The Mosaic Company (NYSE:MOS) has been a topic of discussion among investors and research firms alike, with fifteen research firms currently covering the stock. Bloomberg.com reports that these research analysts have given the company a consensus recommendation of “Hold.” However, this consensus is not unanimous – four equity research analysts have recommended selling the stock, eight suggest holding it, and only two advise buying.
The company’s main business is the production and marketing of concentrated phosphate and potash crop nutrients. The Phosphates segment operates mines and production facilities that produce concentrated phosphate crop nutrients, as well as processing plants which create phosphate-based animal feed ingredients.
Mosaic opened at $43.67 on Monday at the NYSE, boasting a market capitalization worth $14.69 billion. With a price-to-earnings ratio of 4.38 and a beta of 1.49, investors remain cautious about investing in this firm. Its debt-to-equity ratio stands at 0.20 while its quick ratio is 0.54 and current ratio just above one at 1.18.
As for its performance over the past year, Mosaic’s shares have ranged between $40.29 –-its lowest point -–and $79.28 –-the highest recorded in that period–with an average one-year price objective among brokers presently sitting at $54.50.
While some may view MOS with trepidation due to its lower-than-average P/E ratio, others may find solace in its low PEG ratio of 0.83 indicating signs of growth potential despite the recommendation consensus being hard to come by.
In conclusion, investing in Mosaic warrants careful consideration since there are differing opinions among industry analysts regarding it securities’ performance coupled with variables in market movements making predictions less clear than would usually be preferred by potential investors or shareholders looking for guidance regarding their positions concerning Mosaic’s stocks prices in terms of buying, selling or holding.
Mixed Signals for Mosaic: Scrutiny and Institutional Investor Interest
Mosaic, the world-renowned producer of concentrated phosphate and potash crop nutrients, has been under scrutiny recently by a number of market analysts who have voiced their concerns over the company’s performance. Credit Suisse Group, for example, boosted its price objective on Mosaic from $39.00 to $42.00 and gave the stock an “underperform” rating in February 2017 after conducting an analysis into the basic materials company’s prospects. Meanwhile, Royal Bank of Canada dropped their target price on Mosaic from $60.00 to $55.00 and set a “sector perform” rating on the stock in January 2017.
These reports come as Mosaic released its latest quarterly earnings data in February which revealed it had generated revenue of $4.48 billion for the quarter – beating analysts’ estimates – and that it had experienced revenue growth of 16.7% compared to the same quarter last year.
Despite mixed signals coming from market reports surrounding Mosaic’s current standing within the industry, institutional investors continue to remain interested in this company’s potential value opportunities. Recently added or reduced stakes have seen 85% of stock ownership now owned by institutional investors such as Quent Capital LLC and Merrion Investment Management Co LLC.
Mosaic continues to hold promise as a business endeavor due to its return on equity of over 33%, while it also caters heavily towards globally-sought after products essential to agriculture production.
Mosaic has just announced its most recent quarterly dividend payout – shareholders will receive a dividend of $0.20 per share issued on Thursday June 15th based on record held on Thursday June 1st – highlighting that at least some investors consider Mosaic worth sticking with despite recent analyst downgrades.
