Albemarle Shares Maintain Momentum as Lithium Sector Rebounds

Albemarle Corporation's equity continues its significant upward trajectory, marking another robust trading session fueled by heightened options activity and improving sentiment regarding lithium demand. The specialty chemicals producer appears to have decisively turned a corner following a prolonged period of market challenges.

The current rally represents a notable reversal in fortune. After facing structural headwinds from lithium oversupply and volatile electric vehicle adoption rates throughout 2024 and 2025, market conditions are now stabilizing. Global lithium prices are finding a floor, while inventory levels are declining. Underpinning this shift is sustained demand, projected to grow by over 30% this year. This growth is driven not solely by electric vehicles but also by a parallel boom in grid-scale battery storage installations.

The company itself has contributed to its recovery through strategic restructuring. The sale of a controlling stake in its catalyst business, Ketjen, is expected to generate approximately $660 million in proceeds. Coupled with a sharp 65% reduction in capital expenditures compared to the prior year, these moves have substantially strengthened the balance sheet. Investors are rewarding this leaner operational model and the return to profitability.

Should investors sell immediately? Or is it worth buying Albemarle?

Speculative Interest and Analyst Upgrades Converge

The recent surge in the stock is supported by clear market activity. On Monday, trading volume for call options on Albemarle shares skyrocketed to 177% above the average. Approximately 58,000 of these bullish contracts were purchased, signaling strong speculative belief in a continued advance. This options activity coincided with equity trading volume exceeding 1.2 million shares, highlighting substantial institutional interest.

This optimism is echoed by research firms on Wall Street. Investment bank Jefferies raised its price target for Albemarle on Tuesday, citing a brighter outlook for lithium demand and a tightening supply-demand balance projected for 2026. Jefferies joins other major institutions, including Morgan Stanley, UBS, and Citigroup, which have also recently revised their valuations for the company upward.

Upcoming Quarterly Report in Focus

The next critical milestone for Albemarle is scheduled for February 11, 2026, when the company is anticipated to release its quarterly earnings. Market experts are forecasting an adjusted loss per share of -$0.61. While this remains in negative territory, it would represent a substantial 44% improvement compared to the same period last year. Revenue is expected to rise by 11% to around $1.37 billion. From a technical analysis perspective, the stock is already trading well above its key long-term moving averages, providing further confirmation of the trend reversal.