Hecla Mining (HL) Stock Gains on Increasing Gold Prices - TheStreet

NEW YORK (TheStreet) -- Hecla Mining  (HL) - Get Report stock is increasing by 3.23% to $1.92 in early afternoon trading on Tuesday, as gold prices edge up.

Gold prices are increasing due to safe-haven demand for the precious metal amid geopolitical tensions in the Middle East, the Wall Street Journal reports. Still, the increase was restricted by the expectation that the U.S. Federal Reserve will raise interest rates.

Earlier today, the Turkish military shot down a Russian fighter near the Turkey-Syria border.

"Something like this should've turned the market very significantly...it's showing you just how little interest there is in metals markets," Frank McGhee, head dealer with IntegratedBrokerageServices told the Journal. "The geopolitical risk is being very much overshadowed by the anticipated increase in U.S. rates."

Gold for December delivery is up by 0.80% to $1075.30 per ounce on the COMEX this afternoon.

Based in Coeur d'Alene, ID, Hecla focuses on mining gold, lead, silver and zinc.

Separately, TheStreet Ratings team rates HECLA MINING CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate HECLA MINING CO (HL) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 369.0% when compared to the same quarter one year ago, falling from $3.68 million to -$9.89 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for HECLA MINING CO is rather low; currently it is at 24.07%. It has decreased significantly from the same period last year.
  • The share price of HECLA MINING CO has not done very well: it is down 17.92% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • HECLA MINING CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HECLA MINING CO turned its bottom line around by earning $0.05 versus -$0.08 in the prior year. For the next year, the market is expecting a contraction of 320.0% in earnings (-$0.11 versus $0.05).
  • You can view the full analysis from the report here: HL

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.