First Quantum Minerals Ltd. (OTCMKTS:FQVLF) has experienced a significant drop in short interest during the month of September. The total number of shares with short interest came to 4,714,800, representing a 9.3% decline from the previous month’s total of 5,199,400 shares. With an average daily trading volume of 144,300 shares, the short-interest ratio currently stands at 32.7 days.
Wall Street Analysts Weigh In
Various research analysts have issued reports on First Quantum Minerals Ltd. TD Securities increased their price target from C$41.00 to C$44.00, while BMO Capital Markets upgraded the stock from a “market perform” rating to an “outperform” rating. National Bank Financial and CIBC also raised their price targets on the company’s shares. With a consensus rating of “Hold” and a consensus target price of $33.83, First Quantum Minerals has received mixed recommendations from analysts.
Stock Performance and Financials
First Quantum Minerals currently trades at $22.47 per share and has a market capitalization of $15.58 billion. It has a 1-year low of $16.35 and a 1-year high of $29.79. The company has a current ratio of 1.70 and a quick ratio of 0.95. With a debt-to-equity ratio of 0.48, it demonstrates a relatively conservative approach to leverage. Moreover, First Quantum Minerals reported $0.12 earnings per share for the last quarter, meeting the market consensus estimate. The company has a net margin of 5.88% and a return on equity of 3.33%. Analysts project the company to post 0.84 earnings per share for the current fiscal year.
First Quantum Minerals Cuts Dividend
In addition to the decline in short interest, First Quantum Minerals recently announced a dividend payout. Shareholders of record on August 28th received a $0.0606 dividend on September 19th. With an ex-dividend date on August 25th, the yield amounted to 0.62%. The dividend payout ratio for First Quantum Minerals currently stands at 21.05%.
About First Quantum Minerals Ltd.
First Quantum Minerals Ltd. is involved in the exploration, development, and production of various minerals, including copper, nickel, silver, gold, and zinc ores. They also produce acid. The company operates mines in several locations, including Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania. With a diverse portfolio of projects, First Quantum Minerals continues to be a key player in the mining industry.
1. What is short interest?
Short interest refers to the number of shares of a stock that have been sold short by investors. It is an indication of market sentiment, with a high short interest suggesting that investors anticipate a decline in the stock’s price.
2. What does the short interest ratio mean?
The short-interest ratio is a metric used to assess the level of short interest in a stock relative to its trading volume. It is calculated by dividing the total number of shares with short interest by the average daily trading volume. A higher ratio indicates a higher potential for a short squeeze, where short sellers rush to cover their positions due to a significant increase in the stock’s price.