Freeport-McMoRan to Repurchase $3B in Common Stock

Freeport-McMoRan (FCX) revealed that its board of directors have approved a new common stock repurchase program of up to $3 billion, and declared a variable common stock cash dividend for 2022. The mining company focuses on exploring copper, gold, and molybdenum.

The buyback plan will be carried out as and when determined by Freeport-McMoRan in the open market or private transactions. (See Analysts’ Top Stocks on TipRanks)

Further, the combined annual rate of the base dividend and the variable dividend is expected to total $0.60 per share. The company disclosed that it intends to declare 2022 quarterly dividends of $0.15 per share (including the $0.075 variable component), with the initial quarterly dividend expected to be paid on February 1, 2022.

Freeport-McMoRan chairman and CEO, Richard C. Adkerson, said, “With the recent achievement of our net debt target, strong execution of operating plans and favorable market conditions for our products, we are pleased to commence implementation of our performance-based payout framework.

“These actions allow us to return a designated portion of our cash flow to shareholders efficiently while maintaining a strong balance sheet and providing substantial resources and capacity for investments in our long-term future.”

On October 21, Jefferies analyst Chris LaFemina reiterated a Buy rating on the stock with a price target of $50 (30.5% upside potential from current levels).

Consensus among analysts is a Hold based on four Buys, three Holds and two Sells. The average Freeport-McMoRan price target stands at $39.69, and implies upside potential of 3.6% to current levels.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Freeport-McMoRan is currently Very Positive, as the cumulative change in holdings across all 17 hedge funds that were active in the last quarter was an increase of 12.1 million shares.

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