TTM 5.32%
Return on equity TTM -18.64%
Profit margin -8.32%
Book value $14.539
Market capitalisation USD$3 billion

TTM: trailing 12 months

Shorting Cabot Corporation shares

There are currently 705,411 Cabot Corporation shares held short by investors – that's known as Cabot Corporation's "short interest". This figure is 5.6% up from 668,137 last month.

There are a few different ways that this level of interest in shorting Cabot Corporation shares can be evaluated.

Cabot Corporation's "short interest ratio" (SIR)

Cabot Corporation's "short interest ratio" (SIR) is the quantity of Cabot Corporation shares currently shorted divided by the average quantity of Cabot Corporation shares traded daily (recently around 243245.17241379). Cabot Corporation's SIR currently stands at 2.9. In other words for every 100,000 Cabot Corporation shares traded daily on the market, roughly 2900 shares are currently held short.

However Cabot Corporation's short interest can also be evaluated against the total number of Cabot Corporation shares, or, against the total number of tradable Cabot Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Cabot Corporation's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Cabot Corporation shares in existence, roughly 10 shares are currently held short) or 0.0126% of the tradable shares (for every 100,000 tradable Cabot Corporation shares, roughly 13 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Cabot Corporation.

Find out more about how you can short Cabot Corporation stock.

Cabot Corporation share dividends

55%

Dividend payout ratio: 54.69% of net profits

Recently Cabot Corporation has paid out, on average, around 54.69% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.59% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cabot Corporation shareholders could enjoy a 2.59% return on their shares, in the form of dividend payments. In Cabot Corporation's case, that would currently equate to about $1.4 per share.

Cabot Corporation's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Cabot Corporation's most recent dividend payout was on 11 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 24 February 2021 (the "ex-dividend date").

Have Cabot Corporation's shares ever split?

Cabot Corporation's shares were split on a 2:1 basis on 24 March 1996. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cabot Corporation shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Cabot Corporation shares which in turn could have impacted Cabot Corporation's share price.

Cabot Corporation share price volatility

Over the last 12 months, Cabot Corporation's shares have ranged in value from as little as $26.0726 up to $54.9. A popular way to gauge a stock's volatility is its "beta".

CBT.US volatility(beta: 1.68)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Cabot Corporation's is 1.6834. This would suggest that Cabot Corporation's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Cabot Corporation overview

Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions. The company offers rubber grade carbon blacks used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites. It also provides specialty grades of carbon black used in inks, coatings, plastics, adhesives, toners, batteries, and displays applications; masterbatch and conductive compound products for use in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; inkjet colorants used in the inkjet printing applications; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; fumed alumina used in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries; and aerogel, a hydrophobic, silica-based particle for use in various thermal insulation and specialty chemical applications. In addition, the company offers activated carbon products used for the purification of water, air, food and beverages, pharmaceuticals, and other liquids and gases; and activated carbon solutions for activated carbon injection in coal-fired utilities, mobile water filter units, and carbon reactivation services. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

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