After the close of the market on August 27, 2015, Carl Icahn filed a Schedule 13D regarding the acquisition of interests in Freeport-McMoRan Inc (NYSE:FCX).
FCX maintains an open dialogue with our shareholders and welcomes constructive input toward our common goal of enhancing shareholder value.
Earlier today, FCX announced revised capital and operating plans in response to the recent decline in commodity prices resulting in reduced capital expenditures, lower production levels and lower operating, administrative and exploration costs. Today’s actions, along with the August 5, 2015 announcement of reduced oil and gas capital expenditures, are the results of the previously announced review of operating plans. The steps we are taking to reduce costs and capital expenditures will strengthen our financial position during a period of weak and uncertain markets and preserve our large resource base for improved future market conditions.
Our high quality portfolio of long-lived assets, flexible operating structure and experienced management team provide a solid base to address the current market conditions while maintaining an attractive portfolio of assets positioned for long-term success.
FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FCX is the world’s largest publicly traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America; the Tenke Fungurume minerals district in the DRC; and significant U.S. oil and natural gas assets in the Deepwater GOM, onshore and offshore California and in the Haynesville natural gas shale, and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana. Additional information about FCX is available on FCX’s website at “fcx.com.” (Original Source)
In reaction, shares of Freeport-McMoRan jumped 19.14% to $12.14 in after-hours trading. FCX has a 1-year high of $36.65 and a 1-year low of $8.16. The stock’s 50-day moving average is $12.36 and its 200-day moving average is $18.01.
On the ratings front, Freeport-McMoRan has been the subject of a number of recent research reports. In a report released yesterday, UBS analyst Brian MacArthur maintained a Buy rating on FCX, with a price target of $19, which implies an upside of 86.5% from current levels. Separately, on August 12, Macquarie’s Aldo Mazzaferro reiterated a Buy rating on the stock and has a price target of $22.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian MacArthur and Aldo Mazzaferro have a total average return of 7.5% and -28.7% respectively. MacArthur has a success rate of 54.2% and is ranked #1127 out of 3734 analysts, while Mazzaferro has a success rate of 7.7% and is ranked #3643.
The street is mostly Bullish on FCX stock. Out of 4 analysts who cover the stock, 2 suggest a Buy rating , 1 suggest a Sell and one recommends to Hold the stock.
Freeport-McMoRan Inc, formerly Freeport-McMoRan Copper & Gold, deals in the mining of copper, gold and molybdenum.