Is Hecla (NYSE:HL) outlook positive for June?


USD 3.63  0.35  8.79%   

As many baby boomers are indifferent towards basic materials space, it makes sense to summarize Hecla Mining against current market trends. As we have suggested previously, Hecla Mining is beginning its pull down as stakeholders shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Hecla Mining appear more or less related for the last few months. Steady essential indicators of the company may also denote signals of medium-term gains for Hecla stakeholders. Hecla Mining is scheduled to announce its earnings today.
Published over three months ago
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Hecla Mining's average rating is Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Hecla Mining market sentiment investors' perception of the future value of Hecla. Let us look at a few aspects of Hecla technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Hecla Mining. In general, we focus on analyzing Hecla Mining stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Hecla Mining's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Hecla Mining's intrinsic value. In addition to deriving basic predictive indicators for Hecla Mining, we also check how macroeconomic factors affect Hecla Mining price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hecla Mining's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hecla Mining in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hecla Mining. Your research has to be compared to or analyzed against Hecla Mining's peers to derive any actionable benefits. When done correctly, Hecla Mining's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hecla Mining.

How important is Hecla Mining's Liquidity

Hecla Mining financial leverage refers to using borrowed capital as a funding source to finance Hecla Mining ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hecla Mining financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hecla Mining's total debt and its cash.

How does Hecla utilize its cash?

To perform a cash flow analysis of Hecla Mining, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hecla Mining is receiving and how much cash it distributes out in a given period. The Hecla Mining cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

An Additional Perspective On Hecla Mining

The entity has a beta of 0.5035. Let's try to break down what Hecla's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hecla Mining will likely underperform. The beta indicator helps investors understand whether Hecla Mining moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Hecla deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm generated the yearly revenue of 811.28 M. Reported Net Income was 18.44 M with gross profit of 302.83 M.

Can Hecla Mining correct the new pull down?

The potential upside is down to 5.94 as of today. Hecla Mining exhibits very low volatility with skewness of 0.46 and kurtosis of 1.18. However, we advise investors to further study Hecla Mining technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hecla Mining's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hecla Mining's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Hecla Mining Implied Volatility

Hecla Mining's implied volatility exposes the market's sentiment of Hecla Mining stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hecla Mining's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hecla Mining stock will not fluctuate a lot when Hecla Mining's options are near their expiration.

The Bottom Line

While few other entities in the gold industry are either recovering or due for a correction, Hecla may not be as strong as the others in terms of longer-term growth potentials. While some stakeholders may not share our view, we believe it may be a good time to increase your existing holdings in Hecla as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hecla Mining.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Hecla Mining. Please refer to our Terms of Use for any information regarding our disclosure principles.

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