Diamond Hill Capital Management LLC Investment Advisor Takes Position in Freeport-McMoRan Inc. $FCX

Key Points

• Diamond Hill Capital Management initiated a position in Freeport-McMoRan during the second quarter, purchasing 564,714 shares valued at approximately $35.5 million. Institutional investors collectively own 80.77% of FCX.
• Analyst sentiment remains favorable: FCX has a consensus “Moderate Buy” rating and an average price target of $70.27, with recent upgrades and target increases from several firms.
• Freeport-McMoRan exceeded quarterly expectations, reporting $0.74 in adjusted earnings per share versus a $0.62 estimate and $7.03 billion in revenue. However, company insiders sold 26,600 shares worth about $1.8 million over the past three months.

Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of Freeport-McMoRan Inc. (NYSE:FCX - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 564,714 shares of the natural resource company's stock, valued at approximately $35,515,000.

A number of other large investors have also recently bought and sold shares of FCX. Strategic Investment Solutions Inc. IL acquired a new position in Freeport-McMoRan in the fourth quarter valued at $25,000. Steph & Co. boosted its stake in shares of Freeport-McMoRan by 43.7% during the first quarter. Steph & Co. now owns 493 shares of the natural resource company's stock worth $29,000 after buying an additional 150 shares during the period. Cassaday & Co Wealth Management LLC purchased a new position in shares of Freeport-McMoRan during the first quarter worth about $29,000. Kemnay Advisory Services Inc. purchased a new position in shares of Freeport-McMoRan during the fourth quarter worth about $29,000. Finally, SHP Wealth Management acquired a new position in Freeport-McMoRan in the 4th quarter valued at about $30,000. Institutional investors and hedge funds own 80.77% of the company's stock.

Insider Buying and Selling at Freeport-McMoRan

In other news, CAO Ellie L. Mikes sold 4,773 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $70.00, for a total value of $334,110.00. Following the completion of the transaction, the chief accounting officer owned 36,000 shares in the company, valued at $2,520,000. This trade represents a 11.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Stephen T. Higgins sold 14,277 shares of Freeport-McMoRan stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $69.50, for a total value of $992,251.50. Following the transaction, the chief accounting officer directly owned 54,618 shares of the company's stock, valued at $3,795,951. This trade represents a 20.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 26,600 shares of company stock worth $1,802,012 in the last three months. 0.73% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Weiss Ratings raised Freeport-McMoRan from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 31st. The Goldman Sachs Group lowered their target price on Freeport-McMoRan from $75.00 to $74.00 and set a "buy" rating on the stock in a research note on Wednesday, July 8th. BMO Capital Markets reissued an "outperform" rating and issued a $78.00 target price on shares of Freeport-McMoRan in a report on Thursday, July 23rd. HSBC upped their price target on Freeport-McMoRan from $72.00 to $75.00 in a research note on Friday, June 12th. Finally, Citigroup reaffirmed a "positive" rating on shares of Freeport-McMoRan in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Freeport-McMoRan currently has a consensus rating of "Moderate Buy" and an average target price of $70.27.

Freeport-McMoRan Price Performance

FCX stock opened at $66.48 on Monday. The firm has a 50 day moving average of $64.02 and a 200-day moving average of $63.17. The company has a market cap of $95.46 billion, a price-to-earnings ratio of 32.75, a PEG ratio of 0.66 and a beta of 1.37. The company has a current ratio of 2.07, a quick ratio of 0.92 and a debt-to-equity ratio of 0.25. Freeport-McMoRan Inc. has a 12-month low of $35.15 and a 12-month high of $72.28.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The natural resource company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.12. Freeport-McMoRan had a return on equity of 10.63% and a net margin of 11.39%.The business had revenue of $7.03 billion for the quarter, compared to analysts' expectations of $6.62 billion. During the same quarter in the prior year, the firm posted $0.54 EPS. The company's revenue was down 7.3% compared to the same quarter last year. As a group, equities analysts expect that Freeport-McMoRan Inc. will post 2.79 EPS for the current fiscal year.

Freeport-McMoRan Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Wednesday, July 15th were issued a $0.075 dividend. The ex-dividend date of this dividend was Wednesday, July 15th. This represents a $0.30 annualized dividend and a yield of 0.5%. Freeport-McMoRan's dividend payout ratio is 14.78%.

Freeport-McMoRan Profile

Freeport-McMoRan Inc is a U.S.-based natural resources company primarily engaged in the exploration, mining and processing of copper, gold and molybdenum. Its operations encompass large-scale open-pit and underground mining as well as associated concentrator and milling facilities. The company produces copper in the form of concentrates and cathodes, and also recovers gold and molybdenum as co-products; its business model includes exploration, development, mining, beneficiation and the sale of bulk commodities to smelters and industrial customers.

Freeport-McMoRan conducts operations and development activities across multiple geographies, with substantial assets in the Americas and Indonesia.

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