Here’s how investors should make decisions about buying, holding or selling Freeport-McMoRan Inc. (NYSE:FCX) stock. On Thursday, shares of Freeport-McMoRan Inc. (NYSE:FCX) closed lower after an active session. The shares dropped -0.05 points or -0.42 percent at $11.86 with a heavy trade volume of 25 million shares. After opening the session at $11.85, the shares went as high as $12.14 and as low as $11.8, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17.2 billion and now has 1.45 billion shares outstanding. Freeport-McMoRan Inc. (FCX) stock has gained 5.89 percent of market value in 21 trading days.
FCX stock has a trailing 3-year beta of 2.19, 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 $1.7 a share in the trailing twelve months. The stock’s value has surged 15.03 percent year to date (YTD) against a decline of -36.71 percent in 12 month’s time. The company’s shares still trade -39.92 percent away from its 1-year high of $19.74 and 23.54 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.
Freeport-McMoRan Inc. (FCX) will probably climb 27.07 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $22 price as 12-month high target. This represents a whopping 85.5 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $14, which represents a return potential of 18.04 percent when compared to the closing price of the stock of $11.86 on Thursday, February 07. The lowest price target for the stock is $11 — slightly more than -7.25 percent from FCX’s current share price.
History has shown that shares in Freeport-McMoRan Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. Investors will get their next glimpse of FCX’s Q1 earnings on April 23. Analysts are forecasting revenue to suffer decline of -23.3 percent to $3.73B in the fiscal first quarter, while earnings are seen soaring by nearly -73.91 percent to $0.12 per share. It earned $0.11 per share, worse than the $0.18, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.68B, worse than the $3.78B analysts expected. Earnings are estimated to increase by 131.6 percent this year, 59.56 percent next year and continue to increase by 0 percent annually for the next 5 years.
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 6.82 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 -38.89 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 -21.8 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 -18.98 percent since the reporting date. Whitmire C Donald Jr now left with a stake of 73.56 thousand FCX stock worth $872.43 thousand after the insider selling.
The stock is currently hovering around the first support level of $11.73. Below this, the next support is placed in the zone of $11.59. Till the time, the FCX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.5 on daily chart, which may remain a cause for concern. If the price breaks below $11.59 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $12.07 mark may result into a pull-back move towards $12.27 level.
Further, it is sporting a 0.89 on the Price-to-Sales ratio. Compare this with the industry average P/S of 13.56. 18 percent is the gross profit margin for Freeport-McMoRan Inc. and operating margin sits at 28.6 percent. Along with this, the net profit margin is 14.8 percent.