SQM stock touches 52-week low at $31.05 amid market shifts

Published 30/05/2025, 14:38
SQM stock touches 52-week low at $31.05 amid market shifts

Sociedad Química y Minera de Chile (SQM), a leading global supplier of plant nutrients, iodine, lithium, and industrial chemicals, saw its stock price touch a 52-week low, dipping to $31.05. The $9 billion market cap company, which maintains a P/E ratio of 14.85 and generates annual revenues of $4.48 billion, appears undervalued according to InvestingPro analysis. This latest price level reflects a significant downturn from the company’s performance over the past year, with the Soc Quimica ADR (NYSE:SQM) witnessing a 1-year change of -33.66%. The decline in SQM’s stock price can be attributed to a variety of market factors, including industry-specific challenges and broader economic conditions that have affected investor sentiment. As stakeholders and analysts review the implications of this 52-week low, the company’s strategic responses and market developments will be closely monitored for signs of recovery or further adjustments. Notable strengths include a 31-year track record of consistent dividend payments and analyst price targets reaching as high as $78. For detailed analysis and additional insights, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities.

In other recent news, Sociedad Quimica y Minera (SQM) reported its first-quarter 2025 earnings, which fell short of analyst expectations, with adjusted earnings per share at $0.48 compared to the projected $0.61. However, the company’s revenue slightly exceeded estimates, coming in at $1.04 billion against the expected $1.02 billion, though this was a 4.4% decrease year-over-year from $1.08 billion. Despite the earnings miss, SQM achieved record first-quarter lithium sales volumes, driven by strong demand from electric vehicles and energy storage systems. CEO Ricardo Ramos noted a decline in lithium prices due to oversupply, with expectations of lower realized prices in the second quarter. The iodine segment performed well, with stable sales volumes and high prices due to limited global supply. In terms of analyst assessments, BMO Capital Markets adjusted its price target for SQM to $45, maintaining an Outperform rating, citing a recalibration of earnings estimates for 2025 and 2026. Jefferies also lowered its price target to $51 while maintaining a Buy rating, noting a softer near-term outlook for the lithium segment but highlighting strong performance in the iodine division. Additionally, SQM is moving forward with its Coldelco agreement and expanding its production capacity, including its Mount Holland refinery plant set to deliver its first product soon.

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