Freeport-McMoRan (NYSE:FCX) Trading Down 3.9% on Analyst Downgrade

Key Points

• Shares fell 3.9% after BNP Paribas Exane cut its price target from $75 to $71 and several other brokers trimmed targets; the consensus rating is a Moderate Buy with an average target of $65.19.
• The company beat last quarter's estimates, reporting $0.57 EPS vs. $0.47 expected and revenue of $6.23B, and declared a quarterly dividend of $0.075 (0.5% yield).
• Significant insider selling has occurred recently — insiders sold 565,145 shares worth about $35.84 million over the past 90 days (insider ownership now 0.79%), including sales by the CAO and CFO.

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) was down 3.9% during mid-day trading on Tuesday after BNP Paribas Exane lowered their price target on the stock from $75.00 to $71.00. BNP Paribas Exane currently has an outperform rating on the stock. Freeport-McMoRan traded as low as $57.87 and last traded at $58.1950. Approximately 14,744,742 shares changed hands during trading, a decline of 26% from the average daily volume of 19,884,357 shares. The stock had previously closed at $60.57.

Several other equities research analysts also recently issued reports on the stock. The Goldman Sachs Group lowered their price objective on shares of Freeport-McMoRan from $70.00 to $68.00 and set a "buy" rating for the company in a research report on Friday. Wall Street Zen downgraded Freeport-McMoRan from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Morgan Stanley reaffirmed an "equal weight" rating and set a $66.00 price objective (down from $70.00) on shares of Freeport-McMoRan in a research report on Friday. Sanford C. Bernstein decreased their price objective on Freeport-McMoRan from $54.00 to $53.50 and set a "market perform" rating for the company in a report on Friday. Finally, CICC Research dropped their target price on Freeport-McMoRan from $64.40 to $63.40 and set an "outperform" rating on the stock in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Freeport-McMoRan presently has a consensus rating of "Moderate Buy" and an average target price of $65.19.

Insider Activity

In other news, CAO Ellie L. Mikes sold 11,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $62.03, for a total value of $682,330.00. Following the completion of the sale, the chief accounting officer directly owned 40,773 shares of the company's stock, valued at $2,529,149.19. This trade represents a 21.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Maree E. Robertson sold 48,500 shares of Freeport-McMoRan stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $61.55, for a total value of $2,985,175.00. Following the transaction, the chief financial officer owned 79,894 shares of the company's stock, valued at $4,917,475.70. This represents a 37.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 565,145 shares of company stock worth $35,839,918. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Pinnacle Bancorp Inc. increased its holdings in Freeport-McMoRan by 7.9% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,011 shares of the natural resource company's stock worth $118,000 after acquiring an additional 147 shares during the period. Steph & Co. lifted its stake in Freeport-McMoRan by 43.7% in the 1st quarter. Steph & Co. now owns 493 shares of the natural resource company's stock worth $29,000 after purchasing an additional 150 shares in the last quarter. Essex Bank boosted its holdings in Freeport-McMoRan by 1.2% in the 1st quarter. Essex Bank now owns 14,104 shares of the natural resource company's stock valued at $829,000 after purchasing an additional 163 shares during the period. Leo Wealth LLC grew its position in shares of Freeport-McMoRan by 2.5% during the 4th quarter. Leo Wealth LLC now owns 6,838 shares of the natural resource company's stock valued at $347,000 after purchasing an additional 170 shares in the last quarter. Finally, Klein Pavlis & Peasley Financial Inc. grew its position in shares of Freeport-McMoRan by 0.9% during the 1st quarter. Klein Pavlis & Peasley Financial Inc. now owns 18,674 shares of the natural resource company's stock valued at $1,098,000 after purchasing an additional 175 shares in the last quarter. 80.77% of the stock is currently owned by institutional investors.

Freeport-McMoRan Trading Down 3.9%

The stock has a market cap of $83.64 billion, a P/E ratio of 30.95, a PEG ratio of 0.70 and a beta of 1.48. The firm's fifty day moving average price is $62.42 and its two-hundred day moving average price is $54.07. 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 posted its quarterly earnings data on Thursday, April 23rd. The natural resource company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.10. Freeport-McMoRan had a return on equity of 9.88% and a net margin of 10.34%.The company had revenue of $6.23 billion during the quarter, compared to analyst estimates of $5.73 billion. During the same quarter last year, the company earned $0.24 earnings per share. The firm's quarterly revenue was up 8.8% on a year-over-year basis. As a group, equities research analysts forecast that Freeport-McMoRan Inc. will post 2.54 EPS for the current year.

Freeport-McMoRan Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Stockholders of record on Wednesday, April 15th will be given a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Wednesday, April 15th. Freeport-McMoRan's dividend payout ratio (DPR) is 15.96%.

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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