Freeport-McMoRan (NYSE:FCX) Trading 3.9% Higher - Time to Buy?

Key Points

• Freeport-McMoRan shares were up 3.9% to about $57.71 on Tuesday (peak $57.99) with mid-day volume down ~30% versus the average, and the stock sits between its 50-day ($62.16) and 200-day ($54.41) moving averages.
• The company beat quarterly expectations—EPS $0.57 vs. $0.47 expected and revenue $6.23B vs. $5.73B expected (revenue +8.8% YoY)—and the analyst consensus is a "Moderate Buy" with an average price target of $65.14 and projected FY EPS of 2.52.
• Insiders have been net sellers (565,145 shares worth about $35.8M over the past 90 days), while Freeport pays a small quarterly dividend (annualized $0.30, ~0.5% yield) and maintains modest leverage (debt/equity 0.28).

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report)'s stock price traded up 3.9% on Tuesday . The company traded as high as $57.99 and last traded at $57.7120. 13,667,167 shares were traded during mid-day trading, a decline of 30% from the average session volume of 19,531,664 shares. The stock had previously closed at $55.57.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Morgan Stanley reissued an "equal weight" rating and issued a $66.00 price objective (down from $70.00) on shares of Freeport-McMoRan in a research report on Friday, April 24th. Sanford C. Bernstein reduced their price target on shares of Freeport-McMoRan from $54.00 to $53.50 and set a "market perform" rating on the stock in a research report on Friday, April 24th. Scotiabank reduced their price target on shares of Freeport-McMoRan from $71.00 to $67.00 and set a "sector perform" rating on the stock in a research report on Friday, April 24th. Bank of America increased their price target on shares of Freeport-McMoRan from $68.00 to $81.00 and gave the stock a "buy" rating in a research report on Thursday, February 26th. Finally, Jefferies Financial Group set a $75.00 price target on shares of Freeport-McMoRan in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Freeport-McMoRan presently has a consensus rating of "Moderate Buy" and an average price target of $65.14.

Freeport-McMoRan Stock Up 3.9%

The company has a debt-to-equity ratio of 0.28, a current ratio of 2.39 and a quick ratio of 1.13. The stock's fifty day simple moving average is $62.16 and its 200-day simple moving average is $54.41. The stock has a market cap of $82.94 billion, a P/E ratio of 30.70, a PEG ratio of 0.69 and a beta of 1.32.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last issued its 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. Freeport-McMoRan had a net margin of 10.34% and a return on equity of 9.88%. The firm had revenue of $6.23 billion for the quarter, compared to analysts' expectations of $5.73 billion. During the same quarter last year, the company posted $0.24 earnings per share. Freeport-McMoRan's revenue was up 8.8% on a year-over-year basis. On average, research analysts anticipate that Freeport-McMoRan Inc. will post 2.52 earnings per share for the current year.

Freeport-McMoRan Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 1st. Shareholders of record on Wednesday, April 15th were paid a $0.075 dividend. The ex-dividend date was Wednesday, April 15th. This represents a $0.30 annualized dividend and a dividend yield of 0.5%. Freeport-McMoRan's dividend payout ratio (DPR) is presently 15.96%.

Insider Buying and Selling

In other Freeport-McMoRan news, Chairman Richard C. Adkerson sold 152,960 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $64.65, for a total value of $9,888,864.00. Following the sale, the chairman owned 3,356,159 shares in the company, valued at approximately $216,975,679.35. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Maree E. Robertson sold 48,500 shares of the firm'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 sale, the chief financial officer owned 79,894 shares in the company, valued at $4,917,475.70. The trade was a 37.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 565,145 shares of company stock valued at $35,839,918 in the last ninety days. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Freeport-McMoRan

Several large investors have recently made changes to their positions in the company. Three Seasons Wealth LLC acquired a new stake in shares of Freeport-McMoRan in the first quarter valued at approximately $366,000. Geneos Wealth Management Inc. increased its stake in shares of Freeport-McMoRan by 1.7% in the first quarter. Geneos Wealth Management Inc. now owns 15,678 shares of the natural resource company's stock valued at $922,000 after purchasing an additional 261 shares during the period. Harel Insurance Investments & Financial Services Ltd. acquired a new stake in shares of Freeport-McMoRan in the first quarter valued at approximately $39,000. MASTERINVEST Kapitalanlage GmbH increased its stake in shares of Freeport-McMoRan by 40.7% in the first quarter. MASTERINVEST Kapitalanlage GmbH now owns 6,855 shares of the natural resource company's stock valued at $403,000 after purchasing an additional 1,984 shares during the period. Finally, NFSG Corp increased its stake in shares of Freeport-McMoRan by 49.0% in the first quarter. NFSG Corp now owns 2,442 shares of the natural resource company's stock valued at $144,000 after purchasing an additional 803 shares during the period. Institutional investors and hedge funds own 80.77% of the company's stock.

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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