Mosaic (NYSE:MOS) Shares Gap Down Following Weak Earnings

Key Points

• Mosaic Company shares gapped down to $31.95 after reporting weaker than expected quarterly earnings, posting $0.51 EPS versus the consensus estimate of $0.71.
• Despite the earnings miss, the company's revenue increased by 6.7% year-over-year, totaling $3.01 billion, but fell short of analyst estimates of $3.11 billion.
• Several analysts have adjusted their price targets for Mosaic, with an average target price of $36.75 and a consensus rating of "Moderate Buy."

Shares of The Mosaic Company (NYSE:MOS - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $35.68, but opened at $31.95. Mosaic shares last traded at $31.90, with a volume of 2,407,795 shares traded.

The basic materials company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.71 by ($0.20). The company had revenue of $3.01 billion during the quarter, compared to analyst estimates of $3.11 billion. Mosaic had a net margin of 8.35% and a return on equity of 4.74%. Mosaic's revenue for the quarter was up 6.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 EPS.

Wall Street Analyst Weigh In

Several research analysts have commented on MOS shares. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Mosaic in a research report on Monday, July 14th. CIBC lifted their price target on Mosaic from $32.00 to $33.00 and gave the company a "neutral" rating in a research note on Friday, May 9th. JPMorgan Chase & Co. lifted their price objective on Mosaic from $29.00 to $35.00 and gave the stock an "overweight" rating in a report on Friday, May 9th. Barclays lifted their price objective on Mosaic from $40.00 to $46.00 and gave the stock an "overweight" rating in a report on Monday, July 7th. Finally, Wells Fargo & Company reduced their price objective on Mosaic from $38.00 to $34.00 and set an "equal weight" rating on the stock in a research report on Thursday. Five research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, Mosaic presently has a consensus rating of "Moderate Buy" and an average price target of $36.50.

Insider Buying and Selling

In other Mosaic news, SVP Walter F. Precourt III sold 18,000 shares of the company's stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $35.73, for a total transaction of $643,140.00. Following the completion of the sale, the senior vice president directly owned 128,546 shares in the company, valued at $4,592,948.58. This represents a 12.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Mosaic

Several institutional investors and hedge funds have recently modified their holdings of MOS. Rockefeller Capital Management L.P. grew its stake in Mosaic by 31.3% during the 2nd quarter. Rockefeller Capital Management L.P. now owns 20,003 shares of the basic materials company's stock valued at $730,000 after purchasing an additional 4,764 shares in the last quarter. Citizens Financial Group Inc. RI acquired a new stake in Mosaic during the 2nd quarter valued at approximately $233,000. Intech Investment Management LLC acquired a new stake in Mosaic during the 2nd quarter valued at approximately $335,000. Cetera Investment Advisers grew its stake in Mosaic by 6.6% during the 2nd quarter. Cetera Investment Advisers now owns 24,907 shares of the basic materials company's stock valued at $909,000 after purchasing an additional 1,532 shares in the last quarter. Finally, Creative Planning grew its stake in Mosaic by 39.7% during the 2nd quarter. Creative Planning now owns 36,851 shares of the basic materials company's stock valued at $1,344,000 after purchasing an additional 10,463 shares in the last quarter. Hedge funds and other institutional investors own 77.54% of the company's stock.

Mosaic Trading Up 0.9%

The business has a 50 day simple moving average of $35.86 and a two-hundred day simple moving average of $30.87. The company has a current ratio of 1.14, a quick ratio of 0.44 and a debt-to-equity ratio of 0.26. The stock has a market cap of $10.15 billion, a price-to-earnings ratio of 10.84, a price-to-earnings-growth ratio of 1.43 and a beta of 1.12.

Mosaic Company Profile

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name.