Technicals Say Hudbay Minerals Inc. (HBM) Is A Hold

Hudbay Minerals Inc. (NYSE:HBM) trading with an addition of $0.24 to $7.24 on Thursday, an upside of 3.43 percent. An average of 1,010,557 shares of common stock have been traded in the last five days. There was a gain of $0.87 in the past week, and it reached a new high 32 times over the past 12 months. The last 20 days have seen an average of 1,613,359 shares traded, while the 50-day average volume stands at 1,445,046.

HBM stock has increased by 13.64% in the last month. The company shares reached their 1-month lowest point of $5.22 on 09/21/21. With the stock rallying to its 52-week high on 05/10/21, shares of the company touched a low of $4.33 and a high of $9.60 in 52 weeks. It has reached a new high 10 times so far this year and lost 0.00% or $0.24 in price. In spite of this, the price is down -24.58% from the 52-week high.

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Valuation Metrics

Hudbay Minerals Inc. (HBM) has a trailing price-to-earnings (P/E) ratio of 20.90 for the broader industry and 13.90 for the sector. In the last five years, Hudbay Minerals Inc.’s PE ratio has ranged between 63.75 and 5.014. The stock’s beta is 1.95. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.31, the price-to-book (PB) ratio at 0.88.

Hudbay Minerals Inc. pays a $0.02 dividend per share annually. It offers a dividend yield of 0.28%. The company’s most recent quarterly dividend payment took place on Sep. 24, and it was $0.0079 a share, without any change from last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.0004 reported on Monday February 22 2021. Dividends have grown by -2.60% each year over the last three years.

Hudbay Minerals Inc. will next go ex-dividend on 10-Mar. The next dividend payment Hudbay Minerals Inc. will make is expected to be $0.01.

The quick ratio of Hudbay Minerals Inc. for the three months ended June 29 was 1.10, and the current ratio was 1.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.73 and a total debt to equity ratio of 0.75 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 15.40% against a 5-year average of 20.0%. Hudbay Minerals Inc.’s EBITDA margin for the year ending June 29 is 30.01%, while its operating margin for the same period stands at 9.20%. Its gross profit as reported stood at $39.0 million compared to revenue of $1.09 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Hudbay Minerals Inc.’s return on assets was -1.70%, compared to -2.1% over the last five years. In the past year, the return on investment has been -0.10%, and the 5-year average is -1.2%. Meanwhile, the return on equity (ROE) for the past 12 months has been -4.80% and the 5-year average holds at -5.0%. For the broader industry, ROE averaged -13.62 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Hudbay Minerals Inc. had $7.29 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$343.81 million in the quarter, while revenues were grew 124.85%. The analyst consensus anticipated Hudbay Minerals Inc.’s latest quarter earnings to come in at $0.11 per share, but it turned out to be $0.02, a -81.80% surprise. For the quarter, EBITDA amounted to $141.21 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Hudbay Minerals Inc. (HBM) price momentum. RSI 9-day as of the close on 13 October was 79.11%, suggesting the stock is Overbought, with historical volatility in this time frame at 34.97%.

As of today, HBM’s price is $6.85 +13.66% or $0.87 from its 5-day moving average. HBM is currently trading +21.07% higher than its 20-day SMA and -2.03% lower than its 100-day SMA. However, the stock’s current price level is +6.78% above the SMA50 and +7.26% above the SMA200.

The stochastic %K and %D were 92.67% and 90.23%, respectively, and the average true range (ATR) was 0.32. With the 14-day stochastic at 94.00% and the average true range at 0.32, the RSI (14) stands at 70.55%. The stock has reached 0.42 on the 9-day MACD Oscillator while the 14-day reading was at 0.59.

Analyst Ratings

National Bank Financial upgraded Hudbay Minerals Inc. (NYSE: HBM) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a a Sector perform.The consensus rating for Hudbay Minerals Inc. (HBM) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell HBM, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.

What is HBM’s price target for the next 12 months?

Analysts predict a range of price targets between $6.74 and $13.64, with a median target of $9.89. Taking a look at these predictions, the average price target given by analysts for Hudbay Minerals Inc. (HBM) stock is $10.13.


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