A share of Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) closed at $99.38 per share on Wednesday, up from $97.14 day before. While Sociedad Quimica y Minera de Chile S.A. has overperformed by 2.31%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, SQM rose by 53.41%, with highs and lows ranging from $115.76 to $44.88, whereas the simple moving average jumped by 11.54% in the last 200 days.
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On March 31, 2022, Morgan Stanley Downgraded Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM) to Underweight. A report published by Loop Capital on January 25, 2022, Initiated its previous ‘Buy’ rating for SQM. Morgan Stanley also Upgraded SQM shares as ‘Equal-Weight’, setting a target price of $58 on the company’s shares in a report dated January 13, 2022. BofA Securities December 20, 2021d the rating to Underperform on December 20, 2021, and set its price target from $67 to $50. JP Morgan initiated its ‘Overweight’ rating for SQM, as published in its report on October 26, 2021. BofA Securities’s report from September 29, 2021 suggests a price prediction of $67 for SQM shares, giving the stock a ‘Neutral’ rating. Morgan Stanley also rated the stock as ‘Underweight’.
Analysis of Sociedad Quimica y Minera de Chile S.A. (SQM)
It’s important to note that SQM shareholders are currently getting $4.55 per share in dividends, so investors will receive a return regardless of how the company performs. Further, the quarter-over-quarter increase in sales is 347.10%, showing a positive trend in the upcoming months.
Sociedad Quimica y Minera de Chile S.A.’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. The goal here is to ensure that your current return on equity of 84.70% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.60, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can be an extremely valuable indicator of volatility, and SQM is registering an average volume of 1.69M. On a monthly basis, the volatility of the stock is set at 4.76%, whereas on a weekly basis, it is put at 6.22%, with a loss of -0.44% over the past seven days. Furthermore, long-term investors anticipate a median target price of $115.88, showing growth from the present price of $99.38, which can serve as yet another indication of whether SQM is worth investing in or should be passed over.
How Do You Analyze Sociedad Quimica y Minera de Chile S.A. Shares?
A giant in the Chemicals market, Sociedad Quimica y Minera de Chile S.A. (SQM) is based in the Chile. When comparing Sociedad Quimica y Minera de Chile S.A. shares with other companies under Basic Materials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 9.23, there is a growth in quarterly earnings of 936.50%.
Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 72.40%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 40.80% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in SQM shares?
The recent increase in stakes in SQM appears to be a result of several institutional investors and hedge funds increasing their positions. Capital Research & Management Co’s position in SQM has increased by 6.27% in the first quarter. The company now owns 7,067,111 shares of the stock, with a value of $662.05 million, following the purchase of 416,893 additional shares during the last quarter. Global X Management Co. LLC made another decreased to its shares in SQM during the first quarter, downing its stake by -3.44%. During the last quarter, the company dropped down -99,744 additional shares for a total stake of worth $262.16 million, bringing number of shares owned by the company to 2,798,487.
During the first quarter, BlackRock Investment Management subtracted a -131,112 position in SQM. Fidelity Management & Research Co sold an additional -0.49 million shares in the last quarter, decreasing its holdings by -18.11%, now holding 2.22 million shares worth $207.73 million. At the end of the first quarter, RWC Asset Advisors decreased its SQM holdings by -10.47% and now holds 1.61 million SQM shares valued at $150.95 million with the lessened -0.19 million shares during the period. SQM shares are owned by institutional investors to the tune of 40.80% at present.