Hecla Mining Sees Surge in Options Trading Amid Insider Activity

Hecla Mining Company (NYSE: HL) experienced a notable increase in options trading activity on Thursday, with traders purchasing a staggering 47,893 call options. This represents a significant rise of approximately 43% compared to the usual volume of 33,413 call options. The uptick in trading suggests heightened investor interest in the company, particularly in light of recent developments within the firm.

In related news, Vice President Stuart Maurice Absolom sold 14,472 shares of Hecla Mining on September 12, 2023. The shares were sold at an average price of $11.29, totaling approximately $163,388.88. Following this transaction, Absolom’s ownership in the company decreased by 16.51%, leaving him with 73,200 shares valued at around $826,428. This sale was documented in a legal filing with the Securities & Exchange Commission, accessible through their website. Currently, corporate insiders hold about 0.62% of the company’s stock.

Institutional Investor Activity Increases

Institutional investors have also been active in adjusting their stakes in Hecla Mining. During the first quarter, Pale Fire Capital SE acquired a new position valued at approximately $41.36 million. Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 40.6% in the second quarter, now owning over 17 million shares worth around $102.14 million after purchasing an additional 4,928,130 shares.

Other notable transactions include Nuveen LLC, which entered a new position in the first quarter valued at $18.41 million, and Principal Financial Group Inc., which expanded its holdings by an extraordinary 7,588.1% in the third quarter, now owning 3,189,473 shares valued at approximately $38.59 million. Finally, MetLife Investment Management LLC increased its position by 869.3% during the first quarter, acquiring 3,274,065 shares valued at around $18.20 million. Collectively, institutional investors own about 63.01% of Hecla Mining’s stock.

Stock Performance and Financial Metrics

On Friday, Hecla Mining’s shares opened at $13.57, reflecting a 12% increase. The stock has fluctuated significantly over the past year, with a low of $4.46 and a high of $15.44. The company maintains a debt-to-equity ratio of 0.23, a current ratio of 2.67, and a quick ratio of 1.99, indicating a stable financial position. With a market capitalization of $9.09 billion and a price-to-earnings ratio of 84.79, the stock’s performance has garnered attention.

Hecla Mining’s latest quarterly earnings report, released on November 5, 2023, showed earnings per share (EPS) of $0.12, surpassing analyst expectations of $0.11 by $0.01. The company’s revenue for the quarter reached $409.54 million, significantly exceeding the analyst estimate of $315.60 million. This represents a year-over-year revenue increase of 67.1%, up from $0.03 EPS in the same quarter last year. Analysts predict an EPS of $0.21 for the current fiscal year.

Hecla Mining also announced a quarterly dividend of $0.0038 per share, which will be paid on December 8, 2023. The dividend will be distributed to shareholders of record on November 24, 2023, resulting in an annualized dividend of $0.02 and a yield of 0.1%. The ex-dividend date is also set for November 24, 2023, with a dividend payout ratio of 3.23%.

Recent analyst ratings indicate growing confidence in the stock. CIBC has raised its price target from $12.50 to $15.00, maintaining a “neutral” rating. Weiss Ratings reiterated a “hold (c)” rating, while BMO Capital Markets lifted its target from $6.00 to $6.50, assigning a “market perform” rating. On November 2, 2023, Wall Street Zen upgraded Hecla Mining from a “hold” rating to a “buy” rating. Currently, the stock has two buy ratings, five hold ratings, and one sell rating, leading to an average rating of “hold” with a consensus price target of $9.32.

Hecla Mining Company is engaged in the exploration and production of precious and base metals, with operations in the United States, Canada, Japan, Korea, and China. The company focuses on mining silver, gold, lead, and zinc, as well as providing materials for custom smelters and third-party processors.