Freeport-McMoRan (NYSE:FCX) Stock Falls 3.8% - Here's Why

Key Points

• Freeport-McMoRan shares fell 3.8% to about $69.65 amid technical concerns that its recent rally may be losing momentum and could enter a consolidation phase.
• Despite the decline, analysts raised earnings forecasts and price targets: RBC, UBS and Citigroup lifted targets as high as $88, while the stock maintained a Moderate Buy consensus rating with an average target of $76.22.
• The company reported quarterly earnings and revenue above estimates and declared a $0.075 quarterly dividend, but insiders have sold more than 110,000 shares over the past 90 days.

Freeport-McMoRan Inc. (NYSE:FCX - Get Free Report) fell 3.8% on Wednesday. The stock traded as low as $68.68 and last traded at $69.6460. 12,415,952 shares traded hands during mid-day trading, a decline of 23% from the average session volume of 16,157,108 shares. The stock had previously closed at $72.42.

Freeport-McMoRan News Summary

Here are the key news stories impacting Freeport-McMoRan this week:

• Positive Sentiment: Scotiabank raised its earnings forecasts. The bank increased its FY2026 EPS estimate to $3.35 from $3.06 and its FY2027 estimate to $2.86 from $2.62. The FY2026 projection is also well above the current consensus estimate of $2.87, suggesting analysts see improving earnings potential for the copper and gold producer.
• Positive Sentiment: Erste Group Bank also lifted its forecasts and maintained a Buy rating. Erste raised its FY2026 EPS estimate to $3.10 from $3.05 and its FY2027 estimate to $4.32 from $4.00. These revisions reinforce the view that commodity prices, production, or operating performance could support stronger future results.
• Positive Sentiment: FCX is scheduled to pay a quarterly dividend of $0.07 on November 2. The payout provides modest shareholder income and signals continued capital returns, although the dividend is unlikely to be a major stock-price catalyst. Freeport-McMoRan Inc. to Issue Quarterly Dividend
• Neutral Sentiment: After-hours trading information offered no significant new fundamental development. A report noted FCX trading at approximately €64.55 after hours, but the item did not identify a company announcement or change to the investment outlook. Freeport-McMoRan stock after-hours
• Negative Sentiment: Technical analysts warned that FCX’s rally looks tired and consolidation may follow. This suggests near-term upside could be constrained after the stock’s strong advance, even as longer-term earnings expectations improve. Freeport-McMoRan: Rally Looks Tired

Analysts Set New Price Targets

FCX has been the topic of a number of research analyst reports. Royal Bank Of Canada lifted their price target on Freeport-McMoRan from $73.00 to $85.00 and gave the stock a "sector perform" rating in a research note on Wednesday, September 16th. Weiss Ratings raised Freeport-McMoRan from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. UBS Group increased their price objective on Freeport-McMoRan from $77.00 to $88.00 and gave the company a "buy" rating in a research note on Thursday, October 8th. Citigroup raised their price objective on Freeport-McMoRan from $66.00 to $84.00 and gave the company a "buy" rating in a report on Monday, October 5th. Finally, Morgan Stanley lifted their target price on shares of Freeport-McMoRan from $70.00 to $75.00 and gave the stock an "equal weight" rating in a research note on Wednesday, October 7th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Freeport-McMoRan has an average rating of "Moderate Buy" and an average target price of $76.22.

Freeport-McMoRan Stock Performance

The company has a market cap of $100.01 billion, a PE ratio of 34.31, a PEG ratio of 0.70 and a beta of 1.39. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.92 and a current ratio of 2.07. The firm's 50 day moving average is $72.08 and its 200-day moving average is $66.41.

Freeport-McMoRan (NYSE:FCX - Get Free Report) last released its earnings results on Thursday, July 23rd. The natural resource company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.62 by $0.12. The business had revenue of $7.03 billion for the quarter, compared to analyst estimates of $6.62 billion. Freeport-McMoRan had a net margin of 11.39% and a return on equity of 10.63%. The business's revenue was down 7.3% on a year-over-year basis. During the same period last year, the company posted $0.54 EPS. On average, research analysts anticipate that Freeport-McMoRan Inc. will post 2.87 earnings per share for the current fiscal year.

Freeport-McMoRan Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Thursday, October 15th will be issued a $0.0750 dividend. This represents a $0.30 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, October 15th. Freeport-McMoRan's dividend payout ratio (DPR) is currently 14.78%.

Insider Buying and Selling

In other Freeport-McMoRan news, EVP Douglas Currault, II sold 80,000 shares of the business's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $78.56, for a total transaction of $6,284,800.00. Following the transaction, the executive vice president owned 211,016 shares of the company's stock, valued at approximately $16,577,416.96. The trade was a 27.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Lydia Kennard sold 3,798 shares of the company's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $79.11, for a total value of $300,459.78. Following the completion of the sale, the director owned 122,702 shares of the company's stock, valued at approximately $9,706,955.22. The trade was a 3.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 110,398 shares of company stock worth $8,387,271. 0.73% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Freeport-McMoRan

A number of hedge funds have recently modified their holdings of FCX. State Street Corp boosted its holdings in shares of Freeport-McMoRan by 3.6% during the second quarter. State Street Corp now owns 66,485,424 shares of the natural resource company's stock worth $4,181,268,000 after purchasing an additional 2,300,416 shares during the last quarter. Bank of America Corp DE grew its position in shares of Freeport-McMoRan by 20.0% in the first quarter. Bank of America Corp DE now owns 42,345,502 shares of the natural resource company's stock valued at $2,489,069,000 after purchasing an additional 7,044,775 shares during the period. Wellington Management Group LLP increased its stake in Freeport-McMoRan by 13.8% in the second quarter. Wellington Management Group LLP now owns 14,918,066 shares of the natural resource company's stock valued at $938,197,000 after purchasing an additional 1,810,698 shares during the last quarter. Amundi increased its stake in Freeport-McMoRan by 10.5% in the second quarter. Amundi now owns 11,819,898 shares of the natural resource company's stock valued at $743,353,000 after purchasing an additional 1,125,982 shares during the last quarter. Finally, Jupiter Topco LLC acquired a new position in Freeport-McMoRan in the second quarter valued at $739,890,000. Hedge funds and other institutional investors own 80.77% of the company's stock.

About Freeport-McMoRan

Freeport-McMoRan Inc NYSE: FCX is a leading international mining company focused primarily on the exploration, development and production of copper, gold and molybdenum. Copper is its principal product and is used in electrical systems, construction, transportation, renewable energy infrastructure and other industrial applications. The company also produces copper cathodes and concentrates, gold, molybdenum products and certain quantities of silver and other byproducts.

Freeport-McMoRan operates a portfolio of mining and processing assets in North America, South America and Indonesia.

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