Outlook Capital Management LLC Purchases New Stake in Freeport-McMoRan Inc. $FCX

Key Points

• Outlook Capital Management acquired 293,428 shares of Freeport-McMoRan in the second quarter, valued at approximately $18.45 million and representing 6% of its portfolio. Institutional investors and hedge funds collectively own 80.77% of FCX.
• Analysts remain broadly bullish, with an average “Moderate Buy” rating and a $70.27 price target; recent targets range as high as $82.
• Freeport-McMoRan exceeded quarterly expectations with earnings of $0.74 per share and revenue of $7.03 billion, while paying a quarterly dividend of $0.075 per share.

Outlook Capital Management LLC acquired a new position in shares of Freeport-McMoRan Inc. (NYSE:FCX - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 293,428 shares of the natural resource company's stock, valued at approximately $18,454,000. Freeport-McMoRan accounts for 6.0% of Outlook Capital Management LLC's investment portfolio, making the stock its 3rd biggest holding.

A number of other large investors have also recently bought and sold shares of the company. Pinnacle Bancorp Inc. lifted its holdings in shares of Freeport-McMoRan by 7.9% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,011 shares of the natural resource company's stock worth $118,000 after acquiring an additional 147 shares during the period. Steph & Co. boosted its position in shares of Freeport-McMoRan by 43.7% during the 1st quarter. Steph & Co. now owns 493 shares of the natural resource company's stock worth $29,000 after acquiring an additional 150 shares in the last quarter. Richardson Financial Services Inc. increased its stake in Freeport-McMoRan by 11.6% in the second quarter. Richardson Financial Services Inc. now owns 1,539 shares of the natural resource company's stock valued at $97,000 after acquiring an additional 160 shares during the last quarter. Essex Bank increased its stake in Freeport-McMoRan by 1.2% in the first quarter. Essex Bank now owns 14,104 shares of the natural resource company's stock valued at $829,000 after acquiring an additional 163 shares during the last quarter. Finally, Fiduciary Financial Group LLC raised its position in Freeport-McMoRan by 2.6% during the second quarter. Fiduciary Financial Group LLC now owns 6,788 shares of the natural resource company's stock valued at $427,000 after purchasing an additional 173 shares in the last quarter. 80.77% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have weighed in on FCX. UBS Group upped their target price on Freeport-McMoRan from $75.00 to $77.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. HSBC lifted their price target on Freeport-McMoRan from $72.00 to $75.00 in a research note on Friday, June 12th. BNP Paribas Exane boosted their price target on Freeport-McMoRan from $71.00 to $82.00 and gave the stock an "outperform" rating in a report on Thursday, June 18th. Barclays upped their price objective on Freeport-McMoRan from $80.00 to $82.00 and gave the stock an "overweight" rating in a research report on Monday, July 27th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and issued a $78.00 price objective on shares of Freeport-McMoRan in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $70.27.

Insider Transactions at Freeport-McMoRan

In other news, CAO Ellie Mikes sold 4,773 shares of Freeport-McMoRan stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $70.00, for a total transaction of $334,110.00. Following the sale, the chief accounting officer directly owned 36,000 shares of the company's stock, valued at approximately $2,520,000. This trade represents a 11.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Stephen Higgins sold 14,277 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $69.50, for a total value of $992,251.50. Following the sale, the chief accounting officer owned 54,618 shares in the company, valued at approximately $3,795,951. This trade represents a 20.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 110,398 shares of company stock valued at $8,387,271. Company insiders own 0.73% of the company's stock.

Freeport-McMoRan Stock Performance

NYSE FCX opened at $72.66 on Friday. The firm's fifty day moving average price is $66.40 and its two-hundred day moving average price is $64.37. The stock has a market cap of $104.34 billion, a PE ratio of 35.79, a PEG ratio of 0.71 and a beta of 1.41. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.92 and a current ratio of 2.07. Freeport-McMoRan Inc. has a fifty-two week low of $35.15 and a fifty-two week high of $80.24.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The natural resource company reported $0.74 EPS for the quarter, beating 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 company had revenue of $7.03 billion during the quarter, compared to analysts' expectations of $6.62 billion. During the same period in the prior year, the company earned $0.54 EPS. Freeport-McMoRan's revenue was down 7.3% compared to the same quarter last year. On average, equities analysts expect that Freeport-McMoRan Inc. will post 2.81 EPS for the current fiscal year.

Freeport-McMoRan Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Wednesday, July 15th were given a $0.075 dividend. The ex-dividend date was Wednesday, July 15th. This represents a $0.30 annualized dividend and a yield of 0.4%. Freeport-McMoRan's dividend payout ratio (DPR) is currently 14.78%.

Freeport-McMoRan Company 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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