Empower Advisory Group Increases Stake in Albemarle to $54.31 Million

Empower Advisory Group LLC has expanded its investment in Albemarle Corporation (NYSE: ALB) by 11.4%, bringing its total holdings to approximately $54.31 million. According to the firm’s latest filing with the Securities and Exchange Commission, Empower now owns 866,575 shares of the specialty chemicals company, having acquired an additional 88,457 shares during the second quarter of 2023. This represents about 0.74% of Albemarle’s total stock.

Several other institutional investors have also adjusted their positions in Albemarle. Notably, Hantz Financial Services Inc. dramatically increased its stake by 10,050%, now holding 406 shares valued at around $25,000 after purchasing an additional 402 shares. The National Pension Service raised its stake by 74.5% in the first quarter, acquiring 452 shares worth $33,000. Meanwhile, CVA Family Office LLC increased its position significantly by 7,257.1%, owning 515 shares valued at $32,000 after purchasing an additional 508 shares.

Overall, institutional investors and hedge funds control approximately 92.87% of Albemarle’s stock, indicating strong confidence in the company’s future.

Market Reactions and Analyst Ratings

In recent weeks, various research firms have issued their evaluations of Albemarle’s stock. Rothschild & Co Redburn initiated coverage on October 24, 2023, with a “buy” rating and a target price of $135.00. Conversely, Robert W. Baird raised its price objective from $68.00 to $81.00, assigning an “underperform” rating. Other notable analysts include JPMorgan Chase & Co., which increased its target price from $60.00 to $80.00 while maintaining a “neutral” rating.

Currently, one equity research analyst rates the stock as a Strong Buy, five analysts have a Buy rating, sixteen have assigned a Hold rating, and five have given a Sell rating. According to MarketBeat, the average rating for Albemarle’s stock stands at “Hold,” with a consensus target price of $99.38.

Albemarle’s Financial Performance

On November 5, 2023, Albemarle Corporation released its quarterly earnings data, revealing a loss of $0.19 earnings per share (EPS), which surpassed analysts’ consensus estimates of a loss of $0.92 by $0.73. Despite this positive surprise, the company reported a negative net margin of 18.61% and a negative return on equity of 1.87%. The quarterly revenue was reported at $1.31 billion, exceeding the consensus estimate of $1.27 billion, although this figure represents a 3.5% decline compared to the same quarter last year.

Analysts predict a challenging year ahead, forecasting an EPS of -0.04 for the current fiscal year.

In addition to its financial results, Albemarle has declared a quarterly dividend of $0.405 per share, scheduled for payment on January 2, 2024. Shareholders of record on December 12, 2023, will receive this dividend, reflecting an annualized dividend yield of 1.4%. Notably, the company’s payout ratio stands at -101.89%, indicating that it is currently unable to sustain its dividend payments from earnings.

Albemarle Corporation, headquartered in the United States, specializes in developing, manufacturing, and marketing engineered specialty chemicals. The company operates through three segments: Energy Storage, Specialties, and Ketjen, with a notable focus on lithium compounds essential for energy storage applications.

As Albemarle continues to navigate a complex market, the investment community is closely watching its performance and strategic decisions, particularly in the rapidly evolving specialty chemicals sector.