Managers at Hecla Mining Co. (HL, Financial) have been awarded restricted stock units (RSUs) at a price of $3.83 per share, according to filings with the Securities and Exchange Commission.
The restricted stock units will be vested based on the following schedule: A total of 39,164 shares will be vested on June 21, 2019. A total of 39,164 shares will be vested on June 21, 2020. A total of 39,165 shares will be vested on June 21, 2021.
Following the transaction, Lawrence P. Radford, who is senior vice president and chief operating officer, directly holds 274,303 unvested RSUs. Also, Radford indirectly holds 20,350 shares under the capital accumulation plan of Hecla Mining. Radford has 98,772 performance units. The distribution of units is based on Hecla Mining's performance compared to its peers.
Lindsay A. Hall, senior vice president and chief financial officer, has a direct ownership of 174,020 unvested RSUs and 63,524 performance units.
Robert Brown, vice president of corporate development, directly holds 116,595 unvested RSUs. Plus, 42,461 performance units.
Dean W. A. McDonald, senior vice president of exploration, has direct ownership of 202,818 unvested RSUs and performance rights on 47,572 units.
David C. Sienko, vice president and general counsel, holds 116,299 unvested RSUs and indirectly holds 6,209 shares under the capital accumulation plan. He also has 35,933 performance units.
Hecla Mining CEO Phillips S. Baker Jr. has been granted a direct ownership of 359,791 unvested RSUs to date. He also has an indirect holding of 24,893 shares under the company’s 401,000 accumulation plan and has rights on 372,509 performance units for a direct ownership.
It is important for investors to know that Hecla Mining executives hold unvested restricted stock units and performance shares. This typically means that the executives will be more prone to act in the interest of shareholders.
Executives' compensations is also tied to the company's operating and financial performance, which impacts the market value of the stock.
The shareholders of Hecla Mining are mostly remunerated through stock appreciation.
Shares of Hecla Mining Company fell 10% to $3.83 per share on June 20. The stock has underperformed the Van Eck Vectors Gold Miners ETF (GDX) by 2%:
The current share price is just 58 cents over the 52-week low of $3.25 and 45.7%, which is far from the 52-week high of $5.58 per share.
The stock has a price-book ratio of 1.03 times versus an industry median of 2.06 times and an enterprise value to earnings before interest taxes depreciation and amortization (Ebitda) ratio of 10.87 times versus an industry average of 9.9 times.
Over the trailing 12 months, when gold averaged $1,284.59 per troy ounce on the London Bullion Market, Hecla Mining delivered an Ebitda margin of 27.9%. The industry averaged 25%. Hecla Mining is an option in the gold stock industry, commodity permitting.
Hecla Mining reported a forward dividend of one cent, granting 0.26% versus an industry median of 1.18%.
The recommendation rating is 2.6 out of 5. As of Wednesday, June 20, there were three analysts who suggest a ‘Buy’ to ‘Strong Buy’ approach. A total of seven analysts recommend holding the stock. There is only one analyst who predicts an underperforming stock within the following 52-weeks of trading.
The average target price is $4.99 per share. That is a mean of a total of 40 estimates that range from $3.90 to $7.50 per share.
(Disclosure: I have no positions in the securities mentioned in this article.)
