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Sean D. Keohane, the President and CEO of Cabot Corp (NYSE:CBT), recently sold a significant portion of his company stock, totaling over $2.6 million. The transactions occurred on September 3, as indicated by the latest filings.
Keohane disposed of 17,865 shares at an average price of approximately $101.23 and 7,752 shares at an average price of around $102.28. The total value of the shares sold by Keohane amounts to $2,601,368. The sales were executed in multiple transactions with prices ranging from $100.82 to $101.81 for the first set of shares and $101.82 to $102.65 for the second set.
On the same day, Keohane also acquired 25,617 shares of common stock at a price of $39.54 per share, which sums up to a total transaction value of $1,012,896. This transaction corresponds to an option exercise, as detailed in the footnotes of the filing.
Following these transactions, Keohane's direct ownership in Cabot Corp stands at 331,174 shares. Additionally, he has an indirect ownership through a trust for the corporation's 401(k) plan, which holds 13,561.02 shares of common stock.
Investors often monitor insider buying and selling as it can provide insights into a company's financial health and future prospects. The recent sale by Cabot Corp's CEO may attract attention from the investment community, as it represents a notable change in his stake in the company.
In other recent news, Cabot Corp has been the focus of several noteworthy developments. Deutsche Bank has reiterated a Hold rating on shares of Cabot Corp, following the company's fiscal third-quarter earnings release. The company's third-quarter earnings exceeded expectations by 10%, with a significant rise in earnings before interest and taxes (EBIT), particularly in the Performance Chemicals segment. The EBIT for this segment saw a remarkable 72% year-over-year increase and a 77% quarter-over-quarter increase.
Additionally, Cabot Corp's fiscal fourth-quarter EPS guidance midpoint surpassed consensus estimates by 5%. The company's Reinforcement Materials segment also showed strong performance due to favorable pricing and product mix, as well as higher volumes in Asia and Europe. Looking ahead, Cabot Corp remains optimistic about the Reinforcement Materials market, bolstered by the upcoming ban on Belarusian carbon black exports and the resilience of the tire replacement market.
In other recent developments, Cabot Corporation reported an impressive 35% year-over-year increase in its adjusted earnings per share (EPS) for the third quarter of fiscal year 2024. The company has also raised its full-year adjusted EPS outlook to $7 to $7.10, up from the prior $6.65 to $6.85 range, reflecting strong commercial and operational execution. Despite economic uncertainties, Cabot anticipates continued strong demand in key markets and aims to generate over $1 billion in cumulative discretionary free cash flow between fiscal years 2022 and 2024.
InvestingPro Insights
As investors digest the news of Sean D. Keohane's recent transactions in Cabot Corp (NYSE:CBT) stock, it's valuable to consider the broader financial context of the company, as provided by real-time data from InvestingPro.
InvestingPro Data points to a strong financial position for Cabot Corp. The company's market cap stands at $5.53 billion USD, indicating a sizable presence in its sector. With a P/E ratio of 11.9 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 11.58, the company is trading at a relatively low multiple relative to near-term earnings growth. Furthermore, the PEG ratio during the same period is 0.2, suggesting potential for growth at a reasonable price.
In terms of returns, Cabot Corp has experienced a robust 39.05% one-year price total return as of the date provided, reflecting strong performance in the market. This is complemented by a dividend yield of 1.7%, and notably, the company has raised its dividend for 12 consecutive years, a testament to its commitment to shareholder returns. The company's dividend growth over the last twelve months as of Q3 2024 stands at 7.5%.
InvestingPro Tips also highlight that Cabot Corp has maintained dividend payments for an impressive 54 consecutive years, underscoring its reliability for income-focused investors. Moreover, the company's management has been actively involved in share buybacks, which can often be a sign of confidence in the company's value and future prospects.
For those seeking more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/CBT. These tips can provide further depth into Cabot Corp's financial health and investment potential.
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