Analysts Have Turned On Freeport-McMoRan Inc. (FCX)

Taking everything into account, Freeport-McMoRan Inc. (NYSE:FCX) scores 96% Sell on the technical side. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the FCX’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 18639760 shares. FCX stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 20310191 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $10.87. Below this, the next support is placed in the zone of $10.58. Till the time, the FCX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 42.64 on daily chart, which may remain a cause for concern. If the price breaks below $10.58 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.3 mark may result into a pull-back move towards $11.44 level.

Freeport-McMoRan Inc. (FCX) is projected to climb by 46.46 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $25-month high price target. This represents a whopping 124.22 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15, which represents a return potential of 34.53 percent when compared to the closing price of the stock of $11.15 on Thursday, December 06. The lowest price target for the stock is $8.2 — slightly more than -26.46 percent from FCX’s current share price.

Here’s a rundown of insider trading activity for sense of Freeport-McMoRan Inc. (NYSE:FCX). The earliest insider trade took place on 10/30/2018. Mather Courtney parted with a total of 75 thousand shares of company at average share price of $11.15. The total for the sales was set at $836.25 thousand. After this transaction, the Director account balance stood at 152.13 thousand shares. The stock lost 0 percent since that insider sale. On 01/31/2018, Whitmire C Donald Jr, VP & Controller Financial Rptg, sold 21.5 thousand shares at a price per share of $19.49. This removed 419.04 thousand shares from the insider’s fortune and the stock saw a -42.79 percent retreat in value since the news became public. This transaction left 62.06 thousand shares in the VP & Controller Financial Rptg account. On 09/07/2017, Pres & COO FM Americas Conger Harry M. Iv performed a purchase transaction worth $551.02 thousand. This purchase at $15.23 each has added 36.18 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -26.79 percent decrease since the transaction was reported. The insider now is left with 73.94 thousand shares remaining in the account. Whitmire C Donald Jr, who performs the VP & Controller Financial Rptg job, sold 1.05 thousand shares for $15.44 thousand. The disposal occurred on 08/21/2017 was priced at $14.7 per share. The share price plunged -24.15 percent since the reporting date. Whitmire C Donald Jr now left with a stake of 73.56 thousand FCX stock worth $820.21 thousand after the insider selling.

FCX shares dropped -0.35 points or -3.04 percent on Thursday to $11.15 with a heavy trade volume of 24.929 million shares. After opening the session at $11.04, the shares went as high as $11.16 and as low as $10.73, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.2 billion and now has 1.45 billion shares outstanding. Freeport-McMoRan Inc. (FCX) stock has lost -8.76 percent of market value in 21 trading days.

Analysts at RBC Capital Mkts cut their rating on shares of Freeport-McMoRan Inc. (NYSE:FCX) from Sector Perform to Underperform in their opinion released on November 07. Clarksons Platou analysts have downgraded their rating of FCX stock from Buy to Neutral in a separate flash note to investors on September 11. Analysts at BofA/Merrill issued an upgrade from Underperform to Neutral for the stock, in a research note that dated back to August 02.

FCX stock has a trailing 3-year beta of 2.48, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.89 a share in the trailing twelve months. The stock’s value has fallen -41.19 percent year to date (YTD) against a decline of -20.98 percent in 12 month’s time. The company’s shares still trade -44.94 percent away from its 1-year high of $20.25 and 5.29 percent up from 52-week low of $10.59. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Freeport-McMoRan Inc. (FCX) are trading at a P/E ratio of 5.95 times earnings reported for the past 12 months. The industry FCX operates in has an average P/E of 11.32. Its P/E ratio went as low as 14.19X and as high as 20.3 over the 5-year span. Further, it is sporting a 0.81 on the Price-to-Sales ratio. Compare this with the industry average P/S of 12.72. 33 percent is the gross profit margin for Freeport-McMoRan Inc. and operating margin sits at 29.7 percent. Along with this, the net profit margin is 15.7 percent.

FCX will be declaring its Q4 financial results on January 23. Analysts are forecasting revenue to suffer decline of -21.6 percent to $3.95B in the next fiscal quarter, while earnings are seen soaring by nearly -58.82 percent to $0.21 per share. History has shown that shares in Freeport-McMoRan Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.35 per share, better than the $0.33, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $4.91B, better than the $4.56B analysts expected. Earnings are estimated to increase by 131.6 percent this year, -46.96 percent next year and continue to increase by 5.3 percent annually for the next 5 years.