Drilling Down Into the Volatility in Sociedad Quimica y Minera de Chile S.A. (SQM)

On Tuesday, shares of Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) marked $27.62 per share versus a previous $27.18 closing price. With having a 1.62% gain, an insight into the fundamental values of Sociedad Quimica y Minera de Chile S.A., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. SQM showed a fall of -27.89% within its YTD performance, with highs and lows between $25.72 – $48.80 during the period of 52 weeks, compared to the simple moving average of -26.28% in the period of the last 200 days.

Morgan Stanley equity researchers changed the status of Sociedad Quimica y Minera de Chile S.A. (NYSE: SQM) shares from “Underweight” to a “Equal-Weight” rating in the report published on July 12th, 2019. Other analysts, including BMO Capital Markets, also published their reports on SQM shares. BMO Capital Markets repeated the rating from the previous report, marking SQM under “Market Perform” rating, in the report published on May 24th, 2019. Additionally, SQM shares got another “Neutral” rating from BofA/Merrill. On the other hand, JP Morgan Downgrade the “Neutral” rating for SQM shares, as published in the report on March 1st, 2019. Deutsche Bank seems to be going bullish on the price of SQM shares, based on the price prediction for SQM. Another “Buy” rating came from HSBC Securities.

Sociedad Quimica y Minera de Chile S.A. (SQM) Analysis

The present dividend yield for SQM owners is set at 0.07, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with Sociedad Quimica y Minera de Chile S.A., the company needs to provide a healthy cash flow, currently at the value of 622.50. In addition, the growth of sales from quarter to quarter is recording -2.80%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Sociedad Quimica y Minera de Chile S.A. (SQM) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 19.50% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while SQM is currently recording an average of 751.67K in volumes. The volatility of the stock on monthly basis is set at 3.39%, while the weekly volatility levels are marked at 4.80%with 5.38% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $42.58, indicating growth from the present price of $27.62, which can represent yet another valuable research and analysis points that can help you decide whether to invest in SQM or pass.

What to Look for When Analyzing Sociedad Quimica y Minera de Chile S.A. Shares?

Sociedad Quimica y Minera de Chile S.A. (SQM) is based in the Chile and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare SQM shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 17.88 for Sociedad Quimica y Minera de Chile S.A., while the value 15.97 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.55 is supported by the yearly ESP growth of 2.80%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 72.40%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 28.20% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in SQM Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in SQM in the recent period. That is how EARNEST Partners LLC now has an increase position in SQM by 0.17% in the first quarter, owning 2 million shares of SQM stocks, with the value of $58.94 million after the purchase of an additional 3,375 shares during the last quarter. In the meanwhile, Global X Management Co. LLC also increased their stake in SQM shares changed 0.00% in the first quarter, which means that the company now owns 1.59 million shares of company, all valued at $46.85 million after the acquisition of additional 0 shares during the last quarter.

Macquarie Investment Management B acquired a new position in Sociedad Quimica y Minera de Chile S.A. during the first quarter, with the value of $36.3 million, and ClearBridge Investments LLC increased their stake in the company’s shares by 33.44% in the first quarter, now owning 249,333 shares valued at $29.34 million after the acquisition of the additional 994919 shares during the last quarter. In the end, RWC Asset Advisors increased their position by 2.93% during the first quarter, now owning 958677 SQM shares, now holding the value of $28.27 million in SQM with the purchase of the additional 958,677 shares during the period of the last quarter. At the present, 28.20% of SQM shares are in the ownership of institutional investors.