Cabot CEO Sells $9.1M Worth of Stock Amid Challenging Demand Environment

Cabot Corporation's CEO Sean Keohane recently sold 114,436 shares of the company's stock for $9.07 million. The company reported Q3 fiscal 2025 earnings with a diluted EPS of $1.86 and an adjusted EPS of $1.90, slightly down from last year. Despite a challenging demand environment, Cabot maintained strong financial performance and reaffirmed its adjusted EPS guidance for fiscal 2025. The company's stock has a moderate beta and is considered a strong performer by TipRanks' AI Analyst.

Cabot Corporation's (CBT) President and CEO, Sean D. Keohane, recently sold 114,436 shares of the company's stock, totaling $9,072,094, according to a recent SEC filing [1]. The transactions were executed at varying prices, with a weighted average of $79.155 per share. Following these sales, Keohane owns 361,518 shares directly and 13,842 shares indirectly through the company's 401(k) plan.

The company also reported its Q3 fiscal 2025 earnings, with a diluted EPS of $1.86, down from the year-ago quarter's $1.94, and an adjusted EPS of $1.90, down from the year-ago quarter's $1.92. Despite the slight decline, adjusted earnings beat the Zacks Consensus Estimate of $1.80 [2].

Cabot's net sales for the quarter were $923 million, down 9.2% from the prior-year quarter, missing the Zacks Consensus Estimate of $962.3 million. The company's Reinforcement Materials segment saw a 11.7% decrease in sales, while the Performance Chemicals division experienced a 3.6% decline. The company ended the quarter with a cash balance of $239 million and generated $249 million in cash flows from operating activities. Capital expenditures totaled $61 million, and the company used cash to pay dividends of $24 million and repurchase $40 million in shares.

Despite the challenging demand environment, Cabot maintained strong financial performance and reaffirmed its adjusted EPS guidance for fiscal 2025, noting that ongoing uncertainty around tariffs and the global economy is dampening customer demand. The company remains focused on cost reductions, operational optimization, and disciplined execution, supported by a solid balance sheet that enables investment in growth initiatives and shareholder returns.

The company's stock has a moderate beta and is considered a strong performer by TipRanks' AI Analyst. Shares of Cabot have lost 18.1% in the past year compared to a 24.4% decline of the industry [2].

References:
[1] https://www.tradingview.com/news/tradingview:ae8c4679b20ba:0-cabot-corp-ceo-sean-d-keohane-sells-over-9-million-in-company-stock/
[2] https://finance.yahoo.com/news/cabots-earnings-top-estimates-q3-120300308.html