Wheaton Precious Metals Corp. (NYSE:WPM) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Wheaton Precious Metals a “Moderate Buy”: Twelve of 13 analysts recommend buying the stock, with an average 12-month price target of $165.55, despite several recent target-price reductions.
• Institutional ownership is substantial at 70.34%: Major investors including Norges Bank, BlackRock, and Canada Pension Plan Investment Board recently established large positions in WPM.
• Recent results exceeded expectations: Wheaton reported quarterly EPS of $1.19 versus the $1.15 consensus estimate, while revenue rose 84.7% year over year; the company also declared a quarterly dividend of $0.195 per share.

Wheaton Precious Metals Corp. (NYSE:WPM - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the thirteen brokerages that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold rating and twelve have assigned a buy rating to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $165.5455.

A number of research analysts recently weighed in on the company. Scotiabank reduced their price objective on Wheaton Precious Metals from $180.00 to $175.00 and set a "sector outperform" rating for the company in a research report on Tuesday, July 14th. Weiss Ratings downgraded Wheaton Precious Metals from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Royal Bank Of Canada cut their target price on Wheaton Precious Metals from $165.00 to $160.00 and set an "outperform" rating on the stock in a research note on Thursday, July 9th. UBS Group reduced their price target on Wheaton Precious Metals from $165.00 to $150.00 and set a "buy" rating for the company in a report on Tuesday, June 30th. Finally, Wall Street Zen lowered Wheaton Precious Metals from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in WPM. Norges Bank purchased a new stake in Wheaton Precious Metals during the 4th quarter valued at $864,977,000. BlackRock Inc. purchased a new position in shares of Wheaton Precious Metals in the second quarter worth $581,250,000. Canada Pension Plan Investment Board bought a new position in shares of Wheaton Precious Metals during the second quarter valued at $351,708,000. Bank of America Corp DE bought a new position in shares of Wheaton Precious Metals during the second quarter valued at $328,309,000. Finally, Legal & General Group Plc purchased a new stake in shares of Wheaton Precious Metals during the second quarter valued at $320,838,000. Institutional investors own 70.34% of the company's stock.

Wheaton Precious Metals Price Performance

Shares of NYSE WPM opened at $132.69 on Wednesday. Wheaton Precious Metals has a fifty-two week low of $90.94 and a fifty-two week high of $165.76. The company has a 50 day simple moving average of $116.80 and a two-hundred day simple moving average of $130.20. The company has a market capitalization of $60.26 billion, a price-to-earnings ratio of 29.42, a P/E/G ratio of 2.38 and a beta of 0.55. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.47 and a current ratio of 0.47.

Wheaton Precious Metals (NYSE:WPM - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.04. The firm had revenue of $878.00 million during the quarter, compared to analyst estimates of $879.29 million. Wheaton Precious Metals had a net margin of 64.66% and a return on equity of 21.97%. The business's revenue was up 84.7% on a year-over-year basis. During the same period last year, the business earned $0.63 earnings per share. Analysts expect that Wheaton Precious Metals will post 4.79 EPS for the current fiscal year.

Wheaton Precious Metals Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.195 per share. This represents a $0.78 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Thursday, August 20th. Wheaton Precious Metals's dividend payout ratio (DPR) is currently 17.29%.

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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