Hecla Mining (NYSE:HL) Shares Gap Down - Should You Sell?

Key Points

• Hecla gapped down Friday, opening at $23.59 after a $26.32 close and last trading around $24.21 on ~4.82 million shares, signaling an immediate negative market reaction.
• Analysts have raised price targets (examples: CIBC $32, HC Wainwright $36.50, BMO $28), but consensus remains "Hold" with an average target of $22.00, reflecting mixed sentiment and a wide range of expectations.
• Hecla reported a strong quarter with revenue up 67.1% YoY and a slight EPS beat, yet it trades at a high P/E (~76.7), pays a negligible dividend (~0.1% yield), and has seen notable insider selling (426,679 shares in the last 90 days).

Hecla Mining Company (NYSE:HL - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $26.32, but opened at $23.59. Hecla Mining shares last traded at $24.2060, with a volume of 4,816,045 shares.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on HL shares. CIBC boosted their price objective on shares of Hecla Mining from $27.00 to $32.00 and gave the company a "neutral" rating in a research note on Wednesday. HC Wainwright boosted their price target on shares of Hecla Mining from $16.50 to $36.50 and gave the stock a "buy" rating in a research note on Tuesday. BMO Capital Markets raised their price objective on shares of Hecla Mining from $16.00 to $28.00 and gave the company a "market perform" rating in a research report on Tuesday. Wall Street Zen upgraded Hecla Mining from a "hold" rating to a "buy" rating in a research report on Sunday, November 2nd. Finally, Canaccord Genuity Group set a $26.50 target price on Hecla Mining in a research note on Friday, January 23rd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $22.00.

Hecla Mining Stock Performance

The stock's fifty day simple moving average is $20.96 and its 200-day simple moving average is $14.00. The company has a quick ratio of 1.51, a current ratio of 2.15 and a debt-to-equity ratio of 0.11. The company has a market capitalization of $15.82 billion, a PE ratio of 76.74 and a beta of 1.28.

Hecla Mining (NYSE:HL - Get Free Report) last released its quarterly earnings results on Wednesday, November 5th. The basic materials company reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.01. The business had revenue of $409.54 million for the quarter, compared to analysts' expectations of $315.60 million. Hecla Mining had a return on equity of 7.87% and a net margin of 16.35%.The company's revenue was up 67.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.03 EPS. On average, research analysts predict that Hecla Mining Company will post 0.21 earnings per share for the current fiscal year.

Hecla Mining Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 8th. Stockholders of record on Monday, November 24th were given a $0.0038 dividend. The ex-dividend date was Monday, November 24th. This represents a $0.02 dividend on an annualized basis and a dividend yield of 0.1%. Hecla Mining's dividend payout ratio (DPR) is currently 3.23%.

Insider Transactions at Hecla Mining

In other Hecla Mining news, VP David C. Sienko sold 207,553 shares of the company's stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $19.42, for a total value of $4,030,679.26. Following the sale, the vice president owned 906,370 shares of the company's stock, valued at $17,601,705.40. This represents a 18.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Russell Douglas Lawlar sold 148,372 shares of the firm's stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $15.00, for a total transaction of $2,225,580.00. Following the transaction, the chief financial officer directly owned 347,402 shares of the company's stock, valued at approximately $5,211,030. This trade represents a 29.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 426,679 shares of company stock valued at $7,678,773 in the last 90 days. 0.62% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hecla Mining

Several institutional investors and hedge funds have recently modified their holdings of HL. Transce3nd LLC acquired a new position in Hecla Mining in the 2nd quarter valued at $25,000. USA Financial Formulas purchased a new stake in shares of Hecla Mining in the third quarter valued at $25,000. Lodestone Wealth Management LLC acquired a new position in Hecla Mining in the fourth quarter valued at $28,000. UMB Bank n.a. lifted its position in Hecla Mining by 2,390.0% during the third quarter. UMB Bank n.a. now owns 2,490 shares of the basic materials company's stock worth $30,000 after buying an additional 2,390 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in Hecla Mining by 255.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 6,156 shares of the basic materials company's stock worth $37,000 after buying an additional 4,425 shares during the last quarter. Hedge funds and other institutional investors own 63.01% of the company's stock.

Hecla Mining Company Profile

Hecla Mining Company, founded in 1891 and headquartered in Coeur d'Alene, Idaho, is one of the oldest publicly traded precious metals companies in the United States. Originally established to develop the rich silver deposits of the Coeur d'Alene district, Hecla has evolved into a diversified mining enterprise focused on the exploration, development and production of silver and gold, with by-product credits from lead and zinc.

The company's principal operations are located in North America and Latin America.

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