Mosaic Upgraded to Hold Rating Amid Mixed Analyst Opinions

Shares of Mosaic Company (NYSE:MOS) received a significant upgrade from Zacks Research, which moved its rating from a strong sell to a hold. This change, documented in a research note released on November 4, 2023, reflects varying sentiments among analysts regarding the stock’s performance.

Investment firms have expressed different perspectives on Mosaic’s outlook. On the same day as Zacks’ upgrade, Weiss Ratings reaffirmed a “hold (C-)” rating for the company. Meanwhile, Wells Fargo & Company initiated coverage on Mosaic, assigning it an “equal weight” rating with a price target of $28.00. Scotiabank raised its target price from $34.00 to $36.00 while maintaining a “sector perform” rating. Conversely, UBS Group lowered its target price from $40.00 to $38.00, labeling the stock as a “buy.” Barclays also adjusted its outlook, dropping its price target from $35.00 to $31.00 and designating the stock as “overweight.”

Currently, of the analysts tracking Mosaic, one has issued a strong buy rating, seven have assigned buy ratings, and ten have given hold ratings. According to data from MarketBeat.com, the stock holds an average rating of “moderate buy” with a consensus price target of $32.13.

Market Performance Update

Mosaic shares opened at $25.22 on November 4, with a notable increase of 6.2% in value following the upgrade. The stock’s fifty-day moving average stands at $27.27, while the two-hundred-day average is $32.20. Over the past year, Mosaic has reached a low of $22.36 and a high of $38.23. The company’s market capitalization is approximately $8.01 billion, with a price-to-earnings ratio of 6.53 and a price-to-earnings-growth ratio of 0.57. Additionally, Mosaic has a debt-to-equity ratio of 0.26, a current ratio of 1.14, and a quick ratio of 0.40.

On November 4, Mosaic reported its quarterly earnings, revealing earnings per share (EPS) of $1.04, slightly exceeding the consensus estimate of $1.03 by $0.01. The company experienced a year-over-year revenue increase of 22.8%, reporting total earnings of $3.45 billion, although this fell short of the expected $3.87 billion. Last year during the same quarter, Mosaic posted EPS of $0.34.

Dividend Announcement and Institutional Activity

Mosaic has declared a quarterly dividend of $0.22 per share, which is set to be paid on December 18, 2023. Shareholders on record as of December 4, 2023, will be eligible to receive this dividend. This translates to an annualized dividend of $0.88, yielding approximately 3.5%, with a payout ratio of 22.80%.

Recent shifts in ownership reflect significant institutional interest in Mosaic. Notable changes include First Horizon Advisors Inc. increasing its stake by 172.5% in the second quarter, now holding 684 shares valued at about $25,000. Bangor Savings Bank acquired a new position in Mosaic estimated at $26,000. Geneos Wealth Management Inc. also raised its stake by 169.3%, now owning 956 shares worth $26,000 after adding 601 shares. Additionally, Rothschild Investment LLC increased its holdings by 650.0%, bringing its total to 750 shares valued at $27,000. Currently, institutional investors and hedge funds own approximately 77.54% of the company.

The Mosaic Company, through its subsidiaries, specializes in the production and marketing of concentrated phosphate and potash crop nutrients across North America and internationally. Its operations are divided into three segments: Phosphates, Potash, and Mosaic Fertilizantes. The company owns and operates mines that yield various phosphate crop nutrients and animal feed ingredients.

Investors and analysts will continue to monitor Mosaic’s performance as further developments unfold in the coming quarters.