Scotiabank Has Lowered Expectations for Wheaton Precious Metals (NYSE:WPM) Stock Price

Key Points

• Scotiabank trimmed its price target on Wheaton Precious Metals from $180 to $175, while keeping a sector outperform rating. The new target still implies about 60.5% upside from the prior close.
• Broker sentiment remains broadly positive: 12 analysts rate WPM a Buy and one rates it Hold, with a moderate buy consensus price target of $161.09. Recent notes from other firms were mixed, with some modest target cuts and others raising or maintaining bullish ratings.
• The stock was trading at $109.01 on Tuesday, below both its 52-week high of $165.76 and its average analyst target range. The company also recently reported better-than-expected quarterly results, including EPS of $1.28 versus estimates of $1.24 and revenue up 91.7% year over year.

Wheaton Precious Metals (NYSE:WPM - Get Free Report) had its price objective lowered by analysts at Scotiabank from $180.00 to $175.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has a "sector outperform" rating on the stock. Scotiabank's price target indicates a potential upside of 60.53% from the company's previous close.

WPM has been the topic of a number of other research reports. TD Cowen increased their price objective on Wheaton Precious Metals from $164.00 to $165.00 and gave the stock a "buy" rating in a research report on Monday, March 16th. Royal Bank Of Canada reduced their price objective on shares of Wheaton Precious Metals from $165.00 to $160.00 and set an "outperform" rating on the stock in a research report on Thursday. BMO Capital Markets initiated coverage on Wheaton Precious Metals in a research report on Thursday, April 9th. They set an "outperform" rating and a $240.00 price target on the stock. TD Securities lifted their price objective on Wheaton Precious Metals from $164.00 to $165.00 and gave the company a "buy" rating in a research note on Monday, March 16th. Finally, Jefferies Financial Group dropped their price objective on Wheaton Precious Metals from $182.00 to $177.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Twelve analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Wheaton Precious Metals has an average rating of "Moderate Buy" and a consensus price target of $161.09.

Wheaton Precious Metals Price Performance

Shares of WPM traded up $1.18 during mid-day trading on Tuesday, hitting $109.01. The stock had a trading volume of 806,636 shares, compared to its average volume of 2,320,310. Wheaton Precious Metals has a 52 week low of $87.96 and a 52 week high of $165.76. The business has a fifty day moving average price of $122.63 and a 200-day moving average price of $132.46. The firm has a market cap of $49.51 billion, a P/E ratio of 27.51, a PEG ratio of 1.89 and a beta of 0.55.

Wheaton Precious Metals (NYSE:WPM - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.24 by $0.04. Wheaton Precious Metals had a return on equity of 20.20% and a net margin of 65.55%.The company had revenue of $901.47 million during the quarter, compared to the consensus estimate of $868.35 million. During the same quarter in the prior year, the company earned $0.55 EPS. The firm's quarterly revenue was up 91.7% compared to the same quarter last year. As a group, research analysts expect that Wheaton Precious Metals will post 4.78 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in WPM. AQR Capital Management LLC bought a new stake in Wheaton Precious Metals in the 1st quarter valued at $331,000. Focus Partners Wealth grew its position in shares of Wheaton Precious Metals by 10.7% during the first quarter. Focus Partners Wealth now owns 11,223 shares of the company's stock valued at $871,000 after purchasing an additional 1,081 shares in the last quarter. Acadian Asset Management LLC purchased a new position in shares of Wheaton Precious Metals during the first quarter valued at about $209,000. Sivia Capital Partners LLC bought a new stake in shares of Wheaton Precious Metals in the second quarter worth about $239,000. Finally, Rhumbline Advisers lifted its position in shares of Wheaton Precious Metals by 28.3% in the second quarter. Rhumbline Advisers now owns 2,952 shares of the company's stock worth $265,000 after buying an additional 652 shares in the last quarter. 70.34% of the stock is owned by hedge funds and other institutional investors.

About Wheaton Precious Metals

Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company that acquires and manages long-term purchase agreements for metals produced by mining companies. Rather than operating mines, Wheaton provides upfront and ongoing financing to miners in exchange for the right to purchase a portion of the metals produced — typically silver and gold, and occasionally other precious metals — at predetermined prices. This streaming business model offers investors exposure to metal production with reduced operating and capital-cost risk compared with traditional mining companies.

The company's activities center on structuring and maintaining a diversified portfolio of streaming agreements across multiple jurisdictions.

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