Technicals Say Freeport-McMoRan Inc. (FCX) Is A Hold


Freeport-McMoRan Inc. (NYSE:FCX) finished Thursday with an addition of $0.25 to close at $28.35, an upside of 0.89 percent. An average of 18,968,600 shares of common stock have been traded in the last five days. There was a fall of -$1.43 in the past week, and it reached a new high 31 times over the past 12 months. The last 20 days have seen an average of 17,330,590 shares traded, while the 50-day average volume stands at 17,805,689.

FCX stock has decreased by -10.82% in the last month. The company shares reached their 1-month lowest point of $27.30 on 09/07/22. With the stock rallying to its 52-week high on 03/25/22, shares of the company touched a low of $24.80 and a high of $51.76 in 52 weeks. It has reached a new high 13 times so far this year and lost -31.65% or -$13.38 in price. In spite of this, the price is down -45.23% from the 52-week high.

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Insider Transactions

115 days have passed since Freeport-McMoRan Inc. (FCX) last reported insider trading activity. MCCOY DUSTAN E, who is Director, most recently acquired $8,200 shares at $39.24 per share on May 31. In this transaction, the insider spent $321,796. VP Controller & Financial Rptg, WHITMIRE C DONALD JR, disposed of 170 shares at a price of $49.97 on Mar 04. The insider now owns more than $8,495 worth of shares. Prior to that, President and CFO QUIRK KATHLEEN L went on to Sale 80,000 shares at $44.02 each on Feb 16. An amount of $3,521,664 was transacted.

Valuation Metrics

Freeport-McMoRan Inc. (FCX) has a trailing price-to-earnings (P/E) ratio of 8.58. The stock’s beta is 2.00. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.70, the price-to-book (PB) ratio at 2.76, and the price-to-cash flow ratio at 5.97.

The company has a payout ratio of 11.20%. The company’s most recent quarterly dividend payment was $0.15 a share, without any change from last year. Its latest increase dividend $0.0750 reported on Wednesday December 22 2021.

Financial Health

The quick ratio of Freeport-McMoRan Inc. for the three months ended June 29 was 1.90, and the current ratio was 2.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.68 and a total debt to equity ratio of 0.74 for the quarter ending June 29. Its gross profit as reported stood at $8.81 billion compared to revenue of $22.84 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, Freeport-McMoRan Inc.’s return on assets was 10.00%.

Earnings Surprise

For the three-month period that ended June 29, Freeport-McMoRan Inc. had $10.05 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $840.0 million in the quarter, while revenues of $1.53 billion were shrunk -28.93%. The analyst consensus anticipated Freeport-McMoRan Inc.’s latest quarter earnings to come in at $0.61 per share, but it turned out to be $0.58, a -4.90% surprise. For the quarter, EBITDA amounted to $2.24 billion. Shareholders own equity worth $1.43 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Freeport-McMoRan Inc. (FCX) price momentum. RSI 9-day as of the close on 22 September was 39.47%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.32%.

As of today, FCX’s price is $29.20 -4.80% or -$1.43 from its 5-day moving average. FCX is currently trading -9.48% lower than its 20-day SMA and -30.09% lower than its 100-day SMA. However, the stock’s current price level is +7.22% above the SMA50 and -24.14% below the SMA200.

The stochastic %K and %D were 25.97% and 37.15%, respectively, and the average true range (ATR) was 1.43. With the 14-day stochastic at 19.16% and the average true range at 1.44, the RSI (14) stands at 42.79%. The stock has reached -1.17 on the 9-day MACD Oscillator while the 14-day reading was at -1.03.

Analyst Ratings

Exane BNP Paribas upgraded Freeport-McMoRan Inc. (NYSE: FCX) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a Neutral.

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

Analysts predict a range of price targets between $24.00 and $55.00, with a median target of $35.00. Taking a look at these predictions, the average price target given by analysts for Freeport-McMoRan Inc. (FCX) stock is $38.41.


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