A look into BHP Group Limited (BHP)’s deeper side

BHP Group Limited (NYSE: BHP) stock fell -0.23% on Friday to $53.13 against a previous-day closing price of $53.25. With 2.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.56 million shares. During the session, the Other Industrial Metals & Mining company that operates in wider Basic Materials sector, reached to the highest price of $53.56 whereas the lowest price it dropped to was $52.86. The 52-week range on BHP shows that it touched its highest point at $71.71 and its lowest point at $46.33 during that stretch. It currently has a 1-year price target of $72.90. With its current market cap of 130.89 billion, BHP has annualized dividend of $7.00 while the current yield stands at 13.18%. Beta for the stock currently stands at 0.97.

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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 BHP was down-trending over the past week, with a drop of -1.65%, but this was up by 1.20% over a month. Three-month performance dropped to -14.11% while six-month performance fell -9.20%. The stock lost -24.71% in the past year, while it has lost -1.42% so far this year. EPS is expected to decline by -9.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 92.90%.

Float and Shares Shorts:

At present, 2.53 billion BHP shares are outstanding with a float of 1.41 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 7.08 million, which was 0.28% higher than short shares on Jun 14, 2022. In addition to Mr. Mike P. Henry B.Sc., BSc (Chem) as the firm’s CEO & Exec. Director, Mr. David Mark Lamont ACA, BCom, C.A. serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 4.13% of BHP’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.29% of BHP, in contrast to 0.99% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BHP with 0.67% of the stake, Fisher Asset Management LLC holds 16,904,899 shares worth 16,904,899. A second-largest stockholder of BHP, Harding Loevner LP, holds 15,497,864 shares, controlling over 0.61% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in BHP, holding 10,338,797 shares or 0.41% stake. With a 0.32% stake in BHP, the Harding Loevner International Equ is the largest stakeholder. A total of 8,126,080 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 0.12% of BHP stock, is the second-largest Mutual Fund holder. It holds 3,094,049 shares valued at 173.82 million. Franklin Income Fund holds 0.08% of the stake in BHP, owning 2,000,000 shares worth 112.36 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. Over the past year, revenue came in at $67.30B while operating income stood at $30.86B. EBITDA for the full year was $41.04B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BHP since 27 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 1 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 BHP analysts setting a high price target of $72.20 and a low target of $47.66, the average target price over the next 12 months is $58.08. Based on these targets, BHP could surge 35.89% to reach the target high and fall by -10.3% to reach the target low. Reaching the average price target will result in a growth of 9.32% 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. BHP will report FY 2022 earnings on 08/22/2023. Analysts have provided yearly estimates in a range of $10.48 being high and $7.88 being low. For BHP, this leads to a yearly average estimate of $8.66. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Based on analyst estimates, the high estimate for the next quarter is $2.46 and the low estimate is $2.46. The average estimate for the next quarter is thus $2.46.

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