HudBay Minerals (NYSE:HBM) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• HudBay Minerals shares surged, opening at $11.57 after closing at $9.85, following the release of better-than-expected quarterly earnings of $0.19 per share, surpassing the consensus estimate of $0.17.
• The mining company experienced a 26.1% increase in revenue year-over-year and has received several upgrades from analysts, with five giving it a buy rating and three a strong buy rating.
• Institutional investors have significantly increased their stakes in HudBay, with notable boosts from Picton Mahoney Asset Management and Millennium Management, reflecting growing confidence in the company's prospects.

Shares of HudBay Minerals Inc (NYSE:HBM - Get Free Report) TSE: HBM gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.85, but opened at $11.57. HudBay Minerals shares last traded at $11.77, with a volume of 8,964,562 shares trading hands.

The mining company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.02. HudBay Minerals had a net margin of 7.40% and a return on equity of 8.17%. The firm's revenue for the quarter was up 26.1% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

HBM has been the topic of a number of research analyst reports. Veritas raised shares of HudBay Minerals to a "strong-buy" rating in a report on Monday, July 7th. Wall Street Zen upgraded shares of HudBay Minerals from a "buy" rating to a "strong-buy" rating in a research report on Saturday. CIBC reiterated an "outperform" rating on shares of HudBay Minerals in a research report on Tuesday, July 15th. BMO Capital Markets started coverage on shares of HudBay Minerals in a research report on Wednesday, April 16th. They set an "outperform" rating on the stock. Finally, Scotiabank restated an "outperform" rating on shares of HudBay Minerals in a research report on Tuesday, May 13th. Five analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat.com, HudBay Minerals presently has an average rating of "Buy".

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HBM. Picton Mahoney Asset Management acquired a new position in HudBay Minerals during the second quarter valued at approximately $61,432,000. Millennium Management LLC boosted its position in HudBay Minerals by 298.5% during the first quarter. Millennium Management LLC now owns 6,115,053 shares of the mining company's stock valued at $46,411,000 after purchasing an additional 4,580,718 shares during the last quarter. L1 Capital Pty Ltd boosted its position in HudBay Minerals by 44.1% during the first quarter. L1 Capital Pty Ltd now owns 14,423,384 shares of the mining company's stock valued at $109,365,000 after purchasing an additional 4,410,778 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in HudBay Minerals by 144.2% during the first quarter. Goldman Sachs Group Inc. now owns 7,281,095 shares of the mining company's stock valued at $55,264,000 after purchasing an additional 4,299,428 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in HudBay Minerals by 86.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 9,149,134 shares of the mining company's stock valued at $74,105,000 after purchasing an additional 4,253,400 shares during the last quarter. 57.82% of the stock is owned by institutional investors and hedge funds.

HudBay Minerals Stock Up 19.6%

The firm has a 50-day moving average of $9.95 and a 200 day moving average of $8.57. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.32 and a quick ratio of 1.92. The stock has a market capitalization of $4.66 billion, a price-to-earnings ratio of 30.79, a PEG ratio of 0.25 and a beta of 1.63.

HudBay Minerals Company Profile

Hudbay Minerals Inc, a diversified mining company, focuses on the exploration, development, operation, and optimization of properties in North and South America. It produces copper concentrates containing gold, silver, and molybdenum; gold concentrates containing zinc; zinc concentrates; molybdenum concentrates; and silver/gold doré.

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