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.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 30, 2026 10:20 ET (15:20 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments