uploads///Intrepid Potashs Performance Against the SP

Intrepid Potash Rose Due to Analyst Upgrade on February 13

By

Dec. 4 2020, Updated 10:50 a.m. ET

Intrepid Potash rose

On February 13, Intrepid Potash (IPI) rose 15.2% and closed at $2.27 from the previous day’s close, while the S&P 500 Index (SPY) (SPX-INDEX) closed just 52 basis points higher. The stock rose mainly because it received an upgrade in the price target from UBS earlier in the day. Intrepid Potash, Mosaic (MOS), PotashCorp (POT), and Agrium (AGU) also closed in positive territory—compared to their close the previous day.

Read Intrepid Potash: What Lies ahead for This Battered Stock? to learn more about how Intrepid Potash struggled over the last year.

Article continues below advertisement

What’s hurting Intrepid Potash?

Yesterday, the rise put Intrepid Potash’s YTD (year-to-date) performance above the S&P 500 Index and the VanEck Vectors Agribusiness ETF’s (MOO) YTD performance, as you can see in the above chart. However, Intrepid Potash hasn’t had a smooth run in the past few quarters primarily because of weak potash prices.

Potash prices came under pressure because of production overcapacity in the industry. For some, including Intrepid Potash, the cost of production might have even exceeded the selling price of potash. It was evident when the company opted to idle 42% of its production capacity in July 2016.

In the next part, we’ll discuss the analyst upgrade in more detail along with the consensus recommendation for the stock.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.