Dj Albemarle Corp. Stock Sheds 5.6%, Underperforms Peers

Al Root

Albemarle stock plunged Friday, even though there appeared to be little news that would affect the lithium miner's business.

The best explanation is that investors are a little nervous about the price of lithium, while Albemarle stock has been superstrong.

Shares of the miner were down 8% at $166.22, while the S&P 500 and Dow Jones Industrial Average were down 0.4% and 0.1%, respectively.

Coming into Friday trading, Albemarle stock was up 28% year to date, 85% over the past three months, and 162% over the past six months. It is easy to see why.

Over the past few months, benchmark lithium prices have gone from roughly $9,000 per metric ton to $26,000. The surge was driven by lower inventories, lower production, and improving demand for lithium products, partly for energy storage.

Gains have led to Wall Street ratings upgrades, price-target hikes, and increases in analysts' forecast for earnings. Now, almost half of the analysts covering Albemarle stock rate shares Buy, up from 30% six months ago. The average target for the stock price has gone to about $178 from $76 over that span. Analysts now project 2026 earnings per share of about $4.50, up from a 4-cent loss six months ago.

The twist is that lithium prices have recently fallen back to about $23,000 a ton. That small break in the price's ascent could have investors taking profits.

Write to Al Root at allen.root@barrons.com.

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