Freeport-McMoRan Inc (NYSE:FCX) Shares On a Downtrend


Freeport-McMoRan Inc (NYSE:FCX) was a relative underperformer during Friday’s trading session. The stock was lower mostly on the back of the sharp selloff seen in crude prices, which plunged by close to 2 percent. The stock has broken below a strong support level at $8.70. The bearish momentum has meant that the stock has been forming lower highs and lower lows. The momentum oscillators for the stock continue to trend in bearish territory and are showing no signs of a reversal, which is a cause for concern. Traders believe the stock could head to levels of $7.70 in the near term.


Freeport-McMoRan Inc (NYSE:FCX) closed the trade on a positive note this week with the sale of shares receiving a Hold recommendation from 24 brokerages, as per The share target price for the 12 month period has been kept at $18.12 by the analysts for this year. The quarterly earnings of the company that were announced in October missed the estimate of analysts by $0.07 and closed at a $0.15 earnings per share in the 3Q15.

The buy and hold on shares was same and analysts estimated that the chances of share sale were 45%. The earnings were $3.68 billion which were again lower than the expected $3.96 billion. The revenue of the company on a year-on-year basis was also 35.4% lower than the expectations of the analysts for this fiscal. A company paid a quarterly dividend on November 2, 2015.

Freeport-McMoRan Inc (NYSE:FCX) Stock

In the trade this week, a 2.29% dip in stocks was recorded as 29.69 million shares were a part of the trading. The company was going downwards and has seen a decline of 61.10% in the last six months. The underperformance of shares has been 59.73%. The $9.59 billion company has seen a negative trend since April 24 this year. The company would be valued at $671.30 million lesser if downward journey continued.

Company Operations

Zacks Investment Research informed in its report that Freeport-McMoRan Inc (NYSE:FCX) was currently working on is exploration and development of minerals and was mining for copper, gold and silver in Indonesia. The copper refining was being done in Spain and Indonesia. Both the nations are the largest copper and gold producers globally. The Freeport-McMoRan subsidiaries P.T. Freeport Indonesia (PT-FI), P.T. IRJA Eastern Minerals Corporation (Eastern Mining) and Atlantic Copper, S.A. (Atlantic) were currently helping the company but the revenue was at an all-time low.

The company needs to mull new tie-ups and look for cheaper markets to increase the revenue as the current scenario is not going to hold back the investors for too long as per the market analysts. A buy out can help the company in expanding in new territories for growth.