Mosaic Target of Unusually High Options Trading (NYSE:MOS)

Key Points

• Mosaic saw unusually heavy options activity, with traders purchasing 32,092 call options—132% above its typical volume of 13,829 contracts.
• Analysts remain broadly cautious, with the stock carrying a consensus “Hold” rating and an average price target of $27.17. Recent targets ranged from $23 to $30, while Mosaic’s latest quarter showed slightly better-than-expected EPS but a 6% year-over-year revenue decline.
• Mosaic declared a quarterly dividend of $0.22 per share, equivalent to an annualized $0.88 payout and a 3.4% yield; shares recently traded at $26.21.

The Mosaic Company (NYSE:MOS - Get Free Report) was the target of some unusual options trading on Wednesday. Traders bought 32,092 call options on the company. This represents an increase of 132% compared to the typical volume of 13,829 call options.

Analyst Ratings Changes

Several equities research analysts have commented on MOS shares. Mizuho set a $25.00 price objective on Mosaic in a research note on Wednesday, August 5th. HSBC cut their price objective on shares of Mosaic from $26.00 to $23.00 and set a "hold" rating for the company in a research report on Thursday, June 18th. Wall Street Zen cut Mosaic from a "sell" rating to a "strong sell" rating in a research note on Sunday, July 12th. BMO Capital Markets reduced their price target on shares of Mosaic from $31.00 to $30.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 30th. Finally, Freedom Capital downgraded Mosaic from a "strong-buy" rating to a "strong sell" rating in a report on Thursday, August 13th. Seven analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Mosaic presently has an average rating of "Hold" and a consensus price target of $27.17.

Mosaic Stock Performance

Shares of NYSE MOS traded down $0.32 during mid-day trading on Wednesday, hitting $26.21. 7,515,300 shares of the company were exchanged, compared to its average volume of 8,785,211. The stock has a 50 day simple moving average of $22.89 and a 200-day simple moving average of $23.86. Mosaic has a 1-year low of $19.80 and a 1-year high of $36.99. The company has a quick ratio of 0.43, a current ratio of 1.34 and a debt-to-equity ratio of 0.41. The firm has a market cap of $8.33 billion, a price-to-earnings ratio of -12.98, a price-to-earnings-growth ratio of 4.68 and a beta of 0.83.

Mosaic (NYSE:MOS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The basic materials company reported $0.13 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.01. Mosaic had a negative net margin of 5.21% and a positive return on equity of 3.77%. The company had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $3.10 billion. During the same quarter in the prior year, the firm earned $0.51 EPS. Mosaic's quarterly revenue was down 6.0% on a year-over-year basis. On average, sell-side analysts forecast that Mosaic will post 0.54 EPS for the current fiscal year.

Mosaic Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Thursday, September 10th. Mosaic's dividend payout ratio is currently -43.56%.

Insiders Place Their Bets

In other Mosaic news, SVP Walter Precourt, III sold 23,000 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $22.12, for a total transaction of $508,760.00. Following the transaction, the senior vice president directly owned 116,198 shares of the company's stock, valued at $2,570,299.76. This trade represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Mosaic

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC lifted its holdings in shares of Mosaic by 56.3% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 34,042 shares of the basic materials company's stock valued at $721,000 after buying an additional 12,259 shares during the period. SailingStone Capital Partners LLC acquired a new position in Mosaic during the second quarter worth $25,160,000. WINTON GROUP Ltd grew its holdings in Mosaic by 154.6% during the second quarter. WINTON GROUP Ltd now owns 22,793 shares of the basic materials company's stock worth $483,000 after acquiring an additional 13,841 shares during the period. Cidel Asset Management Inc. grew its holdings in Mosaic by 19.2% during the second quarter. Cidel Asset Management Inc. now owns 12,885 shares of the basic materials company's stock worth $273,000 after acquiring an additional 2,072 shares during the period. Finally, Integrated Wealth Concepts LLC raised its position in Mosaic by 25.2% in the second quarter. Integrated Wealth Concepts LLC now owns 63,727 shares of the basic materials company's stock worth $1,350,000 after acquiring an additional 12,834 shares in the last quarter. Institutional investors and hedge funds own 77.54% of the company's stock.

Mosaic Company Profile

Mosaic Co is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. The company's primary business activities center on the extraction, processing and distribution of phosphate rock, phosphate-based fertilizers and potash products. These core nutrients are essential components in modern agriculture, supporting crop yields and soil health across a range of farming applications.

In its phosphate segment, Mosaic operates mining and production facilities that convert phosphate rock into concentrated phosphates, finished phosphate fertilizers and feed phosphates for animal nutrition.

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