Mosaic (NYSE:MOS) Stock Price Down 5.6% - Should You Sell?

Key Points

• Mosaic shares fell 5.6% to about $20.44, trading well below their 50-day and 200-day moving averages near $23.50.
• Analyst sentiment is mixed but leans cautious: the stock has an average “Hold” rating and a $27.17 price target, while some firms recently downgraded it to “Strong Sell.”
• Mosaic beat quarterly EPS expectations by $0.01, but revenue fell 6% year over year to $2.82 billion and net margins remained negative; the company continues to offer a quarterly dividend of $0.22 per share, yielding about 4.2%.

The Mosaic Company (NYSE:MOS - Get Free Report) was down 5.6% during trading on Thursday. The company traded as low as $20.75 and last traded at $20.4380. Approximately 853,593 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 8,686,782 shares. The stock had previously closed at $21.65.

Analyst Ratings Changes

Several research firms have commented on MOS. Wall Street Zen lowered shares of Mosaic from a "sell" rating to a "strong sell" rating in a report on Sunday, July 12th. KeyCorp started coverage on shares of Mosaic in a research report on Thursday, September 10th. They set a "sector weight" rating on the stock. Mizuho set a $25.00 price objective on shares of Mosaic in a research note on Wednesday, August 5th. Rothschild & Co Redburn initiated coverage on shares of Mosaic in a research report on Friday, June 26th. They set a "buy" rating and a $30.00 price objective for the company. Finally, Freedom Capital cut Mosaic from a "strong-buy" rating to a "strong sell" rating in a research note on Thursday, August 13th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $27.17.

Mosaic Stock Performance

The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.43 and a current ratio of 1.34. The firm has a market cap of $6.59 billion, a P/E ratio of -10.26, a P/E/G ratio of 6.15 and a beta of 0.83. The company's 50 day moving average is $23.68 and its 200 day moving average is $23.46.

Mosaic (NYSE:MOS - Get Free Report) last issued its earnings results on Tuesday, August 4th. The basic materials company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.01. Mosaic had a positive return on equity of 3.77% and a negative net margin of 5.21%.The business had revenue of $2.82 billion during the quarter, compared to analysts' expectations of $3.10 billion. During the same quarter in the prior year, the firm earned $0.51 EPS. The business's revenue for the quarter was down 6.0% compared to the same quarter last year. As a group, equities analysts predict that The Mosaic Company will post 0.36 earnings per share for the current fiscal year.

Mosaic Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 10th were given a dividend of $0.22 per share. The ex-dividend date was Thursday, September 10th. This represents a $0.88 annualized dividend and a yield of 4.2%. Mosaic's dividend payout ratio (DPR) is currently -43.56%.

Insider Transactions at Mosaic

In other Mosaic news, SVP Walter Precourt, III sold 23,000 shares of the company's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $22.12, for a total value of $508,760.00. Following the completion of the transaction, the senior vice president directly owned 116,198 shares in the company, valued at approximately $2,570,299.76. This represents a 16.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.31% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Fortress Financial Group LLC bought a new position in shares of Mosaic during the second quarter worth about $269,000. SJS Investment Consulting Inc. raised its holdings in Mosaic by 72.9% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,245 shares of the basic materials company's stock worth $32,000 after purchasing an additional 525 shares during the last quarter. Ameritas Advisory Services LLC bought a new position in Mosaic during the 2nd quarter worth approximately $32,000. Global Retirement Partners LLC acquired a new position in shares of Mosaic in the 2nd quarter worth approximately $46,000. Finally, Westpac Banking Corp bought a new stake in shares of Mosaic in the 4th quarter valued at $61,000. 77.54% of the stock is owned by institutional investors.

Mosaic Company Profile

The Mosaic Company is a global producer and marketer of concentrated phosphate and potash crop nutrients. Its products are used by farmers to support plant growth, improve yields and replenish essential nutrients in agricultural soils. Mosaic also produces phosphate-based animal feed ingredients and other crop nutrition products.

Mosaic operates an integrated business that includes mining, processing, manufacturing and distribution. Its phosphate operations are primarily located in the United States, while its potash operations include mining assets in Canada and the United States.

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