Compass Minerals International (NYSE:CMP) Trading Down 17.2% Following Weak Earnings

Compass Minerals International, Inc. (NYSE:CMP)’s share price dropped 17.2% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $23.09 and last traded at $24.8790. 209,006 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 555,124 shares. The stock had previously closed at $30.03.

The basic materials company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.08). Compass Minerals International had a net margin of 0.55% and a return on equity of 8.99%. The company had revenue of $215.30 million during the quarter, compared to the consensus estimate of $207.75 million. During the same quarter in the prior year, the firm posted ($0.39) earnings per share. The business’s revenue was up .3% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on CMP. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $35.00 price objective on shares of Compass Minerals International in a research note on Wednesday, May 27th. JPMorgan Chase & Co. upgraded Compass Minerals International from an “underweight” rating to a “neutral” rating and lifted their target price for the stock from $20.00 to $30.00 in a report on Thursday, May 14th. Zacks Research downgraded Compass Minerals International from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 4th. Compass Point set a $30.00 price target on Compass Minerals International in a report on Thursday, May 14th. Finally, Wall Street Zen downgraded Compass Minerals International from a “buy” rating to a “hold” rating in a research report on Sunday. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $28.80.

Institutional Investors Weigh In On Compass Minerals International

Hedge funds and other institutional investors have recently modified their holdings of the business. Irenic Capital Management LP purchased a new stake in Compass Minerals International in the first quarter worth $33,520,000. Aristeia Capital L.L.C. lifted its position in shares of Compass Minerals International by 87.7% during the fourth quarter. Aristeia Capital L.L.C. now owns 56,439 shares of the basic materials company’s stock worth $1,108,000 after purchasing an additional 26,371 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of Compass Minerals International by 105.9% during the fourth quarter. SG Americas Securities LLC now owns 45,228 shares of the basic materials company’s stock valued at $888,000 after purchasing an additional 23,261 shares during the period. Krilogy Financial LLC grew its holdings in shares of Compass Minerals International by 188.7% in the first quarter. Krilogy Financial LLC now owns 58,651 shares of the basic materials company’s stock worth $1,516,000 after purchasing an additional 38,335 shares during the last quarter. Finally, SailingStone Capital Partners LLC grew its holdings in shares of Compass Minerals International by 6.1% in the fourth quarter. SailingStone Capital Partners LLC now owns 5,414,067 shares of the basic materials company’s stock worth $106,332,000 after purchasing an additional 308,957 shares during the last quarter. 99.78% of the stock is currently owned by hedge funds and other institutional investors.

Compass Minerals International Stock Down 15.3%

The company has a market cap of $1.07 billion, a PE ratio of 167.05 and a beta of 1.23. The company’s 50 day moving average is $30.16 and its 200 day moving average is $26.87. The company has a current ratio of 2.06, a quick ratio of 1.34 and a debt-to-equity ratio of 2.60.

About Compass Minerals International

Compass Minerals International, Inc is a global producer of essential mineral-based products, primarily known for its salt and plant nutrition portfolios. The company’s deicing salts are used by municipalities and commercial customers across North America to maintain safer roadways in winter months. In addition, its water conditioning salts serve both residential and industrial users, supporting water treatment systems that remove hard minerals to protect plumbing and equipment.

Beyond conventional salt products, Compass Minerals has developed a specialty plant nutrition business focused on sulfate of potash (SOP), a premium fertilizer that provides both potassium and sulfur to crops.