Cabot Microelectronics (NASDAQ:CCMP) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research cut shares of Cabot Microelectronics (NASDAQ:CCMP) from a hold rating to a sell rating in a research note published on Wednesday, Zacks.com reports.

According to Zacks, “Cabot Microelectronics Corporation is the leading supplier of CMP slurries for polishing various materials used in semiconductor manufacturing processes. The company’s products play a critical role in the production of the most advanced semiconductor devices, enabling the manufacture of smaller, faster and more complex devices by its customers. Cabot Microelectronics has demonstrated consistent, steady growth and is the leader in the CMP Industry, as well as part of the dynamic, high-growth Consumer Electronics Industry, enabling the manufacture of leading edge devices in on of the most innovative industries in the world. “

Other equities research analysts have also recently issued research reports about the stock. BidaskClub cut shares of Cabot Microelectronics from a buy rating to a hold rating in a research report on Saturday, August 3rd. Seaport Global Securities reissued a buy rating on shares of Cabot Microelectronics in a research note on Wednesday, August 7th. Goldman Sachs Group assumed coverage on shares of Cabot Microelectronics in a research note on Monday, July 8th. They issued a buy rating and a $148.00 price target on the stock. Finally, CL King started coverage on shares of Cabot Microelectronics in a research note on Monday, July 8th. They issued a buy rating and a $125.00 price target on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $129.20.

Cabot Microelectronics stock traded up $0.65 during mid-day trading on Wednesday, reaching $118.39. The company had a trading volume of 48,129 shares, compared to its average volume of 214,251. The company has a current ratio of 3.06, a quick ratio of 2.12 and a debt-to-equity ratio of 0.91. Cabot Microelectronics has a 52 week low of $82.24 and a 52 week high of $129.94. The stock’s 50 day simple moving average is $114.25. The stock has a market cap of $3.44 billion, a price-to-earnings ratio of 22.68 and a beta of 1.39.

Cabot Microelectronics (NASDAQ:CCMP) last issued its quarterly earnings results on Wednesday, August 7th. The semiconductor company reported $1.59 earnings per share for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.01). The company had revenue of $271.88 million during the quarter, compared to the consensus estimate of $266.80 million. Cabot Microelectronics had a net margin of 11.76% and a return on equity of 19.78%. On average, equities research analysts predict that Cabot Microelectronics will post 6.78 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 30th. Stockholders of record on Tuesday, June 25th were paid a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.42%. The ex-dividend date was Monday, June 24th. Cabot Microelectronics’s dividend payout ratio is currently 32.18%.

In other news, insider David H. Li sold 27,425 shares of the firm’s stock in a transaction on Monday, August 12th. The stock was sold at an average price of $114.28, for a total transaction of $3,134,129.00. Following the completion of the sale, the insider now directly owns 78,683 shares of the company’s stock, valued at approximately $8,991,893.24. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Daniel D. Woodland sold 3,137 shares of the firm’s stock in a transaction on Monday, August 12th. The shares were sold at an average price of $114.11, for a total value of $357,963.07. Following the sale, the vice president now directly owns 15,422 shares of the company’s stock, valued at $1,759,804.42. The disclosure for this sale can be found here. Insiders have sold a total of 33,562 shares of company stock valued at $3,816,932 in the last three months. Insiders own 2.20% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. Nuveen Asset Management LLC bought a new stake in Cabot Microelectronics in the second quarter worth $25,503,000. Victory Capital Management Inc. lifted its holdings in Cabot Microelectronics by 151.1% in the second quarter. Victory Capital Management Inc. now owns 477,276 shares of the semiconductor company’s stock valued at $52,539,000 after acquiring an additional 287,168 shares during the period. UBS Asset Management Americas Inc. lifted its holdings in Cabot Microelectronics by 6.4% in the second quarter. UBS Asset Management Americas Inc. now owns 23,867 shares of the semiconductor company’s stock valued at $2,627,000 after acquiring an additional 1,427 shares during the period. Jane Street Group LLC lifted its holdings in Cabot Microelectronics by 147.1% in the second quarter. Jane Street Group LLC now owns 11,146 shares of the semiconductor company’s stock valued at $1,227,000 after acquiring an additional 6,636 shares during the period. Finally, Cubist Systematic Strategies LLC increased its position in Cabot Microelectronics by 186.6% in the second quarter. Cubist Systematic Strategies LLC now owns 10,445 shares of the semiconductor company’s stock worth $1,150,000 after buying an additional 6,801 shares in the last quarter. 98.60% of the stock is owned by hedge funds and other institutional investors.

About Cabot Microelectronics

Cabot Microelectronics Corp. engages in the development, manufacture, and sale of chemical mechanical planarization consumables products. The firm offers chemical mechanical planarization slurries for polishing many of the conducting, insulating and isolating materials used in integrated circuit devices, and for polishing the disk substrates and magnetic heads used in hard disk drives.

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