Morgan Stanley raised the price target for the Freeport-McMoRan Inc. (NYSE:FCX) stock from “an Overweight” to “an Equal-weight”. The rating was released on March 24, 2021. We previously noted in another research note published on February 16, 2021 by Citigroup that upgraded the stock from a Neutral to a Buy for FCX stock. The research report from JP Morgan has resumed the stock to Overweight, with a price target set at $37. The stock was upgraded by Argus, who disclosed in a research note on January 05, 2021, from Hold to Buy and set the price objective to $30. In their research brief published December 17, 2020, Johnson Rice analysts initiated the Freeport-McMoRan Inc. stock to Buy with a price target of $31.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.39 during the last quarter as opposed to a consensus estimate of $0.38, which indicates the company beat its estimate by $0.01, which implies that the company surprised the market by 2.60%. It appears that the average earnings per share estimate for the current quarter (ending in Mar 2021) is $0.49. This is an average of 14 analysts’ earnings, where the high earnings per share estimate is $0.74 and the low earnings per share estimate is $0.29. According to 5 analyst estimates, an average revenue estimate of $4.74B is projected for the current quarter with a high revenue estimate of $5.12B and a low estimate of $4.19B.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Freeport-McMoRan Inc. (NYSE:FCX) dipped -1.83% to close Wednesday’s market session at $31.61, lower as compared to yesterday’s close. The stock price fluctuated between $31.58 and $33.35 throughout the trading session with the volume trading being 27180338 shares, which represented a significant variation when compared to the three months average volume of 24.42 million shares. The firm’s stock price fluctuated -12.46% within the last five trades and -16.49% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 101.59% in the last 6 months and 27.15% was added to its value over the previous 3 months. FCX stock is trading at a margin of -10.15%, -3.44% and 49.71% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, FCX deals in the Basic Materials domain. The stock is trading -19.16 percent below its 52-week high and 427.71 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 318.15. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Freeport-McMoRan Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 16.50 percent and the profit margin is 4.20 percent, and the company has reported a gross margin of 19.60 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $46.67 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Freeport-McMoRan Inc. (NYSE:FCX) is 79.42. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 11.46. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 3.29 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 4.52, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 0.30 percent of Freeport-McMoRan Inc. shares are owned by insiders, and 76.40 percent are held by financial institutions. FORD GERALD J, the Director at Freeport-McMoRan Inc. (FCX) has sold 55,554 shares of firm on Mar 08 at a price of $35.04 against the total amount of $1.95 million. In another inside trade, FORD GERALD J, Director of Freeport-McMoRan Inc. (NYSE:FCX) sold 300,000 shares of the firm on Mar 04 for a total worth of $9.97 million at a price of $33.24. An inside trade which took place on Mar 03, Director of Freeport-McMoRan Inc. FORD GERALD J sold 20,000 shares of firm against total price of $0.7 million at the cost of $35.14 per share.
How Freeport-McMoRan Inc. (FCX) Stock Is Sustainable?
To Conclude, the score of Environmental, Social and Governance (ESG) has been traditionally used by investors to measure the actions of corporations and to make their future financial predictions. According to the ESG rating scale, there are five hazard levels in the scale: marginal, weak, moderate, high, and extreme. The next generation ESG score is a scale from 0 to 100 where 100 represents the most extreme situation. The score was designed to assist investors at safety and investment level in identifying and recognizing financially relevant ESG threats. A current assessment of the Freeport-McMoRan Inc.’s sustainability factors indicates that it scores at 71 or 71st percentile overall, with an Environment Score of 17 or 17 percentile, a Social Score of 12 or 12 percentile, and a Governance Score of 5 or 5 percentile.