Freeport-McMoRan (NYSE:FCX) Shares Down 6.3% - Here's Why

Key Points

• Freeport-McMoRan's stock price dropped 6.3% to $40.53, with trading volume significantly below average at approximately 4.32 million shares.
• Analyst ratings are mixed, with a consensus average rating of "Moderate Buy" and a target price of $51.00, while recent upgrades have set price targets as high as $56.00.
• The company reported better-than-expected quarterly earnings with an EPS of $0.54 on revenue of $7.58 billion, exceeding estimates and showing a 14.5% year-over-year revenue growth.

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) was down 6.3% during trading on Wednesday . The company traded as low as $42.70 and last traded at $40.53. Approximately 4,320,072 shares were traded during trading, a decline of 73% from the average daily volume of 15,784,264 shares. The stock had previously closed at $43.23.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on FCX shares. Raymond James Financial reaffirmed an "outperform" rating and set a $52.00 price target on shares of Freeport-McMoRan in a research report on Friday, April 25th. BMO Capital Markets decreased their price objective on Freeport-McMoRan from $55.00 to $54.00 and set an "outperform" rating on the stock in a research note on Thursday, July 24th. Stifel Nicolaus assumed coverage on Freeport-McMoRan in a research note on Wednesday, July 9th. They set a "buy" rating and a $56.00 price objective on the stock. Hsbc Global Res lowered Freeport-McMoRan from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 22nd. Finally, Wall Street Zen upgraded Freeport-McMoRan from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Eight equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $51.00.

Freeport-McMoRan Price Performance

The firm has a market capitalization of $57.29 billion, a P/E ratio of 30.19, a price-to-earnings-growth ratio of 0.71 and a beta of 1.64. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.47. The business has a 50 day simple moving average of $42.70 and a two-hundred day simple moving average of $39.05.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last announced 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. The business had revenue of $7.58 billion for the quarter, compared to analyst estimates of $6.85 billion. Freeport-McMoRan had a return on equity of 7.37% and a net margin of 7.45%. The company's quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.46 EPS. On average, sell-side analysts expect that Freeport-McMoRan Inc. will post 1.68 EPS for the current fiscal year.

Freeport-McMoRan Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Tuesday, July 15th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 1.5%. Freeport-McMoRan's dividend payout ratio (DPR) is presently 22.73%.

Insider Activity at Freeport-McMoRan

In other news, CAO Ellie L. Mikes sold 8,584 shares of the stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $40.02, for a total transaction of $343,531.68. Following the transaction, the chief accounting officer directly owned 48,333 shares in the company, valued at approximately $1,934,286.66. This represents a 15.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.75% of the company's stock.

Hedge Funds Weigh In On Freeport-McMoRan

Institutional investors have recently modified their holdings of the company. Stratos Investment Management LLC increased its position in shares of Freeport-McMoRan by 238.5% during the 1st quarter. Stratos Investment Management LLC now owns 64,519 shares of the natural resource company's stock valued at $2,443,000 after purchasing an additional 45,458 shares during the last quarter. Community Bank N.A. increased its position in shares of Freeport-McMoRan by 18.5% during the 1st quarter. Community Bank N.A. now owns 39,571 shares of the natural resource company's stock valued at $1,498,000 after purchasing an additional 6,188 shares during the last quarter. Arizona State Retirement System increased its position in shares of Freeport-McMoRan by 2.2% during the 1st quarter. Arizona State Retirement System now owns 421,469 shares of the natural resource company's stock valued at $15,957,000 after purchasing an additional 8,989 shares during the last quarter. Financial Sense Advisors Inc. increased its position in shares of Freeport-McMoRan by 527.9% during the 1st quarter. Financial Sense Advisors Inc. now owns 76,127 shares of the natural resource company's stock valued at $2,882,000 after purchasing an additional 64,003 shares during the last quarter. Finally, Anderson Hoagland & Co. increased its position in shares of Freeport-McMoRan by 27.6% during the 1st quarter. Anderson Hoagland & Co. now owns 109,565 shares of the natural resource company's stock valued at $4,148,000 after purchasing an additional 23,695 shares during the last quarter. 80.77% of the stock is currently owned by institutional investors.

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.