Freeport-McMoRan (NYSE:FCX) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down after Q1 results: EPS was $0.57 versus a $0.66 consensus and revenue came in at $6.23B vs. $6.40B, with the stock opening around $62.27 after a $70.36 close.
• Management declared a quarterly dividend of $0.075 (0.5% yield) and revenue rose 8.8% year‑over‑year, but production hits at the Grasberg operation and notable insider selling are key near‑term risks.
• Despite the miss, several analysts raised price targets and the consensus rating is a “Moderate Buy” with a $66.26 target, helping underpin the recovery narrative.

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $70.36, but opened at $62.27. Freeport-McMoRan shares last traded at $61.9340, with a volume of 7,154,592 shares trading hands.

The natural resource company reported $0.57 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.09). The company had revenue of $6.23 billion during the quarter, compared to analysts' expectations of $6.40 billion. Freeport-McMoRan had a return on equity of 8.50% and a net margin of 8.50%.The company's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.24 earnings per share.

Freeport-McMoRan Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 1st. Shareholders of record on Wednesday, April 15th will be issued a $0.075 dividend. The ex-dividend date is Wednesday, April 15th. This represents a $0.30 annualized dividend and a yield of 0.5%. Freeport-McMoRan's dividend payout ratio (DPR) is 19.87%.

Key Stories Impacting Freeport-McMoRan

Here are the key news stories impacting Freeport-McMoRan this week:

• Positive Sentiment: Higher copper prices and commodity tailwinds lifted quarterly profitability metrics and helped reported profit metrics despite operational issues; this supports the bull case for FCX. Read More.
• Positive Sentiment: Analyst support is rising: Deutsche Bank raised its price target (to $72) and maintained a Buy stance, and other outlets highlight investor interest in FCX as a recovery play — these upgrades help underpin the stock. Read More.
• Positive Sentiment: Market-cap milestone — coverage notes Freeport joining the ~$100B mining company club, reinforcing narrative of scale and investor interest. Read More.
• Neutral Sentiment: The company posted its full Q1 financial and operating release and slide deck on its IR site, providing details for investors to parse (revenue up ~8.8% y/y). Read More.
• Neutral Sentiment: Multiple comparative and feature pieces (FCX vs. BHP, beginner-stock lists) circulate — useful for context but less likely to move the stock intraday. Read More.
• Negative Sentiment: Reported EPS of $0.57 missed analysts' consensus (~$0.66), which is an immediate negative catalyst that can pressure the share price despite higher revenues. Read More.
• Negative Sentiment: Production fell — WSJ reports lower copper and gold output tied to last year’s fatal mudslide at the Indonesian Grasberg operation, a clear operational risk that reduces near-term volumes and investor confidence. Read More.
• Negative Sentiment: Scotiabank trimmed FY2026–FY2027 EPS estimates slightly, signaling some analyst caution on near-term earnings visibility. Small revisions can weigh on sentiment when paired with an EPS miss and operational disruptions. Read More.

Analyst Ratings Changes

Several research analysts have recently issued reports on FCX shares. Stifel Nicolaus increased their target price on Freeport-McMoRan from $52.00 to $76.00 and gave the stock a "buy" rating in a research report on Wednesday, February 11th. Raymond James Financial upped their price target on Freeport-McMoRan from $53.00 to $66.00 and gave the stock an "outperform" rating in a research note on Thursday, January 15th. Argus upgraded Freeport-McMoRan from a "hold" rating to a "buy" rating in a report on Friday, February 13th. Weiss Ratings reissued a "hold (c)" rating on shares of Freeport-McMoRan in a research report on Tuesday. Finally, Jefferies Financial Group boosted their target price on shares of Freeport-McMoRan from $68.00 to $76.00 and gave the company a "buy" rating in a report on Tuesday, February 17th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Freeport-McMoRan presently has a consensus rating of "Moderate Buy" and a consensus target price of $66.26.

Insider Activity at Freeport-McMoRan

In other Freeport-McMoRan news, CAO Stephen T. Higgins sold 29,654 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $63.00, for a total transaction of $1,868,202.00. Following the completion of the sale, the chief accounting officer directly owned 76,445 shares in the company, valued at approximately $4,816,035. This trade represents a 27.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Maree E. Robertson sold 48,500 shares of Freeport-McMoRan stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $61.55, for a total transaction of $2,985,175.00. Following the completion of the transaction, the chief financial officer directly owned 79,894 shares of the company's stock, valued at $4,917,475.70. This trade represents a 37.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 565,145 shares of company stock worth $35,839,918 in the last ninety days. 0.75% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Freeport-McMoRan

Large investors have recently added to or reduced their stakes in the stock. 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 valued at $118,000 after buying an additional 147 shares during the period. Apollon Wealth Management LLC grew its holdings in shares of Freeport-McMoRan by 18.6% in the first quarter. Apollon Wealth Management LLC now owns 35,585 shares of the natural resource company's stock worth $2,092,000 after acquiring an additional 5,588 shares during the period. Formidable Asset Management LLC purchased a new stake in Freeport-McMoRan during the first quarter valued at $254,000. Patton Fund Management Inc. increased its position in Freeport-McMoRan by 1,152.8% during the first quarter. Patton Fund Management Inc. now owns 61,348 shares of the natural resource company's stock valued at $3,606,000 after acquiring an additional 56,451 shares during the last quarter. Finally, Patriot Financial Group Insurance Agency LLC lifted its holdings in Freeport-McMoRan by 3.4% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 12,036 shares of the natural resource company's stock valued at $707,000 after acquiring an additional 395 shares during the period. Institutional investors own 80.77% of the company's stock.

Freeport-McMoRan Price Performance

The firm has a 50-day simple moving average of $62.51 and a 200-day simple moving average of $53.58. The firm has a market capitalization of $89.25 billion, a PE ratio of 41.10, a PEG ratio of 0.78 and a beta of 1.48. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.29 and a quick ratio of 1.05.

About Freeport-McMoRan

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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