Mosaic Shares Upgraded to Hold as Analysts Adjust Ratings

Mosaic Company (NYSE:MOS) received an upgrade from Zacks Research, moving from a strong sell rating to a hold rating, according to a research note published on November 4, 2023. This change reflects a broader reassessment of the stock, which has been the subject of multiple analyst reports recently.

In conjunction with Zacks’ upgrade, Weiss Ratings reiterated a “hold (c-)” rating for Mosaic on the same day. Wells Fargo & Company initiated coverage of the stock on November 11, 2023, assigning an “equal weight” rating with a price target of $28.00. Similarly, Scotiabank raised its target price for Mosaic from $34.00 to $36.00, maintaining a “sector perform” rating.

Additionally, UBS Group adjusted its price target from $40.00 to $38.00 and retained a “buy” rating. Barclays, on the other hand, lowered its price target from $35.00 to $31.00, while also giving the stock an “overweight” rating. Currently, one analyst has rated Mosaic with a strong buy, while seven others have given it a buy rating, and ten have issued a hold rating. As reported by MarketBeat.com, Mosaic holds an average rating of “Moderate Buy” with a consensus price target of $32.13.

Mosaic shares opened at $25.22 on November 4, 2023, reflecting a recent increase of 6.2%. The stock’s fifty-day moving average stands at $27.27, while the two-hundred-day moving average is $32.20. Over the past year, the company’s stock has fluctuated between a low of $22.36 and a high of $38.23. Mosaic currently boasts a market capitalization of $8.01 billion, a price-to-earnings ratio of 6.53, and a price-to-earnings-growth ratio of 0.57. The company’s debt-to-equity ratio is 0.26, with a current ratio of 1.14 and a quick ratio of 0.40.

The company released its quarterly earnings on November 4, 2023, reporting earnings per share of $1.04, which slightly surpassed the expected $1.03. Mosaic’s return on equity was 6.46%, and the company achieved a net margin of 10.33%. Total revenue for the quarter amounted to $3.45 billion, although it fell short of the consensus estimate of $3.87 billion. This marks a significant increase of 22.8% in revenue compared to the same quarter last year. Analysts project that Mosaic will earn $2.04 per share for the current fiscal year.

In another significant development, Mosaic announced a quarterly dividend of $0.22, set to be paid on December 18, 2023. Shareholders on record as of December 4, 2023, will receive this dividend, with an ex-dividend date also on December 4. This dividend represents an annualized payout of $0.88 and yields approximately 3.5%, with a payout ratio of 22.80%.

Institutional investors have recently adjusted their holdings in Mosaic, reflecting a growing interest. First Horizon Advisors Inc. increased its stake in the company by 172.5% during the second quarter, now holding 684 shares valued at approximately $25,000. Bangor Savings Bank acquired a new position in Mosaic worth $26,000, while Geneos Wealth Management Inc. raised its position by 169.3% in the first quarter. Rothschild Investment LLC expanded its stake by 650.0% in the second quarter, now owning 750 shares valued at $27,000. Currently, institutional investors and hedge funds own 77.54% of Mosaic’s stock.

The Mosaic Company operates in the agriculture sector, producing and marketing concentrated phosphate and potash crop nutrients both in North America and internationally. The company operates through three key segments: Phosphates, Potash, and Mosaic Fertilizantes. Its product offerings include various phosphate-based fertilizers and animal feed ingredients, enhancing its position within the agricultural market.