Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM) stock fell -3.21% on Friday to $94.95 against a previous-day closing price of $98.10. With 1.4 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.85 million shares. During the session, the Chemicals company that operates in wider Basic Materials sector, reached to the highest price of $99.05 whereas the lowest price it dropped to was $94.65. The 52-week range on SQM shows that it touched its highest point at $115.76 and its lowest point at $44.66 during that stretch. It currently has a 1-year price target of $104.74. With its current market cap of 24.84 billion, SQM has annualized dividend of $3.00 while the current yield stands at 3.16%. Beta for the stock currently stands at 0.87.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SQM was down-trending over the past week, with a drop of -2.12%, but this was up by 12.14% over a month. Three-month performance surged to 26.77% while six-month performance rose 67.43%. The stock gained 101.99% in the past year, while it has gained 88.28% so far this year. A look at the trailing 12-month EPS for SQM yields 4.60 with Next year EPS estimates of 10.66. For the next quarter, that number is 3.10. This implies an EPS growth rate of 227.90% for this year and -4.95% for next year. EPS is expected to grow by 40.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.20%.
Float and Shares Shorts:
At present, 285.63 million SQM shares are outstanding with a float of 285.26 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.99 million, which was 1.05% higher than short shares on Jun 14, 2022. In addition to Mr. Ricardo Ramos Rodríguez as the firm’s Chief Exec. Officer, Mr. Gerardo Illanes G. serves as its CFO & VP of Fin.
Through their ownership of 42.25% of SQM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 25.71% of SQM, in contrast to 12.54% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SQM with 3.43% of the stake, Fidelity Management & Research Co holds 4,897,788 shares worth 4,897,788. A second-largest stockholder of SQM, BlackRock Investment Management, holds 3,408,368 shares, controlling over 2.39% of the firm’s shares. Global X Management Co. LLC is the third largest shareholder in SQM, holding 2,898,231 shares or 2.03% stake. With a 2.18% stake in SQM, the Fidelity Inv. Trust – Emerging Ma is the largest stakeholder. A total of 3,111,263 shares are owned by the mutual fund manager. The Global X Lithium & Battery Tech E, which owns about 1.83% of SQM stock, is the second-largest Mutual Fund holder. It holds 2,618,561 shares valued at 218.73 million. American Funds New Perspective Fu holds 1.63% of the stake in SQM, owning 2,326,077 shares worth 194.3 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SQM since 16 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SQM analysts setting a high price target of $136.00 and a low target of $62.00, the average target price over the next 12 months is $105.87. Based on these targets, SQM could surge 43.23% to reach the target high and fall by -34.7% to reach the target low. Reaching the average price target will result in a growth of 11.5% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SQM will report FY 2022 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of $15.00 being high and $10.39 being low. For SQM, this leads to a yearly average estimate of $11.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sociedad Quimica y Minera de Chile S.A. surprised analysts by $1.27 when it reported $2.79 EPS against a consensus estimate of $1.51. The surprise factor in the prior quarter was $0.20. Based on analyst estimates, the high estimate for the next quarter is $4.08 and the low estimate is $2.67. The average estimate for the next quarter is thus $3.12.