A Lot of Investors Are Still Watching Freeport-McMoRan Inc. (FCX)

Freeport-McMoRan Inc. (FCX) will probably climb 32.41 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 115.52 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $14.25, which represents a return potential of 22.84 percent when compared to the closing price of the stock of $11.6 on Friday, January 11. The lowest price target for the stock is $8.2 — slightly more than -29.31 percent from FCX’s current share price.

The stock is currently hovering around the first support level of $11.4. Below this, the next support is placed in the zone of $11.19. Till the time, the FCX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.93 on daily chart, which may remain a cause for concern. If the price breaks below $11.19 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.77 mark may result into a pull-back move towards $11.94 level.

On 11th of January, Freeport-McMoRan Inc. (NYSE:FCX) shares ended higher after a volatile session. The shares accumulated 0.09 points or 0.78 percent at $11.6 with a heavy trade volume of 21.533 million shares. After opening the session at $11.51, the shares went as high as $11.74 and as low as $11.365, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.8 billion and now has 1.45 billion shares outstanding. Freeport-McMoRan Inc. (FCX) stock has gained 7.81 percent of market value in 21 trading days.

FCX stock has a trailing 3-year beta of 2.27, 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 surged 12.51 percent year to date (YTD) against a decline of -40.54 percent in 12 month’s time. The company’s shares still trade -42.72 percent away from its 1-year high of $20.25 and 20.83 percent up from 52-week low of $9.60. 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 0.84 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.

Let’s take a look at some insider activity at Freeport-McMoRan Inc. (NYSE:FCX) and see the pattern. 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 grew 4.04 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 -40.48 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 -23.83 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 -21.09 percent since the reporting date. Whitmire C Donald Jr now left with a stake of 73.56 thousand FCX stock worth $853.31 thousand after the insider selling.