Freeport-McMoRan (NYSE:FCX) Trading Up 4.5% - Here's Why

Key Points

• Freeport-McMoRan's shares increased by 4.5% to $42.74 during mid-day trading, following a previous close of $40.88, with trading volume dropping by 8% from the average.
• Equity analysts have downgraded Freeport-McMoRan's stock ratings, with several firms like HSBC and Morgan Stanley lowering their price targets to values between $43.00 and $46.00.
• The company announced a quarterly dividend of $0.15 per share, which will be paid to shareholders on November 3rd, indicating a dividend yield of 1.4% and a payout ratio of 22.73%.

Shares of Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) were up 4.5% during mid-day trading on Monday . The company traded as high as $43.50 and last traded at $42.74. Approximately 15,425,085 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 16,819,615 shares. The stock had previously closed at $40.88.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on FCX shares. HSBC reduced their target price on Freeport-McMoRan from $46.00 to $43.00 and set a "hold" rating for the company in a research note on Thursday, September 25th. Wall Street Zen lowered Freeport-McMoRan from a "buy" rating to a "hold" rating in a research note on Friday, September 26th. Morgan Stanley reduced their target price on Freeport-McMoRan from $48.00 to $46.00 and set an "overweight" rating for the company in a research note on Wednesday, October 8th. Raymond James Financial cut their price target on Freeport-McMoRan from $55.00 to $46.00 and set an "outperform" rating on the stock in a research report on Thursday, September 25th. Finally, BMO Capital Markets cut their price target on Freeport-McMoRan from $54.00 to $48.00 and set an "outperform" rating on the stock in a research report on Wednesday, September 24th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $46.56.

Freeport-McMoRan Price Performance

The company has a current ratio of 2.47, a quick ratio of 1.21 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $61.36 billion, a price-to-earnings ratio of 32.38, a P/E/G ratio of 0.93 and a beta of 1.58. The firm has a 50-day simple moving average of $42.51 and a two-hundred day simple moving average of $40.55.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The natural resource company reported $0.54 EPS for the quarter, beating 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 for the quarter, compared to analysts' expectations of $6.85 billion. During the same period last year, the firm earned $0.46 EPS. The company's quarterly revenue was up 14.5% on a year-over-year basis. As a group, analysts predict that Freeport-McMoRan Inc. will post 1.68 earnings per share for the current fiscal year.

Freeport-McMoRan Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Wednesday, October 15th will be given a dividend of $0.15 per share. The ex-dividend date is Wednesday, October 15th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.4%. Freeport-McMoRan's dividend payout ratio (DPR) is 22.73%.

Institutional Investors Weigh In On Freeport-McMoRan

Institutional investors have recently modified their holdings of the business. Stratos Investment Management LLC grew 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 acquiring an additional 45,458 shares during the period. Community Bank N.A. boosted its holdings in Freeport-McMoRan by 18.5% in the 1st quarter. Community Bank N.A. now owns 39,571 shares of the natural resource company's stock worth $1,498,000 after buying an additional 6,188 shares during the last quarter. Bourgeon Capital Management LLC boosted its holdings in Freeport-McMoRan by 8.1% in the 2nd quarter. Bourgeon Capital Management LLC now owns 331,549 shares of the natural resource company's stock worth $14,373,000 after buying an additional 24,803 shares during the last quarter. Arizona State Retirement System boosted its holdings in Freeport-McMoRan by 2.2% in the 1st quarter. Arizona State Retirement System now owns 421,469 shares of the natural resource company's stock worth $15,957,000 after buying an additional 8,989 shares during the last quarter. Finally, Financial Sense Advisors Inc. boosted its holdings in Freeport-McMoRan by 527.9% in the 1st quarter. Financial Sense Advisors Inc. now owns 76,127 shares of the natural resource company's stock worth $2,882,000 after buying an additional 64,003 shares during the last quarter. 80.77% of the stock is currently 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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