Freeport-McMoRan (NYSE:FCX) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Freeport-McMoRan Inc. (NYSE:FCX) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $47.94, but opened at $50.00. Freeport-McMoRan shares last traded at $48.29, with a volume of 1,600,748 shares trading hands.

The natural resource company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.01. The business had revenue of $6.79 billion for the quarter, compared to analyst estimates of $6.45 billion. Freeport-McMoRan had a net margin of 7.83% and a return on equity of 7.60%. The business’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.39 EPS.

Freeport-McMoRan Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 1st. Investors of record on Tuesday, October 15th will be issued a dividend of $0.075 per share. The ex-dividend date is Tuesday, October 15th. This represents a $0.30 annualized dividend and a dividend yield of 0.62%. Freeport-McMoRan’s payout ratio is 26.55%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on FCX shares. UBS Group upgraded shares of Freeport-McMoRan from a “neutral” rating to a “buy” rating and lifted their target price for the company from $54.00 to $55.00 in a report on Wednesday, September 4th. Raymond James boosted their price objective on shares of Freeport-McMoRan from $53.00 to $55.00 and gave the stock an “outperform” rating in a report on Monday, September 23rd. JPMorgan Chase & Co. boosted their price objective on shares of Freeport-McMoRan from $53.00 to $55.00 and gave the stock a “neutral” rating in a report on Tuesday, October 15th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $60.00 price objective on shares of Freeport-McMoRan in a report on Wednesday, July 24th. Finally, Morgan Stanley cut their price objective on shares of Freeport-McMoRan from $60.00 to $58.00 and set an “overweight” rating on the stock in a report on Thursday, September 19th. Six investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, Freeport-McMoRan presently has an average rating of “Moderate Buy” and a consensus price target of $53.92.

Institutional Investors Weigh In On Freeport-McMoRan

A number of institutional investors have recently modified their holdings of the business. Hazlett Burt & Watson Inc. boosted its stake in Freeport-McMoRan by 1,170.7% during the 2nd quarter. Hazlett Burt & Watson Inc. now owns 521 shares of the natural resource company’s stock valued at $25,000 after purchasing an additional 480 shares during the period. Spectrum Wealth Counsel LLC acquired a new position in Freeport-McMoRan during the 2nd quarter valued at about $25,000. Matrix Trust Co acquired a new position in Freeport-McMoRan during the 3rd quarter valued at about $25,000. LRI Investments LLC acquired a new position in Freeport-McMoRan during the 1st quarter valued at about $26,000. Finally, Lynx Investment Advisory acquired a new position in Freeport-McMoRan during the 2nd quarter valued at about $26,000. Institutional investors own 80.77% of the company’s stock.

Freeport-McMoRan Price Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.34 and a current ratio of 2.40. The business’s 50 day simple moving average is $45.61 and its 200-day simple moving average is $47.86. The stock has a market capitalization of $69.71 billion, a price-to-earnings ratio of 42.95, a price-to-earnings-growth ratio of 2.03 and a beta of 1.90.

About Freeport-McMoRan

Freeport-McMoRan Inc engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals. The company's assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Chino and Tyrone in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile.