Intrepid Potash (NYSE:IPI) Reaches New 1-Year High on Strong Earnings

Key Points

• 52-week high after earnings beat: Intrepid Potash shares climbed as high as $42.86 (last $41.28), up about 13.2%, after reporting EPS of $0.49 vs. $0.26 consensus and revenue of $75.88M vs. $65.25M estimates.
• Analysts remain bearish despite the rally — the consensus rating is "Sell" with an average price target of $25.00.
• Institutional ownership is sizable (56.13%), highlighted by Gate City Capital’s 338.6% increase to 914,026 shares in the fourth quarter.

Shares of Intrepid Potash, Inc (NYSE:IPI - Get Free Report) reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $42.86 and last traded at $41.28, with a volume of 194174 shares changing hands. The stock had previously closed at $36.06.

The basic materials company reported $0.49 EPS for the quarter, beating the consensus estimate of $0.26 by $0.23. The company had revenue of $75.88 million for the quarter, compared to the consensus estimate of $65.25 million. Intrepid Potash had a negative net margin of 70.24% and a positive return on equity of 2.32%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on IPI. UBS Group boosted their price target on Intrepid Potash from $24.00 to $25.00 and gave the stock a "sell" rating in a research note on Thursday. Wall Street Zen downgraded shares of Intrepid Potash from a "buy" rating to a "hold" rating in a research report on Saturday, November 8th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Intrepid Potash in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Sell" and a consensus target price of $25.00.

Hedge Funds Weigh In On Intrepid Potash

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Gate City Capital Management LLC raised its position in shares of Intrepid Potash by 338.6% during the 4th quarter. Gate City Capital Management LLC now owns 914,026 shares of the basic materials company's stock valued at $25,346,000 after buying an additional 705,638 shares in the last quarter. Vanguard Group Inc. increased its stake in Intrepid Potash by 12.6% during the third quarter. Vanguard Group Inc. now owns 726,027 shares of the basic materials company's stock worth $22,202,000 after acquiring an additional 81,121 shares during the last quarter. Azarias Capital Management L.P. increased its stake in Intrepid Potash by 13.5% during the fourth quarter. Azarias Capital Management L.P. now owns 294,870 shares of the basic materials company's stock worth $8,177,000 after acquiring an additional 35,082 shares during the last quarter. Geode Capital Management LLC raised its position in Intrepid Potash by 0.6% during the second quarter. Geode Capital Management LLC now owns 241,039 shares of the basic materials company's stock valued at $8,614,000 after purchasing an additional 1,520 shares during the period. Finally, American Century Companies Inc. lifted its stake in shares of Intrepid Potash by 24.7% in the 2nd quarter. American Century Companies Inc. now owns 230,113 shares of the basic materials company's stock valued at $8,222,000 after purchasing an additional 45,577 shares during the last quarter. 56.13% of the stock is owned by hedge funds and other institutional investors.

Intrepid Potash Trading Up 13.2%

The firm has a market capitalization of $548.35 million, a P/E ratio of -2.69 and a beta of 1.53. The firm has a 50 day moving average price of $32.45 and a 200-day moving average price of $29.33.

About Intrepid Potash

Intrepid Potash, Inc is a leading U.S.-based producer and marketer of potash and related specialty fertilizer products. The company's primary business centers on potassium chloride, a key nutrient used in agricultural applications to enhance crop yield and quality. In addition to potash, Intrepid Potash produces magnesium chloride and sodium chloride, which serve a variety of markets including de-icing, dust control and industrial chemical production.

Intrepid Potash operates through a combination of solution mining, solar evaporation and conventional underground mining techniques.

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