Taking on analysts’ expectations and winning: Hudbay Minerals Inc. (HBM)

Hudbay Minerals Inc. (NYSE: HBM) stock fell -3.52% on Monday to $5.76 against a previous-day closing price of $5.97. With 3.45 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.44 million shares. During the session, the Copper company that operates in wider Basic Materials sector, reached to the highest price of $5.97 whereas the lowest price it dropped to was $5.75. The 52-week range on HBM shows that it touched its highest point at $8.75 and its lowest point at $3.08 during that stretch. It currently has a 1-year price target of $7.29. With its current market cap of 2.04 billion, HBM has annualized dividend of $0.02 while the current yield stands at 0.35%. Beta for the stock currently stands at 2.01.

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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 HBM was down-trending over the past week, with a drop of -6.65%, but this was up by 10.13% over a month. Three-month performance surged to 58.24% while six-month performance rose 71.43%. The stock lost -28.18% in the past year, while it has gained 13.61% so far this year. A look at the trailing 12-month EPS for HBM yields 0.40 with Next year EPS estimates of 0.70. For the next quarter, that number is 0.09. This implies an EPS growth rate of -68.90% for this year and 301.71% for next year. EPS is expected to grow by 4.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -44.30%.

Float and Shares Shorts:

At present, 261.90 million HBM shares are outstanding with a float of 261.63 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.31 million, which was 3.94% higher than short shares on Sep 14, 2022. In addition to Mr. Peter Gerald Jan Kukielski Bsc, Msc as the firm’s Pres, CEO & Director, Mr. Chi-Yen Lei serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 75.99% of HBM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 28.86% of HBM, in contrast to 25.75% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in HBM with 12.09% of the stake, GMT Capital Corp. holds 31,653,920 shares worth 31,653,920. A second-largest stockholder of HBM, L1 Capital Pty Ltd., holds 18,076,014 shares, controlling over 6.90% of the firm’s shares. Letko, Brosseau & Associates Inc. is the third largest shareholder in HBM, holding 17,105,962 shares or 6.53% stake. With a 1.95% stake in HBM, the Global X Copper Miners ETF is the largest stakeholder. A total of 5,092,881 shares are owned by the mutual fund manager. The DFA International Small Cap Value, which owns about 1.56% of HBM stock, is the second-largest Mutual Fund holder. It holds 4,073,336 shares valued at 20.65 million. DFA International Core Equity Por holds 1.55% of the stake in HBM, owning 4,060,214 shares worth 20.59 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HBM since 15 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 HBM analysts setting a high price target of $8.21 and a low target of $5.10, the average target price over the next 12 months is $6.96. Based on these targets, HBM could surge 42.53% to reach the target high and fall by -11.46% to reach the target low. Reaching the average price target will result in a growth of 20.83% 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. HBM will report FY 2022 earnings on 02/22/2024. For HBM, this leads to a yearly average estimate of $0.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Hudbay Minerals Inc. surprised analysts by $0.03 when it reported -$0.05 EPS against a consensus estimate of -$0.08. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.18 and the low estimate is -$0.11. The average estimate for the next quarter is thus $0.07.

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