Stock Traders Purchase Large Volume of Wheaton Precious Metals Put Options (NYSE:WPM)

Key Points

• Put-option activity surged: Investors purchased 26,101 Wheaton Precious Metals put options, roughly 514% above the average daily volume, signaling unusually high hedging or bearish activity.
• Shares declined 5.3%: WPM fell to $135.35 during Monday trading, while trading volume exceeded its average. Despite the decline, the company reported quarterly EPS of $1.19, beating analyst expectations, and revenue rose 84.7% year over year.
• Analysts remain broadly positive: Eleven analysts rate the stock a Buy and one has a Hold rating, producing a “Moderate Buy” consensus and an average price target of $166. Institutional investors own approximately 70.34% of the company.

Wheaton Precious Metals Corp. (NYSE:WPM - Get Free Report) saw unusually large options trading on Monday. Stock investors bought 26,101 put options on the company. This represents an increase of approximately 514% compared to the typical daily volume of 4,250 put options.

Wheaton Precious Metals Stock Down 5.3%

Wheaton Precious Metals stock traded down $7.57 during midday trading on Monday, hitting $135.35. 3,052,599 shares of the stock were exchanged, compared to its average volume of 2,248,328. Wheaton Precious Metals has a 1 year low of $92.57 and a 1 year high of $165.76. The company has a debt-to-equity ratio of 0.20, a current ratio of 0.47 and a quick ratio of 0.47. The firm has a market cap of $61.47 billion, a P/E ratio of 30.01, a P/E/G ratio of 2.53 and a beta of 0.60. The company has a 50 day moving average price of $138.19 and a two-hundred day moving average price of $131.18.

Wheaton Precious Metals (NYSE:WPM - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $1.19 earnings per share for the quarter, beating analysts' consensus estimates of $1.15 by $0.04. The company had revenue of $878.00 million during the quarter, compared to analysts' expectations of $879.29 million. Wheaton Precious Metals had a net margin of 64.66% and a return on equity of 21.97%. The firm's revenue for the quarter was up 84.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.63 EPS. On average, sell-side analysts predict that Wheaton Precious Metals will post 4.79 earnings per share for the current fiscal year.

Wheaton Precious Metals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were issued a $0.1950 dividend. The ex-dividend date of this dividend was Thursday, August 20th. This represents a $0.78 dividend on an annualized basis and a yield of 0.6%. Wheaton Precious Metals's dividend payout ratio is currently 17.29%.

Analyst Upgrades and Downgrades

WPM has been the subject of several analyst reports. Weiss Ratings raised Wheaton Precious Metals from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday. Jefferies Financial Group dropped their target price on Wheaton Precious Metals from $182.00 to $177.00 and set a "buy" rating on the stock in a report on Monday, July 6th. Scotiabank reduced their price target on Wheaton Precious Metals from $180.00 to $175.00 and set a "sector outperform" rating on the stock in a research report on Tuesday, July 14th. UBS Group decreased their price target on Wheaton Precious Metals from $165.00 to $150.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Finally, Royal Bank Of Canada increased their price objective on shares of Wheaton Precious Metals from $160.00 to $165.00 and gave the company an "outperform" rating in a research report on Wednesday, September 16th. Eleven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $166.00.

Institutional Investors Weigh In On Wheaton Precious Metals

A number of hedge funds have recently bought and sold shares of the business. Parvin Asset Management LLC increased its position in Wheaton Precious Metals by 0.6% in the fourth quarter. Parvin Asset Management LLC now owns 11,925 shares of the company's stock worth $1,401,000 after buying an additional 75 shares during the period. Cornerstone Financial Management LLC boosted its holdings in shares of Wheaton Precious Metals by 16.5% during the second quarter. Cornerstone Financial Management LLC now owns 565 shares of the company's stock valued at $63,000 after acquiring an additional 80 shares during the period. J.W. Cole Advisors Inc. boosted its holdings in shares of Wheaton Precious Metals by 0.8% during the fourth quarter. J.W. Cole Advisors Inc. now owns 11,926 shares of the company's stock valued at $1,343,000 after acquiring an additional 91 shares during the period. Hollencrest Capital Management grew its position in shares of Wheaton Precious Metals by 73.5% during the first quarter. Hollencrest Capital Management now owns 236 shares of the company's stock worth $31,000 after acquiring an additional 100 shares during the last quarter. Finally, O Domhnaill Enterprises Inc. grew its position in shares of Wheaton Precious Metals by 0.3% during the first quarter. O Domhnaill Enterprises Inc. now owns 31,690 shares of the company's stock worth $4,152,000 after acquiring an additional 101 shares during the last quarter. Institutional investors and hedge funds own 70.34% of the company's stock.

Wheaton Precious Metals Company Profile

Wheaton Precious Metals Corp. NYSE: WPM is a precious metals streaming company headquartered in Vancouver, British Columbia. Rather than operating mines directly, the company provides upfront financing to mining companies in exchange for the right to purchase a portion of the future production from specific mining projects at predetermined prices.

Wheaton's streaming portfolio is primarily focused on gold and silver, with additional exposure to palladium and cobalt through certain agreements.

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