Mineral Resources shares jump 5% today: Buy, sell or hold?

The lithium miner posted its strongest-ever financial result this morning.

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Mineral Resources Ltd (ASX: MIN) shares are jumping higher in morning trade on Thursday.

At the time of writing, the shares are up around 5% for the day and are changing hands for $69.94 a piece.

At one point earlier this morning, the shares were trading as high as $70.48 each.

Today's increase follows an incredible rally over the past month, where Mineral Resources shares have climbed 28%.

It's great news for investors after a volatile run for the ASX miner so far this year. The shares have swung wildly, ranging from $23.12 to $74.94 over the past 12 months.

For the year to date, the shares are up 26% and a huge 87% higher than 12 months ago.

Two miners laughing and having fun while using smart phone during their coffee break.

Image source: Getty Images

Why are investors snapping up the shares today?

Mineral Resources posted its FY26 earnings results to the ASX this morning.

The lithium miner reported a 44% year-on-year increase in revenue, an 183% increase in underlying EBITDA, an 831% increase in underlying NPAT, and a 236% increase in reported NPAT.

Management also announced it would bring back shareholder dividends. For FY26, the miner will pay a fully-franked dividend of 83 cents per share.

The announcement makes history as the company's strongest-ever annual results.

Mineral Resources said its record performance was driven by growth in the company's Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in its lithium operations. 

The company's net debt fell by $1.1 billion to $4.3 billion, with liquidity doubling to $2.4 billion.

The miner plans to continue growth across every operating division in FY27.

It looks like investors are impressed with the update, and many are loading up on shares this morning.

Are Mineral Resources shares a buy, sell, or hold following its FY26 results announcement?

I expect market experts may revise their forecasts for the Mineral Resources share price in the coming days following the results announcement.

At the time of writing, it looks like the majority are very bullish on where the shares can go over the next 12 months, but after the latest rally, average target prices mostly imply some element of downside ahead.

Market Index data shows that the majority of brokers have a buy rating, but the average target price of $65.71 now implies around a 6% downside at the time of writing.

Similarly, on TradingView, the majority (nine out of 16) have a buy/strong buy rating on the lithium miner's shares. The average $68.40 target price implies a downside of around 2%, at the time of writing.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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