Freeport-McMoRan (NYSE:FCX) Reaches New 1-Year High – Here’s Why

Shares of Freeport-McMoRan Inc. (NYSE:FCX) reached a new 52-week high on Friday . The company traded as high as $53.23 and last traded at $53.2020, with a volume of 133642 shares. The stock had previously closed at $51.92.

Analyst Ratings Changes

Several brokerages have recently weighed in on FCX. Weiss Ratings reissued a “hold (c)” rating on shares of Freeport-McMoRan in a research report on Wednesday, October 8th. Dbs Bank decreased their target price on Freeport-McMoRan from $51.00 to $48.00 in a research report on Thursday, October 2nd. Bank of America raised Freeport-McMoRan from a “neutral” rating to a “buy” rating and set a $42.00 price target for the company in a report on Tuesday, September 30th. HSBC decreased their price objective on Freeport-McMoRan from $50.00 to $48.00 and set a “buy” rating on the stock in a report on Wednesday, November 19th. Finally, Jefferies Financial Group upped their price target on shares of Freeport-McMoRan from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, December 8th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $49.49.

Freeport-McMoRan Trading Up 2.5%

The company has a debt-to-equity ratio of 0.29, a current ratio of 2.45 and a quick ratio of 1.19. The firm’s 50-day simple moving average is $43.32 and its 200 day simple moving average is $43.03. The firm has a market capitalization of $76.44 billion, a price-to-earnings ratio of 37.39, a P/E/G ratio of 1.17 and a beta of 1.49.

Freeport-McMoRan (NYSE:FCX) last posted its earnings results on Thursday, October 23rd. The natural resource company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.09. Freeport-McMoRan had a net margin of 7.97% and a return on equity of 7.84%. The firm had revenue of $6.97 billion during the quarter, compared to analysts’ expectations of $6.74 billion. During the same quarter in the prior year, the business earned $0.38 earnings per share. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. Equities analysts expect that Freeport-McMoRan Inc. will post 1.68 earnings per share for the current year.

Freeport-McMoRan Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Thursday, January 15th will be given a $0.075 dividend. The ex-dividend date is Thursday, January 15th. This represents a $0.30 annualized dividend and a yield of 0.6%. Freeport-McMoRan’s dividend payout ratio (DPR) is currently 21.13%.

Insider Transactions at Freeport-McMoRan

In related news, CAO Ellie L. Mikes sold 9,572 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $47.66, for a total value of $456,201.52. Following the sale, the chief accounting officer directly owned 38,761 shares in the company, valued at $1,847,349.26. This represents a 19.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Stephen T. Higgins sold 28,423 shares of the stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $47.99, for a total transaction of $1,364,019.77. Following the sale, the chief accounting officer directly owned 105,294 shares of the company’s stock, valued at $5,053,059.06. This represents a 21.26% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.75% of the company’s stock.

Hedge Funds Weigh In On Freeport-McMoRan

Hedge funds and other institutional investors have recently bought and sold shares of the company. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Freeport-McMoRan in the 3rd quarter worth about $25,000. Twin Peaks Wealth Advisors LLC purchased a new position in Freeport-McMoRan in the second quarter worth $28,000. Salomon & Ludwin LLC raised its stake in shares of Freeport-McMoRan by 1,962.9% during the 3rd quarter. Salomon & Ludwin LLC now owns 722 shares of the natural resource company’s stock worth $29,000 after purchasing an additional 687 shares during the period. JPL Wealth Management LLC purchased a new position in Freeport-McMoRan in the third quarter valued at about $33,000. Finally, Pilgrim Partners Asia Pte Ltd bought a new position in Freeport-McMoRan during the third quarter valued at $36,000. Institutional investors and hedge funds own 80.77% of the company’s stock.

About Freeport-McMoRan

Freeport-McMoRan Inc is a U.S.-based natural resources company primarily engaged in the exploration, mining and processing of copper, gold and molybdenum. Its operations encompass large-scale open-pit and underground mining as well as associated concentrator and milling facilities. The company produces copper in the form of concentrates and cathodes, and also recovers gold and molybdenum as co-products; its business model includes exploration, development, mining, beneficiation and the sale of bulk commodities to smelters and industrial customers.

Freeport-McMoRan conducts operations and development activities across multiple geographies, with substantial assets in the Americas and Indonesia.