Wheaton Precious Metals Target of Unusually High Options Trading (NYSE:WPM)

Key Points

• Unusually high options activity: Investors purchased 11,170 put options on Wheaton Precious Metals, about 178% above its typical daily volume.
• Strong quarterly performance: Wheaton reported $1.19 in quarterly EPS, beating estimates, while revenue rose 84.7% year over year to $878 million. Shares traded at $157.93, near the company’s 12-month high.
• Analysts remain broadly positive: Twelve analysts rate the stock a Buy and one rates it a Hold, producing a “Moderate Buy” consensus and an average price target of $165.55. The company also declared a quarterly dividend of $0.195 per share.

Wheaton Precious Metals Corp. (NYSE:WPM - Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors acquired 11,170 put options on the stock. This represents an increase of approximately 178% compared to the typical daily volume of 4,025 put options.

Hedge Funds Weigh In On Wheaton Precious Metals

A number of hedge funds have recently made changes to their positions in the business. Assetmark Inc. raised its stake in Wheaton Precious Metals by 144.4% during the 4th quarter. Assetmark Inc. now owns 220 shares of the company's stock valued at $26,000 after purchasing an additional 130 shares during the period. Harvest Fund Management Co. Ltd boosted its stake in Wheaton Precious Metals by 100.0% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 234 shares of the company's stock worth $27,000 after purchasing an additional 117 shares during the period. Cary Street Partners Investment Advisory LLC bought a new position in Wheaton Precious Metals in the 4th quarter worth approximately $28,000. Cornerstone Planning Group LLC grew its holdings in Wheaton Precious Metals by 245.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 228 shares of the company's stock valued at $29,000 after buying an additional 162 shares in the last quarter. Finally, Navalign LLC purchased a new stake in Wheaton Precious Metals during the 4th quarter valued at approximately $30,000. Institutional investors own 70.34% of the company's stock.

Wheaton Precious Metals Price Performance

Shares of NYSE WPM traded up $0.15 during midday trading on Monday, reaching $157.93. The stock had a trading volume of 1,169,434 shares, compared to its average volume of 2,278,345. The stock has a 50-day moving average of $119.19 and a 200-day moving average of $130.47. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.47 and a current ratio of 0.47. The company has a market capitalization of $71.72 billion, a price-to-earnings ratio of 35.24, a price-to-earnings-growth ratio of 2.79 and a beta of 0.55. Wheaton Precious Metals has a 12-month low of $92.57 and a 12-month high of $165.76.

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 for the quarter, beating analysts' consensus estimates of $1.15 by $0.04. The company had revenue of $878.00 million for the quarter, compared to analysts' expectations of $879.29 million. Wheaton Precious Metals had a net margin of 64.66% and a return on equity of 21.97%. Wheaton Precious Metals's revenue for the quarter was up 84.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.63 EPS. As a group, research analysts anticipate that Wheaton Precious Metals will post 4.8 EPS for the current fiscal year.

Wheaton Precious Metals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.195 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $0.78 dividend on an annualized basis and a yield of 0.5%. Wheaton Precious Metals's dividend payout ratio (DPR) is currently 17.29%.

Analyst Ratings Changes

WPM has been the topic of a number of recent research reports. Jefferies Financial Group decreased their target price on Wheaton Precious Metals from $182.00 to $177.00 and set a "buy" rating on the stock in a report on Monday, July 6th. Bank of America cut their price target on Wheaton Precious Metals from $163.00 to $145.00 and set a "buy" rating for the company in a report 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 research report on Tuesday, June 30th. Scotiabank decreased their price objective on Wheaton Precious Metals from $180.00 to $175.00 and set a "sector outperform" rating on the stock in a research note on Tuesday, July 14th. Finally, Wall Street Zen cut Wheaton Precious Metals from a "buy" rating to a "hold" rating in a research report on Saturday, May 16th. Twelve equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Wheaton Precious Metals currently has an average rating of "Moderate Buy" and a consensus target price of $165.55.

Wheaton Precious Metals Company Profile

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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