Mosaic (NYSE:MOS) Shares Down 6.1% Following Weak Earnings

The Mosaic Company (NYSE:MOS) fell 6.1% during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $26.52 and last traded at $26.7410. 8,790,638 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 6,799,851 shares. The stock had previously closed at $28.49.

The basic materials company reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.26). The company had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $3.02 billion. Mosaic had a return on equity of 5.80% and a net margin of 4.49%.The firm’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter last year, the company posted $0.45 earnings per share.

Mosaic Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Stockholders of record on Monday, March 9th will be given a dividend of $0.22 per share. The ex-dividend date is Monday, March 9th. This represents a $0.88 annualized dividend and a dividend yield of 3.2%. Mosaic’s dividend payout ratio (DPR) is 22.80%.

More Mosaic News

Here are the key news stories impacting Mosaic this week:

• Positive Sentiment: Mizuho raised its price target to $30 from $28 and kept a neutral rating — a modest bullish signal that implies roughly 9.8% upside versus recent levels. This provides near-term support for the stock. Mizuho raises PT to $30
• Positive Sentiment: A Seeking Alpha piece argues Mosaic is “cheap” and remains a buy, which can attract value-oriented investors looking past near-term weakness. Seeking Alpha bullish view
• Neutral Sentiment: Mosaic published its Q4 earnings presentation (investor deck) — useful for modelling and guidance clarity but not market-moving by itself relative to the analyst actions below. Q4 earnings presentation
• Negative Sentiment: JPMorgan downgraded MOS to Underweight and cut its target to $24 — the most bearish broker action listed and a direct negative catalyst that could pressure the stock. JPMorgan downgrade
• Negative Sentiment: Morgan Stanley trimmed its price target to $28 from $35 while keeping an Equal Weight rating — a sizable cut in valuation expectations that likely weighs on investor sentiment. Morgan Stanley cuts PT
• Negative Sentiment: RBC lowered its target to $28 from $29 (sector perform) — a small but additional downward revision among brokers. RBC cuts PT
• Negative Sentiment: Zacks and other coverage flag that Mosaic’s Q4 missed EPS and revenue estimates, driven by weaker phosphate margins and volume dynamics — the earnings miss is a fundamental negative that likely prompted some analyst downgrades. Zacks: Q4 miss

Analysts Set New Price Targets

A number of research analysts recently commented on the company. The Goldman Sachs Group increased their target price on Mosaic from $30.00 to $32.00 and gave the company a “buy” rating in a research note on Wednesday, January 21st. HSBC reduced their price objective on Mosaic from $35.00 to $26.00 and set a “hold” rating on the stock in a research report on Monday, November 24th. Canadian Imperial Bank of Commerce dropped their target price on Mosaic from $34.00 to $32.00 and set a “neutral” rating for the company in a research report on Thursday, November 6th. Mizuho upped their target price on Mosaic from $28.00 to $30.00 and gave the stock a “neutral” rating in a research note on Wednesday. Finally, JPMorgan Chase & Co. downgraded shares of Mosaic from a “neutral” rating to an “underweight” rating and set a $24.00 price target on the stock. in a research note on Thursday. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $31.13.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Mosaic by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 39,123,171 shares of the basic materials company’s stock worth $942,477,000 after acquiring an additional 461,524 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Mosaic by 6.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 13,407,136 shares of the basic materials company’s stock worth $322,979,000 after purchasing an additional 830,985 shares during the period. State Street Corp grew its stake in shares of Mosaic by 1.9% in the fourth quarter. State Street Corp now owns 13,174,708 shares of the basic materials company’s stock worth $317,379,000 after purchasing an additional 240,146 shares during the last quarter. Invesco Ltd. grew its stake in shares of Mosaic by 28.9% in the fourth quarter. Invesco Ltd. now owns 11,840,398 shares of the basic materials company’s stock worth $285,235,000 after purchasing an additional 2,653,969 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in Mosaic by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 8,479,395 shares of the basic materials company’s stock valued at $203,916,000 after purchasing an additional 63,822 shares during the period. 77.54% of the stock is owned by hedge funds and other institutional investors.

Mosaic Price Performance

The business has a 50-day simple moving average of $27.13 and a 200 day simple moving average of $28.78. The firm has a market cap of $8.62 billion, a P/E ratio of 16.07, a price-to-earnings-growth ratio of 1.25 and a beta of 0.97. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.40 and a current ratio of 1.32.

Mosaic Company Profile

Mosaic Co is one of the world’s leading producers and marketers of concentrated phosphate and potash crop nutrients. The company’s primary business activities center on the extraction, processing and distribution of phosphate rock, phosphate-based fertilizers and potash products. These core nutrients are essential components in modern agriculture, supporting crop yields and soil health across a range of farming applications.

In its phosphate segment, Mosaic operates mining and production facilities that convert phosphate rock into concentrated phosphates, finished phosphate fertilizers and feed phosphates for animal nutrition.