Stock analysts at Credit Suisse cut their rating on shares of Freeport-McMoRan Inc. (NYSE:FCX) from Neutral to a new rating of Underperform in their opinion released on January 14. BMO Capital Markets analysts bumped their recommendation on FCX stock from prior rating of Market Perform to Outperform in a separate flash note to investors on December 17. Analysts at BofA/Merrill issued an upgrade for the stock to Buy from previous rating of Neutral, in a research note that dated back to November 13.
Let’s take a glimpse at some insider activity at Freeport-McMoRan Inc. (NYSE:FCX) and observe the pattern. The earliest insider trade happened on 01/28/2020. STEPHENS JOHN JOSEPH gathered a total of 45 thousand shares of the firm at average share price of $11.19. The total amount for the purchase was set at $503.55 thousand. On completing this exchange, the Director account balance was 57.19 thousand shares. The stock grew 10.46 percent from that insider purchase. On 06/07/2019, QUIRK KATHLEEN L, EVP, CFO & Treasurer, did a purchase of 50 thousand shares at a price of $10.49 per share. This increased 524.5 thousand shares to the insider’s fortune and the stock experienced a 17.83 percent rally in price since the news became public. This exchange saw 920.77 thousand shares get into the EVP, CFO & Treasurer account. On 06/07/2019, Pres & COO FM Americas Conger Harry M. IV recorded a sale transaction valued at $1.63 million. The sale at $10.51 a share has eliminated 155 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 17.6 percent increase since the transaction reporting date. The company insider is left with 261.38 thousand shares remaining in the account. ADKERSON RICHARD C, who works as Vice Chairman, President & CEO at the company, performed a purchase of 172 thousand shares in a transaction worth $1.74 million. The acquisition recorded on 06/06/2019 was priced at $10.14 per share. The stock price soared 21.89 percent since the transaction. ADKERSON RICHARD C currently holds a stake of 3.2 million in FCX stock which is worth $39.56 million after the insider buying.
The stock is lingering around the initial support level of $11.84. After this, the following support is at the zone of $11.64. Up until the time the FCX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 54.7 on the daily chart, and this may be a cause for concern. In case the price goes below $11.64 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $12.19 level may cause a pull-back move approaching $12.34 mark.
In the recent trading session, Freeport-McMoRan Inc. (NYSE:FCX) shares gained 2.57% or 0.31 points to reach at $12.35 with a thin trading volume of 14.921 million shares. It opened the trading session at $11.87, the shares rose to $12.14 and dropped to $11.79, the range by which the price of stock traded the whole session. The company now has a market cap of $17.8 billion and currently has 1.48 billion outstanding shares. Freeport-McMoRan Inc. (FCX) stock has plunged -5.94 percent of market value in 21 trading days.
FCX stock’s trailing 3-year beta is 2.38, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.59 share in the trailing 52 weeks. The stock’s value fallen -8.23 percent year to date (YTD) compared to a rise of 1.52 percent in 52 week’s period. The firm’s shares are still trading -15.84 percent below its 1-year high of $14.68 and 46.5 percent up from 52-week low of $8.43. The average consensus ranking on the company is 2.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Freeport-McMoRan Inc. (FCX) shares are trading at a P/E ratio of -68.24 times earnings posted in the trailing 12 months. The industry FCX deals with has an average P/E of 19.36. Its P/B ratio is standing at 1.73X compared to the 3.37 industry average. It is additionally sporting a 1.32 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.13. Freeport-McMoRan Inc. has a 15.3% gross profit margin, with its operating margin around 12.4%. Alongside this, the company’s net profit margin currently stands at 6.2%.
Past records have indicated that shares in Freeport-McMoRan Inc. declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.