UBS Group Forecasts Strong Price Appreciation for Intrepid Potash (NYSE:IPI) Stock

Key Points

• UBS raised its price target to $25 (from $24) but kept a "sell" rating, a target that implies roughly a 39.4% downside from the stock's current price and matches the consensus target of $25.
• The stock jumped about 14.5% to $41.28 after Intrepid reported an EPS beat of $0.49 vs. $0.26 and revenue of $75.9M, though the company still showed a negative net margin (-70.24%) and analysts project -$0.17 EPS for the year.
• Institutional investors own roughly 56.13% of the company, with several funds (including GSA Capital, American Century and Squarepoint) significantly increasing positions, indicating notable institutional inflows despite mixed analyst sentiment.

Intrepid Potash (NYSE:IPI - Get Free Report) had its price target lifted by investment analysts at UBS Group from $24.00 to $25.00 in a report released on Thursday,Benzinga reports. The firm presently has a "sell" rating on the basic materials company's stock. UBS Group's target price would suggest a potential downside of 39.44% from the company's current price.

Several other brokerages also recently commented on IPI. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Intrepid Potash in a research note on Thursday, January 22nd. Wall Street Zen cut Intrepid Potash from a "buy" rating to a "hold" rating in a research note on Saturday, November 8th. One research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Sell" and a consensus target price of $25.00.

Intrepid Potash Trading Up 14.5%

IPI stock traded up $5.22 during midday trading on Thursday, hitting $41.28. The company had a trading volume of 194,174 shares, compared to its average volume of 190,243. The stock has a market cap of $554.39 million, a price-to-earnings ratio of -2.72 and a beta of 1.53. Intrepid Potash has a 52 week low of $22.55 and a 52 week high of $42.86. The stock's 50 day moving average price is $32.45 and its 200 day moving average price is $29.33.

Intrepid Potash (NYSE:IPI - Get Free Report) last issued its earnings results on Wednesday, March 4th. The basic materials company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.26 by $0.23. Intrepid Potash had a negative net margin of 70.24% and a positive return on equity of 2.32%. The company had revenue of $75.88 million for the quarter, compared to the consensus estimate of $65.25 million. Analysts predict that Intrepid Potash will post -0.17 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. GSA Capital Partners LLP grew its holdings in Intrepid Potash by 350.2% in the third quarter. GSA Capital Partners LLP now owns 86,945 shares of the basic materials company's stock worth $2,659,000 after purchasing an additional 67,631 shares during the period. American Century Companies Inc. boosted its position in shares of Intrepid Potash by 24.7% in the 2nd quarter. American Century Companies Inc. now owns 230,113 shares of the basic materials company's stock worth $8,222,000 after purchasing an additional 45,577 shares in the last quarter. Squarepoint Ops LLC boosted its position in shares of Intrepid Potash by 266.3% in the 2nd quarter. Squarepoint Ops LLC now owns 56,389 shares of the basic materials company's stock worth $2,015,000 after purchasing an additional 40,994 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Intrepid Potash in the 2nd quarter worth approximately $541,000. Finally, Azarias Capital Management L.P. increased its position in Intrepid Potash by 64.9% during the 3rd quarter. Azarias Capital Management L.P. now owns 259,788 shares of the basic materials company's stock valued at $7,944,000 after buying an additional 102,266 shares in the last quarter. Hedge funds and other institutional investors own 56.13% of the company's stock.

Intrepid Potash Company Profile

Intrepid Potash, Inc is a leading U.S.-based producer and marketer of potash and related specialty fertilizer products. The company's primary business centers on potassium chloride, a key nutrient used in agricultural applications to enhance crop yield and quality. In addition to potash, Intrepid Potash produces magnesium chloride and sodium chloride, which serve a variety of markets including de-icing, dust control and industrial chemical production.

Intrepid Potash operates through a combination of solution mining, solar evaporation and conventional underground mining techniques.

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