HudBay Minerals (NYSE:HBM) Trading Up 7.5% - Should You Buy?

Key Points

• HudBay Minerals shares rose 7.5% to about $29.48, although trading volume was 88% below the stock’s average daily volume.
• Analyst sentiment remains favorable, with 10 Buy ratings and two Holds producing a consensus “Moderate Buy” rating and an average price target of $31.33.
• The company exceeded quarterly EPS expectations, reporting $0.28 versus $0.26 expected, while revenue increased 17.7% year over year to $631.3 million. HudBay also declared a quarterly dividend of $0.01 per share, equal to a 0.1% yield.

Shares of HudBay Minerals Inc (NYSE:HBM - Get Free Report) TSE: HBM traded up 7.5% during mid-day trading on Tuesday . The company traded as high as $29.35 and last traded at $29.4750. 672,217 shares traded hands during trading, a decline of 88% from the average daily volume of 5,595,644 shares. The stock had previously closed at $27.43.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Jefferies Financial Group reaffirmed a "buy" rating on shares of HudBay Minerals in a report on Monday, July 6th. Wall Street Zen downgraded HudBay Minerals from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Scotiabank reaffirmed an "outperform" rating on shares of HudBay Minerals in a research report on Thursday, July 30th. Barclays boosted their price objective on HudBay Minerals from $30.00 to $32.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Finally, Weiss Ratings lowered shares of HudBay Minerals from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, August 13th. Ten research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $31.33.

HudBay Minerals Price Performance

The company has a market cap of $12.94 billion, a P/E ratio of 17.14, a P/E/G ratio of 0.44 and a beta of 1.54. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.93 and a current ratio of 2.24. The firm's fifty day moving average is $25.00 and its two-hundred day moving average is $24.67.

HudBay Minerals (NYSE:HBM - Get Free Report) TSE: HBM last posted its quarterly earnings results on Wednesday, July 29th. The mining company reported $0.28 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.02. HudBay Minerals had a return on equity of 9.47% and a net margin of 27.48%.The business had revenue of $631.30 million for the quarter, compared to analysts' expectations of $632.43 million. During the same period last year, the firm earned $0.19 earnings per share. The business's quarterly revenue was up 17.7% on a year-over-year basis. As a group, analysts anticipate that HudBay Minerals Inc will post 1.51 earnings per share for the current fiscal year.

HudBay Minerals Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Tuesday, September 8th will be paid a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.1%. The ex-dividend date of this dividend is Tuesday, September 8th. HudBay Minerals's dividend payout ratio (DPR) is 1.76%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HBM. Rakuten Securities Inc. bought a new stake in shares of HudBay Minerals during the second quarter valued at approximately $28,000. Fiduciary Financial Advisors bought a new position in shares of HudBay Minerals during the second quarter worth $32,000. EFG International AG bought a new position in shares of HudBay Minerals during the second quarter worth $38,000. Allworth Financial LP grew its stake in HudBay Minerals by 107.9% during the third quarter. Allworth Financial LP now owns 1,990 shares of the mining company's stock valued at $30,000 after acquiring an additional 1,033 shares in the last quarter. Finally, Bard Associates Inc. bought a new stake in HudBay Minerals in the 2nd quarter valued at $53,000. 57.82% of the stock is owned by hedge funds and other institutional investors.

About HudBay Minerals

HudBay Minerals Inc is a Canada-based mining company engaged in the exploration, development and production of base and precious metals. Its primary products include copper, zinc, gold and silver concentrates, which are sold to smelters and refiners worldwide. The company's operations span multiple stages of the mining cycle, from resource definition and feasibility studies to mine construction, extraction and reclamation.

The company traces its roots back to 1927, when it was established as Hudson Bay Mining & Smelting Co Limited.

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