HudBay Minerals (NYSE:HBM) Trading 7.4% Higher on Analyst Upgrade

Key Points

• HudBay Minerals shares rose 7.4% after Wall Street Zen upgraded the stock from Hold to Buy, with shares trading as high as $22.31.
• Analyst sentiment remains generally positive: 11 analysts rate HBM a Buy, with a consensus rating of Moderate Buy and an average price target of $31.33.
• The company recently posted a beat on both earnings and revenue, reporting $0.40 EPS versus $0.34 expected and $757.3 million in revenue versus $684.73 million expected.

HudBay Minerals Inc (NYSE:HBM - Get Free Report) TSE: HBM shares traded up 7.4% on Tuesday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $22.31 and last traded at $22.3910. 1,062,340 shares changed hands during trading, a decline of 82% from the average daily volume of 5,808,536 shares. The stock had previously closed at $20.84.

A number of other equities research analysts have also recently issued reports on the company. Bank of America decreased their target price on HudBay Minerals from $33.50 to $29.50 and set a "buy" rating for the company in a research report on Thursday, July 9th. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of HudBay Minerals in a research report on Tuesday, April 21st. Citigroup reissued a "positive" rating on shares of HudBay Minerals in a research report on Wednesday, July 15th. Barclays boosted their target price on shares of HudBay Minerals from $30.00 to $32.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Finally, Weiss Ratings upgraded HudBay Minerals from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, June 29th. Eleven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, HudBay Minerals currently has a consensus rating of "Moderate Buy" and an average price target of $31.33.

Hedge Funds Weigh In On HudBay Minerals

A number of hedge funds and other institutional investors have recently bought and sold shares of HBM. FIL Ltd raised its position in HudBay Minerals by 202.0% during the fourth quarter. FIL Ltd now owns 33,143,172 shares of the mining company's stock worth $658,010,000 after acquiring an additional 22,169,339 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of HudBay Minerals during the 3rd quarter worth approximately $123,736,000. Mackenzie Financial Corp boosted its stake in HudBay Minerals by 116.1% in the fourth quarter. Mackenzie Financial Corp now owns 10,178,626 shares of the mining company's stock valued at $202,327,000 after buying an additional 5,468,109 shares in the last quarter. Norges Bank acquired a new position in shares of HudBay Minerals during the fourth quarter worth $105,315,000. Finally, Goldman Sachs Group Inc. increased its position in HudBay Minerals by 144.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 7,281,095 shares of the mining company's stock valued at $55,264,000 after acquiring an additional 4,299,428 shares during the period. 57.82% of the stock is owned by institutional investors.

HudBay Minerals Stock Performance

The company has a market capitalization of $9.99 billion, a P/E ratio of 13.57, a price-to-earnings-growth ratio of 0.30 and a beta of 1.48. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.20 and a current ratio of 1.36. The stock's 50 day moving average price is $25.17 and its 200 day moving average price is $24.05.

HudBay Minerals (NYSE:HBM - Get Free Report) TSE: HBM last released its quarterly earnings data on Friday, May 1st. The mining company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.06. The company had revenue of $757.30 million for the quarter, compared to analysts' expectations of $684.73 million. HudBay Minerals had a net margin of 27.75% and a return on equity of 10.04%. The business's revenue was up 27.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.24 EPS. As a group, equities analysts expect that HudBay Minerals Inc will post 1.61 EPS for the current year.

HudBay Minerals Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Tuesday, June 9th were issued a $0.01 dividend. The ex-dividend date of this dividend was Tuesday, June 9th. This represents a $0.04 annualized dividend and a yield of 0.2%. HudBay Minerals's dividend payout ratio (DPR) is 1.81%.

About HudBay Minerals

HudBay Minerals Inc is a Canada-based mining company engaged in the exploration, development and production of base and precious metals. Its primary products include copper, zinc, gold and silver concentrates, which are sold to smelters and refiners worldwide. The company's operations span multiple stages of the mining cycle, from resource definition and feasibility studies to mine construction, extraction and reclamation.

The company traces its roots back to 1927, when it was established as Hudson Bay Mining & Smelting Co Limited.

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