Freeport-McMoRan (NYSE:FCX) Shares Down 3.6% - Here's Why

Key Points

• Shares fell 3.6% intraday to about $67.64 on lighter-than-average volume (16.99M vs. a 19.88M average), even as several firms raised price targets; MarketBeat's consensus rating is a Moderate Buy with a $66.26 target.
• Freeport-McMoRan beat quarterly estimates (EPS $0.47 vs. $0.28 est.; revenue $5.63B vs. $5.42B), announced a quarterly dividend of $0.075 (0.4% yield) and currently trades at a P/E of 44.79.
• Insiders have been net sellers recently (565,145 shares sold in the last 90 days, including sales by the CAO and chairman), while institutional ownership remains high at 80.77%.

Shares of Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) fell 3.6% during mid-day trading on Tuesday . The company traded as low as $67.46 and last traded at $67.6350. 16,987,697 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 19,877,430 shares. The stock had previously closed at $70.18.

Wall Street Analyst Weigh In

FCX has been the topic of a number of recent research reports. Freedom Capital upgraded shares of Freeport-McMoRan from a "hold" rating to a "strong-buy" rating in a report on Saturday, February 21st. JPMorgan Chase & Co. raised their price target on shares of Freeport-McMoRan from $68.00 to $76.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. BMO Capital Markets raised their price target on shares of Freeport-McMoRan from $55.00 to $68.00 and gave the company an "outperform" rating in a report on Wednesday, January 14th. Citigroup raised their price target on shares of Freeport-McMoRan from $48.00 to $67.00 and gave the company a "buy" rating in a report on Monday, January 12th. Finally, Deutsche Bank Aktiengesellschaft raised their price target on shares of Freeport-McMoRan from $58.00 to $72.00 and gave the company a "buy" rating in a report on Wednesday, April 15th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $66.26.

Freeport-McMoRan Stock Down 3.6%

The business's 50 day moving average is $62.33 and its 200-day moving average is $53.27. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.05 and a current ratio of 2.29. The firm has a market capitalization of $97.21 billion, a price-to-earnings ratio of 44.79, a price-to-earnings-growth ratio of 0.80 and a beta of 1.48.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last posted its earnings results on Thursday, January 22nd. The natural resource company reported $0.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.19. Freeport-McMoRan had a net margin of 8.50% and a return on equity of 8.50%. The business had revenue of $5.63 billion for the quarter, compared to analyst estimates of $5.42 billion. During the same period last year, the business posted $0.31 EPS. Freeport-McMoRan's revenue was down 1.5% compared to the same quarter last year. Equities analysts anticipate that Freeport-McMoRan Inc. will post 2.55 EPS for the current fiscal year.

Freeport-McMoRan Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Wednesday, April 15th will be paid a $0.075 dividend. The ex-dividend date is Wednesday, April 15th. This represents a $0.30 dividend on an annualized basis and a yield of 0.4%. Freeport-McMoRan's dividend payout ratio (DPR) is presently 19.87%.

Insiders Place Their Bets

In other Freeport-McMoRan news, CAO Stephen T. Higgins sold 29,654 shares of the firm's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $63.00, for a total value of $1,868,202.00. Following the sale, the chief accounting officer directly owned 76,445 shares in the company, valued at $4,816,035. This trade represents a 27.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Chairman Richard C. Adkerson sold 248,031 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $62.80, for a total transaction of $15,576,346.80. Following the completion of the sale, the chairman owned 3,509,119 shares in the company, valued at $220,372,673.20. This represents a 6.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 565,145 shares of company stock worth $35,839,918 in the last ninety days. 0.79% of the stock is owned by insiders.

Institutional Trading of Freeport-McMoRan

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Steph & Co. grew its position in Freeport-McMoRan by 43.7% in the 1st quarter. Steph & Co. now owns 493 shares of the natural resource company's stock worth $29,000 after purchasing an additional 150 shares during the last quarter. Essex Bank grew its position in Freeport-McMoRan by 1.2% in the 1st quarter. Essex Bank now owns 14,104 shares of the natural resource company's stock worth $829,000 after purchasing an additional 163 shares during the last quarter. Leo Wealth LLC grew its position in Freeport-McMoRan by 2.5% in the 4th quarter. Leo Wealth LLC now owns 6,838 shares of the natural resource company's stock worth $347,000 after purchasing an additional 170 shares during the last quarter. Physician Wealth Advisors Inc. grew its position in Freeport-McMoRan by 23.5% in the 4th quarter. Physician Wealth Advisors Inc. now owns 924 shares of the natural resource company's stock worth $47,000 after purchasing an additional 176 shares during the last quarter. Finally, Castle Rock Wealth Management LLC grew its position in Freeport-McMoRan by 3.3% in the 4th quarter. Castle Rock Wealth Management LLC now owns 5,687 shares of the natural resource company's stock worth $289,000 after purchasing an additional 180 shares during the last quarter. 80.77% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.