Zacks Investment Research Downgrades Potash Corp. of Saskatchewan (POT) to Sell
Potash Corp. of Saskatchewan (NYSE:POT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Estimates Potash Corp. have been stable of late. Potash Corp. faces headwinds associated with macroeconomic uncertainties stemming from weakness across specific developing markets. It is also exposed to challenges in its nitrogen business and a weak pricing environment. The prevailing softness in agricultural commodity pricing is affecting demand for fertilizers. The company has reduced its earnings guidance for 2016 and also announced a dividend cut.”
Several other equities research analysts have also commented on POT. Scotiabank lowered shares of Potash Corp. of Saskatchewan from an “outperform” rating to a “sector perform” rating in a research report on Tuesday, September 13th. BMO Capital Markets reiterated a “market perform” rating on shares of Potash Corp. of Saskatchewan in a research report on Monday, August 1st. Vetr upgraded shares of Potash Corp. of Saskatchewan from a “hold” rating to a “buy” rating and set a $17.22 price objective on the stock in a research report on Wednesday, September 14th. JPMorgan Chase & Co. decreased their price objective on shares of Potash Corp. of Saskatchewan from $17.00 to $16.00 and set a “neutral” rating on the stock in a research report on Friday, July 29th. Finally, Susquehanna reiterated a “neutral” rating and issued a $16.00 price objective (up from $14.00) on shares of Potash Corp. of Saskatchewan in a research report on Wednesday, August 17th. Eight research analysts have rated the stock with a sell rating, fifteen have issued a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. Potash Corp. of Saskatchewan presently has an average rating of “Hold” and an average price target of $17.69.
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Potash Corp. of Saskatchewan (NYSE:POT) traded up 1.71% on Tuesday, hitting $16.08. 4,884,469 shares of the stock traded hands. The stock has a market cap of $13.50 billion, a price-to-earnings ratio of 19.85 and a beta of 0.71. The firm’s 50-day moving average price is $16.46 and its 200-day moving average price is $16.58. Potash Corp. of Saskatchewan has a 12-month low of $14.64 and a 12-month high of $22.37.
Potash Corp. of Saskatchewan (NYSE:POT) last released its quarterly earnings data on Thursday, July 28th. The fertilizer maker reported $0.18 EPS for the quarter, hitting the consensus estimate of $0.18. Potash Corp. of Saskatchewan had a net margin of 13.20% and a return on equity of 9.17%. The business had revenue of $1.05 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same period in the previous year, the firm earned $0.50 EPS. The business’s revenue for the quarter was down 39.2% compared to the same quarter last year. On average, equities research analysts anticipate that Potash Corp. of Saskatchewan will post $0.52 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 2nd. Shareholders of record on Wednesday, October 12th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 2.49%. The ex-dividend date of this dividend is Friday, October 7th. Potash Corp. of Saskatchewan’s dividend payout ratio is presently 49.38%.
A number of institutional investors have recently added to or reduced their stakes in POT. Lowe fs LLC boosted its position in Potash Corp. of Saskatchewan by 9.4% in the third quarter. Lowe fs LLC now owns 6,490 shares of the fertilizer maker’s stock worth $106,000 after buying an additional 560 shares in the last quarter. Kelly Lawrence W & Associates Inc. CA boosted its position in Potash Corp. of Saskatchewan by 28.0% in the second quarter. Kelly Lawrence W & Associates Inc. CA now owns 6,850 shares of the fertilizer maker’s stock worth $111,000 after buying an additional 1,500 shares in the last quarter. Lazard Asset Management LLC boosted its position in Potash Corp. of Saskatchewan by 16.7% in the first quarter. Lazard Asset Management LLC now owns 7,000 shares of the fertilizer maker’s stock worth $119,000 after buying an additional 1,000 shares in the last quarter. MUFG Americas Holdings Corp boosted its position in Potash Corp. of Saskatchewan by 68.0% in the second quarter. MUFG Americas Holdings Corp now owns 7,730 shares of the fertilizer maker’s stock worth $126,000 after buying an additional 3,130 shares in the last quarter. Finally, Financial Architects Inc boosted its position in Potash Corp. of Saskatchewan by 252.2% in the second quarter. Financial Architects Inc now owns 8,100 shares of the fertilizer maker’s stock worth $132,000 after buying an additional 5,800 shares in the last quarter. Hedge funds and other institutional investors own 58.83% of the company’s stock.
About Potash Corp. of Saskatchewan
Potash Corporation of Saskatchewan Inc is a fertilizer producer producing various primary crop nutrients, such as potash, nitrogen and phosphate. The Company operates through three segments: potash, nitrogen and phosphate. It owns and operates approximately five potash operations in Saskatchewan and one in New Brunswick.
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