Freeport-McMoRan Inc (FCX) Stock Jumps up 16% – Can it break through the ceiling?


Freeport-McMoRan Inc (NYSE:FCX) shares are up huge today, as the recent increase in the price of precious metals has seemingly made this stock look like more and more of a decent buy. While the company does have some oil interests, the majority of business centers around gold and copper production. Investors are speculating whether or not today’s price jump will hold or whether it will hit a ceiling at around $5.72.

Freeport-McMoRan Inc (NYSE:FCX) hit that mark on February 4, 2016, after having consistently being beaten down since back in October when the stock traded as high as $13.49 per share. With a 52-week high of $23.97, one would think that there is a lot of potential to the upside. The combination of increased prices of precious metals, combined with perhaps a bottom in energy prices, and the mere fact that shorts need to cover, could help drive this stock up even more in the coming weeks, especially if it can bust through the $5.72 mark. Either way it will be an interesting stock to follow in the coming days and weeks ahead.

The stock is up 16.46% or $0.81 following the news, hitting $5.7 per share. About 21.85 million shares traded hands. FCX has declined 70.86% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 61.39%.

From a total of 12 analysts covering Freeport-McMoran Copper & Gold (NYSE:FCX) stock, 4 rate it a “Buy”, 1 a “Sell”, and 7 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $25 while the lowest target price is $5. The mean of all analyst targets is $11.18 which is 96.14% above today’s ($5.7) stock price. Freeport-McMoran Copper & Gold was the topic of 33 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. Argus Research downgraded shares on February 3 to a “Hold” rating. Gabelli initiated shares with a”Buy” rating and a $20.25 target share price in their report from a September 11. Jefferies downgraded FCX stock in a recent report from January 12 to a “Hold” rating. S&P Research upgraded the rating on September 1. S&P Research has a “Hold” rating and a $12 price target on shares. Finally, FBR Capital maintained the stock with a “Mkt Perform” rating in a report they issued on a December 10.

The institutional sentiment increased to 1.03 in Q2 2015. It’s up 0.35, from 0.68 in 2015Q2. The ratio is positive, as 110 funds sold all their Freeport-McMoRan Inc shares they owned while 236 reduced their positions. 86 funds bought stakes while 270 increased their total positions. Institutions now own 872.60 million shares which is 20.85% more than the previous share count of 722.03 million in 2015Q2.

Northern Cross Llc holds 6.91% of its total portfolio in Freeport-McMoRan Inc, equating to 27.13 million shares. Stuyvesant Capital Management owns 270,124 shares representing 6.61% of their total US portfolio. Moreover, Long Oar Global Investors Llc has 5.59% of their total portfolio invested in the company, equating to 125,000 shares. The Washington-based Washington State Investment Board has a total of 3.8% of their portfolio invested in the stock. Pacific Heights Asset Management Llc, a California-based fund reported 4.58 million shares owned.

Freeport-McMoRan Inc. is a natural resource firm with an industry portfolio of mineral assets, oil and natural gas resources, and a production profile. The company has a market cap of $6.46 billion. FCX has organized its activities into six primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining, Molybdenum mines, and United States gas and oil operations. It currently has negative earnings. The Company’s portfolio of assets includes the Grasberg minerals district in Indonesia, mining activities in North and South America, the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC) in Africa, and oil and natural gas assets in North America.