Freeport-McMoRan (NYSE:FCX) Stock Price Down 6% - Should You Sell?

Key Points

• Freeport-McMoRan's stock dropped 6% on Tuesday, closing at $43.88, with a trading volume significantly lower than average.
• Analysts have mixed ratings, with target prices ranging from $48.00 to $56.00 and an average rating of "Moderate Buy."
• The company recently announced a quarterly dividend of $0.15 per share, reflecting a 1.4% yield and a payout ratio of 22.73%.

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) dropped 6% on Tuesday . The company traded as low as $44.01 and last traded at $43.88. Approximately 6,560,124 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 15,316,408 shares. The stock had previously closed at $46.66.

Analyst Ratings Changes

Several research analysts recently commented on the company. Royal Bank Of Canada boosted their target price on Freeport-McMoRan from $52.00 to $54.00 and gave the stock a "sector perform" rating in a research note on Wednesday, June 4th. Hsbc Global Res cut Freeport-McMoRan from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 22nd. BMO Capital Markets lowered their target price on Freeport-McMoRan from $55.00 to $54.00 and set an "outperform" rating on the stock in a report on Thursday, July 24th. JPMorgan Chase & Co. increased their price target on Freeport-McMoRan from $42.00 to $56.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 9th. Finally, Citigroup raised their price objective on Freeport-McMoRan from $44.00 to $48.00 and gave the company a "neutral" rating in a research report on Tuesday, July 8th. Two research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $51.00.

Freeport-McMoRan Price Performance

The stock has a market capitalization of $63.02 billion, a price-to-earnings ratio of 33.22, a P/E/G ratio of 0.88 and a beta of 1.59. The company has a quick ratio of 1.21, a current ratio of 2.47 and a debt-to-equity ratio of 0.30. The business has a 50-day simple moving average of $43.71 and a two-hundred day simple moving average of $39.94.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last released its earnings results on Wednesday, July 23rd. The natural resource company reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.09. Freeport-McMoRan had a return on equity of 7.37% and a net margin of 7.45%.The firm had revenue of $7.58 billion during the quarter, compared to the consensus estimate of $6.85 billion. During the same period in the prior year, the firm posted $0.46 earnings per share. The firm's revenue for the quarter was up 14.5% compared to the same quarter last year. As a group, research analysts predict that Freeport-McMoRan Inc. will post 1.68 earnings per share for the current fiscal year.

Freeport-McMoRan Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 1st. Shareholders of record on Tuesday, July 15th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Tuesday, July 15th. Freeport-McMoRan's payout ratio is 22.73%.

Hedge Funds Weigh In On Freeport-McMoRan

A number of hedge funds have recently modified their holdings of the stock. Portside Wealth Group LLC increased its stake in shares of Freeport-McMoRan by 0.8% in the second quarter. Portside Wealth Group LLC now owns 30,333 shares of the natural resource company's stock worth $1,315,000 after acquiring an additional 245 shares during the last quarter. Hollencrest Capital Management boosted its holdings in Freeport-McMoRan by 0.6% in the second quarter. Hollencrest Capital Management now owns 45,133 shares of the natural resource company's stock worth $1,957,000 after purchasing an additional 250 shares in the last quarter. Waterloo Capital L.P. boosted its holdings in Freeport-McMoRan by 3.9% in the second quarter. Waterloo Capital L.P. now owns 6,658 shares of the natural resource company's stock worth $289,000 after purchasing an additional 251 shares in the last quarter. Strengthening Families & Communities LLC boosted its holdings in Freeport-McMoRan by 0.6% in the second quarter. Strengthening Families & Communities LLC now owns 42,617 shares of the natural resource company's stock worth $1,822,000 after purchasing an additional 261 shares in the last quarter. Finally, WealthCollab LLC boosted its holdings in Freeport-McMoRan by 17.1% in the second quarter. WealthCollab LLC now owns 1,820 shares of the natural resource company's stock worth $79,000 after purchasing an additional 266 shares in the last quarter. 80.77% of the stock is owned by institutional investors and hedge funds.

About Freeport-McMoRan

Freeport-McMoRan Inc engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile.

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