Hecla Mining Sees Surge in Options Trading Amid Insider Sale

Hecla Mining Company (NYSE:HL) experienced a significant increase in options trading activity on Thursday, with traders purchasing a total of 47,893 call options. This figure marks a rise of approximately 43% compared to the average volume of 33,413 call options, indicating heightened investor interest in the stock.

Insider Activity and Stock Performance

In related news, Vice President Stuart Maurice Absolom sold 14,472 shares of Hecla Mining on September 12, 2023, at an average price of $11.29, totaling approximately $163,388.88. Following this transaction, Absolom retained ownership of 73,200 shares, valued at about $826,428. This sale represented a 16.51% reduction in his stake in the company, as disclosed in a filing with the Securities & Exchange Commission.

Insider ownership of Hecla Mining is currently at 0.62%. In the institutional investment arena, several firms have adjusted their stakes in the company. Notably, Pale Fire Capital SE acquired a new position worth approximately $41.36 million in the first quarter. Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 40.6% during the second quarter, now owning over 17 million shares valued at around $102.14 million.

Nuveen LLC and Principal Financial Group Inc. also made significant moves, with Principal Financial increasing its stake by an impressive 7,588.1% in the third quarter, amassing nearly $38.59 million in shares. Institutional investors collectively hold 63.01% of Hecla Mining’s stock.

Company Performance and Future Outlook

On Friday, the stock opened at $13.57, showing a notable increase of 12%. Over the past year, shares have fluctuated between a low of $4.46 and a high of $15.44. Hecla Mining has a market capitalization of $9.09 billion, a debt-to-equity ratio of 0.23, and a current ratio of 2.67.

The company recently reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $0.12, surpassing the consensus estimate of $0.11. Revenue for the quarter reached $409.54 million, significantly higher than the anticipated $315.60 million. This represents a 67.1% increase in quarterly revenue compared to the same period last year.

Analysts forecast an EPS of $0.21 for the current fiscal year, indicating positive growth potential for Hecla Mining.

In addition, the company announced a quarterly dividend to be paid on December 8, 2023. Investors on record as of November 24, 2023, will receive a dividend of $0.0038 per share, equating to an annualized dividend of $0.02 and a yield of 0.1%. The dividend payout ratio currently stands at 3.23%.

Analysts have varied opinions on Hecla Mining’s stock. CIBC raised its price target from $12.50 to $15.00, while Weiss Ratings maintained a “hold” rating. BMO Capital Markets adjusted its target from $6.00 to $6.50 with a “market perform” rating. The overall consensus rating is currently “Hold,” with an average price target of $9.32.

Hecla Mining, with its subsidiaries, focuses on precious and base metal mining in the United States, Canada, Japan, Korea, and China, extracting silver, gold, lead, and zinc concentrates. The current trading dynamics and institutional interest may indicate a promising trajectory for the company as it navigates the market landscape.