Why Hudbay Minerals Inc. (HBM) Is Getting Hammered Today

Hudbay Minerals Inc. (NYSE:HBM) is among the top losers of the stock market today, sinking -3.21% or (-0.11 points) to $3.16 from its previous close of $3.27. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 306374 contracts so far this session. HBM shares had a relatively better volume day versus average trading capacity of 885.19 thousand shares, but with a 0.2 billion float and a -0.91% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for HBM stock indicates that the average analyst price target is $10.71 per share. This means the stock has a potential increase of 238.92% from where the HBM share price has been trading recently which is between $3.185 and $3.3.

During the recent trading session for Hudbay Minerals Inc. (NYSE:HBM), the company witnessed their stock drop by $-0.15 over a week and tumble down $-0.56 from the price 20 days ago. When compared to their established 52-week high of $7.83, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 12/04/19. The recent low of $2.99 stood for a -59.58% since 08/28/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Hudbay Minerals Inc., the two-week RSI stands at 36.27. This figure suggests that HBM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current HBM readings is similarly very revealing as it has a stochastic reading of 6.15% at this stage. This figure means that HBM share price today is being overbought.

Technical chart claims that Hudbay Minerals Inc. (HBM) would settle between $3.32/share to $3.37/share level. However, if the stock price goes below the $3.2 mark, then the market for Hudbay Minerals Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $3.14 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.12. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at BMO Capital Markets lowered their recommendation on shares of HBM from Outperform to Market Perform in their opinion released on May 10. Credit Suisse analysts bumped their rating on Hudbay Minerals Inc. (NYSE:HBM) stock from Neutral to Outperform in a separate flash note issued to investors on March 11. Analysts at CIBC lowered the stock to a Neutral call from its previous Sector Outperform recommendation, in a research note that dated back to January 22.

HBM equity has an average rating of 1.91, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 2 analysts rated Hudbay Minerals Inc. (NYSE:HBM) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, HBM stock price is currently trading at 3X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 17.6. Hudbay Minerals Inc. current P/B ratio of 0.4 means it is trading at a discount against its industry’s 1.4.

Hudbay Minerals Inc. (HBM)’s current-quarter revenues are projected to climb by nearly 44.2% to hit $364970, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 8.5% from $1.36 billion to a noteworthy $1.48 billion. At the other end of the current quarter income statement, Hudbay Minerals Inc. is expected to see its adjusted earnings surge by roughly 800% to hit $0.18 per share. For the fiscal year, HBM’s earnings are projected to climb by roughly 26.2% to hit $0.77 per share.