Freeport-McMoRan (FCX) Cut to “Underperform” at Royal Bank of Canada

Royal Bank of Canada cut shares of Freeport-McMoRan (NYSE:FCX) from a sector perform rating to an underperform rating in a research report released on Tuesday, MarketBeat reports. The firm currently has $12.20 target price on the natural resource company’s stock. The analysts noted that the move was a valuation call.

Other equities research analysts have also recently issued reports about the company. Citigroup decreased their price objective on Freeport-McMoRan from $18.00 to $14.00 and set a neutral rating for the company in a research note on Wednesday, October 17th. Raymond James set a $16.00 price objective on Freeport-McMoRan and gave the stock a hold rating in a research note on Wednesday, October 24th. ValuEngine cut Freeport-McMoRan from a sell rating to a strong sell rating in a research note on Tuesday, October 2nd. Deutsche Bank upgraded Freeport-McMoRan from a sell rating to a hold rating in a research note on Thursday, July 26th. Finally, Jefferies Financial Group restated a buy rating and set a $24.00 price objective on shares of Freeport-McMoRan in a research note on Thursday, July 26th. Four research analysts have rated the stock with a sell rating, eleven have given a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average target price of $16.67.

Shares of NYSE FCX traded down $0.58 during mid-day trading on Tuesday, reaching $11.35. 21,437,925 shares of the company were exchanged, compared to its average volume of 22,813,720. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.84 and a quick ratio of 1.78. The stock has a market capitalization of $17.87 billion, a P/E ratio of 9.70 and a beta of 2.40. Freeport-McMoRan has a 1 year low of $10.59 and a 1 year high of $20.25.

Freeport-McMoRan (NYSE:FCX) last issued its quarterly earnings data on Wednesday, October 24th. The natural resource company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02. The firm had revenue of $4.91 billion during the quarter, compared to analysts’ expectations of $4.50 billion. Freeport-McMoRan had a return on equity of 22.63% and a net margin of 15.80%. The firm’s quarterly revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.34 EPS. As a group, equities research analysts anticipate that Freeport-McMoRan will post 1.71 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 1st. Shareholders of record on Monday, October 15th were paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 1.76%. The ex-dividend date of this dividend was Friday, October 12th. Freeport-McMoRan’s dividend payout ratio (DPR) is presently 17.09%.

In other Freeport-McMoRan news, Director Courtney Mather sold 75,000 shares of the stock in a transaction dated Tuesday, October 30th. The stock was sold at an average price of $11.15, for a total value of $836,250.00. Following the completion of the sale, the director now directly owns 152,133 shares in the company, valued at $1,696,282.95. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 1.05% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the business. Alps Advisors Inc. increased its holdings in shares of Freeport-McMoRan by 27.2% in the second quarter. Alps Advisors Inc. now owns 14,947 shares of the natural resource company’s stock valued at $283,000 after purchasing an additional 3,200 shares during the period. Independent Advisor Alliance increased its holdings in shares of Freeport-McMoRan by 9.6% in the second quarter. Independent Advisor Alliance now owns 37,659 shares of the natural resource company’s stock valued at $583,000 after purchasing an additional 3,311 shares during the period. Atlas Capital Advisors LLC increased its holdings in shares of Freeport-McMoRan by 34.2% in the second quarter. Atlas Capital Advisors LLC now owns 13,510 shares of the natural resource company’s stock valued at $227,000 after purchasing an additional 3,445 shares during the period. Gibraltar Capital Management Inc. increased its holdings in shares of Freeport-McMoRan by 1.1% in the second quarter. Gibraltar Capital Management Inc. now owns 365,060 shares of the natural resource company’s stock valued at $6,301,000 after purchasing an additional 3,950 shares during the period. Finally, Oakbrook Investments LLC increased its holdings in shares of Freeport-McMoRan by 4.2% in the second quarter. Oakbrook Investments LLC now owns 112,030 shares of the natural resource company’s stock valued at $1,934,000 after purchasing an additional 4,480 shares during the period. Institutional investors own 73.10% of the company’s stock.

About Freeport-McMoRan

Freeport-McMoRan Inc engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde and El Abra mines in South America.

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