Unusual trading activity surrounding Hecla Mining Company (NYSE: HL) has drawn attention as traders purchased a significant 47,893 call options on Thursday, representing a 43% increase over the typical volume of 33,413 options. This surge in options trading raises questions about potential bullish sentiment among investors regarding the company’s future performance.
Insider Activity and Institutional Investments
In related news, Hecla Mining’s Vice President, Stuart Maurice Absolom, sold 14,472 shares of the company on September 12, 2023, at an average price of $11.29, totaling approximately $163,388.88. Following this transaction, Absolom holds 73,200 shares valued at around $826,428, marking a 16.51% reduction in his ownership. This sale was reported in a legal filing with the Securities & Exchange Commission.
Institutional investors have also been active in the market for Hecla Mining. Notably, Pale Fire Capital SE acquired a new position valued at about $41.36 million in the first quarter of 2023. Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake by 40.6% during the second quarter, now owning over 17 million shares worth approximately $102.14 million. Other significant players include Nuveen LLC, who invested about $18.41 million, and Principal Financial Group Inc., which grew its holdings by an impressive 7,588.1%, acquiring nearly 3.2 million shares valued at $38.59 million.
Currently, institutional investors hold a substantial 63.01% of Hecla Mining’s stock, reflecting a strong confidence in the company’s outlook.
Stock Performance and Financial Outlook
As of Friday, Hecla Mining’s stock opened at $13.57. The company’s shares have seen a one-year low of $4.46 and a high of $15.44. Hecla Mining has a market capitalization of $9.09 billion and reported a debt-to-equity ratio of 0.23, indicating a stable financial position. The stock’s 50-day and 200-day moving averages are currently $11.85 and $8.06, respectively.
In its most recent quarterly earnings report released on November 5, 2023, Hecla Mining posted earnings of $0.12 per share, exceeding analysts’ expectations of $0.11 by one cent. The company reported revenues of $409.54 million, significantly surpassing the anticipated $315.60 million. Year-over-year, this represents a remarkable increase of 67.1% in revenue, with the previous year’s earnings per share at $0.03. Analysts predict that Hecla Mining will achieve an earnings per share of $0.21 for the current fiscal year.
The company has also declared a quarterly dividend of $0.0038 per share, payable on December 8, 2023, to investors of record as of November 24, 2023. This translates to an annualized dividend of $0.02 and a yield of 0.1%. Hecla Mining’s dividend payout ratio currently stands at 3.23%, indicating a modest return to shareholders.
Several analysts have recently updated their ratings for Hecla Mining. CIBC raised its price target from $12.50 to $15.00, maintaining a neutral rating, while Weiss Ratings reiterated a hold rating. BMO Capital Markets increased its target price from $6.00 to $6.50, also issuing a market perform rating. On the other hand, Wall Street Zen upgraded the stock from hold to buy, reflecting a growing optimism in its potential.
Overall, two analysts have rated Hecla Mining as a Buy, five have assigned a Hold rating, and one has given it a Sell rating, resulting in an average rating of Hold and a consensus price target of $9.32.
Hecla Mining Company, along with its subsidiaries, is engaged in the exploration and production of precious and base metals across the United States, Canada, Japan, Korea, and China, focusing primarily on silver, gold, lead, and zinc. As the company continues to navigate market dynamics, its recent financial performance and trading activity will be closely monitored by investors and analysts alike.
