Wheaton Precious Metals Corp. (NYSE: WPM) stock fell -2.53% on Friday to $32.76 against a previous-day closing price of $33.61. With 3.28 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.65 million shares. During the session, the Gold company that operates in wider Basic Materials sector, reached to the highest price of $33.85 whereas the lowest price it dropped to was $32.43. The 52-week range on WPM shows that it touched its highest point at $51.90 and its lowest point at $31.56 during that stretch. It currently has a 1-year price target of $58.84. With its current market cap of 14.11 billion, WPM has annualized dividend of $0.60 while the current yield stands at 1.83%. Beta for the stock currently stands at 0.51.
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 WPM was down-trending over the past week, with a drop of -0.33%, but this was down by -6.45% over a month. Three-month performance dropped to -27.26% while six-month performance fell -19.33%. The stock lost -29.24% in the past year, while it has lost -23.69% so far this year. A look at the trailing 12-month EPS for WPM yields 1.66 with Next year EPS estimates of 1.40. For the next quarter, that number is 0.32. This implies an EPS growth rate of 48.30% for this year and 4.79% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 29.90%.
Float and Shares Shorts:
At present, 450.92 million WPM shares are outstanding with a float of 449.67 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.53 million, which was 3.00% higher than short shares on Jun 14, 2022. In addition to Mr. Randy V. J. Smallwood P.Eng, P.Eng. as the firm’s Pres, CEO & Director, Mr. Gary D. Brown CA, CFA serves as its Sr. VP & CFO.
Through their ownership of 65.23% of WPM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.80% of WPM, in contrast to 50.74% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in WPM with 4.56% of the stake, Capital Research & Management Co holds 20,592,926 shares worth 20,592,926. A second-largest stockholder of WPM, Van Eck Associates Corp., holds 19,311,841 shares, controlling over 4.28% of the firm’s shares. First Eagle Investment Management is the third largest shareholder in WPM, holding 17,057,649 shares or 3.78% stake. With a 3.55% stake in WPM, the VanEck Gold Miners ETF is the largest stakeholder. A total of 16,023,735 shares are owned by the mutual fund manager. The American Balanced Fund, which owns about 2.53% of WPM stock, is the second-largest Mutual Fund holder. It holds 11,427,000 shares valued at 411.71 million. American Funds Fundamental Invest holds 2.27% of the stake in WPM, owning 10,229,800 shares worth 368.58 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, WPM reported revenue of $307.24M and operating income of $160.54M. Over the past year, revenue came in at $1.18B while operating income stood at $751.20M. It generated $157.47M net income for the quarter, which came to $750.35M over the last twelve months. The EBITDA in the recently reported quarter was $219.20M and diluted EPS was $0.35. EBITDA for the full year was $849.36M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WPM since 17 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WPM analysts setting a high price target of $65.50 and a low target of $38.00, the average target price over the next 12 months is $52.38. Based on these targets, WPM could surge 99.94% to reach the target high and rise by 16.0% to reach the target low. Reaching the average price target will result in a growth of 59.89% 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. WPM will report FY 2022 earnings on 03/22/2023. Analysts have provided yearly estimates in a range of $1.53 being high and $1.13 being low. For WPM, this leads to a yearly average estimate of $1.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wheaton Precious Metals Corp. surprised analysts by $0.01 when it reported $0.35 EPS against a consensus estimate of $0.34. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.35 and the low estimate is $0.28. The average estimate for the next quarter is thus $0.32.