Freeport-McMoRan (NYSE:FCX) Stock Price Up 1.6% - Here's Why

Key Points

• Freeport-McMoRan shares rose 1.6% in midday trading, reaching as high as $68.85 before last trading near $67.10, on lighter-than-average volume.
• The company’s recent earnings beat expectations, posting $0.57 EPS on $6.23 billion in revenue, both ahead of analyst estimates, with quarterly revenue up 8.8% year over year.
• Analyst sentiment remains generally positive despite some target cuts: the stock carries a “Moderate Buy” consensus rating, with an average price target of $65.14.

Shares of Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) shot up 1.6% during mid-day trading on Wednesday . The company traded as high as $68.85 and last traded at $67.0980. 16,911,627 shares were traded during mid-day trading, a decline of 12% from the average session volume of 19,282,977 shares. The stock had previously closed at $66.03.

Analyst Ratings Changes

FCX has been the topic of a number of analyst reports. Wells Fargo & Company lowered their target price on Freeport-McMoRan from $77.00 to $68.00 and set an "overweight" rating on the stock in a report on Friday, April 24th. Jefferies Financial Group set a $75.00 price objective on Freeport-McMoRan in a research report on Thursday, April 23rd. CICC Research decreased their price objective on Freeport-McMoRan from $64.40 to $63.40 and set an "outperform" rating on the stock in a research note on Tuesday, April 28th. Stifel Nicolaus lifted their price objective on Freeport-McMoRan from $52.00 to $76.00 and gave the stock a "buy" rating in a research report on Wednesday, February 11th. Finally, HSBC boosted their target price on shares of Freeport-McMoRan from $69.00 to $72.00 and gave the company a "buy" rating in a research note on Tuesday, April 14th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $65.14.

Freeport-McMoRan Stock Performance

The firm has a market cap of $96.43 billion, a PE ratio of 35.69, a P/E/G ratio of 0.77 and a beta of 1.32. The stock has a 50-day moving average price of $61.52 and a 200 day moving average price of $55.27. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.39 and a quick ratio of 1.13.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The natural resource company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.10. The firm had revenue of $6.23 billion for the quarter, compared to analyst estimates of $5.73 billion. Freeport-McMoRan had a return on equity of 9.88% and a net margin of 10.34%.The firm's quarterly revenue was up 8.8% on a year-over-year basis. During the same period last year, the company earned $0.24 EPS. Research analysts forecast that Freeport-McMoRan Inc. will post 2.56 earnings per share for the current year.

Freeport-McMoRan Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 1st. Investors of record on Wednesday, April 15th were issued a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Wednesday, April 15th. Freeport-McMoRan's payout ratio is presently 15.96%.

Insider Buying and Selling

In related news, CFO Maree E. Robertson sold 48,500 shares of the company's stock in a transaction that occurred on Friday, February 13th. The shares were 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 owned 79,894 shares of the company's stock, valued at approximately $4,917,475.70. This represents a 37.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Stephen T. Higgins sold 29,654 shares of Freeport-McMoRan stock in a transaction on 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 transaction, the chief accounting officer owned 76,445 shares in the company, valued at approximately $4,816,035. This trade represents a 27.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 89,154 shares of company stock valued at $5,535,707. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in FCX. Steph & Co. lifted its stake in shares of Freeport-McMoRan by 43.7% in the 1st quarter. Steph & Co. now owns 493 shares of the natural resource company's stock valued at $29,000 after purchasing an additional 150 shares in the last quarter. Cassaday & Co Wealth Management LLC acquired a new stake in Freeport-McMoRan during the 1st quarter worth approximately $29,000. Strategic Investment Solutions Inc. IL purchased a new position in Freeport-McMoRan in the fourth quarter valued at approximately $25,000. Kemnay Advisory Services Inc. purchased a new position in Freeport-McMoRan in the fourth quarter valued at approximately $29,000. Finally, Financial Life Planners acquired a new position in Freeport-McMoRan during the first quarter valued at approximately $34,000. 80.77% of the stock is owned by hedge funds and other institutional investors.

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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