Alamos Gold (NYSE:AGI) Shares Down 4.7% - Should You Sell?

Key Points

• Alamos Gold's shares declined by 4.7% during trading, with the last trade recorded at $31.88, significantly lower than the previous close of $33.43.
• Despite the recent drop, analysts maintain a consensus rating of "Buy" with a target price of $30.38, and various ratings have been updated by firms such as Stifel Nicolaus and Wall Street Zen.
• The company recently announced a quarterly dividend of $0.025, with a low payout ratio of 12.05%, indicating potential for future growth.

Alamos Gold Inc. (NYSE:AGI - Get Free Report) TSE: AGI shares were down 4.7% during trading on Tuesday . The company traded as low as $31.70 and last traded at $31.88. Approximately 1,713,917 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 3,439,019 shares. The stock had previously closed at $33.43.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Stifel Nicolaus assumed coverage on Alamos Gold in a research note on Wednesday, July 9th. They set a "buy" rating for the company. Stifel Canada upgraded shares of Alamos Gold to a "strong-buy" rating in a report on Tuesday, July 8th. Wall Street Zen downgraded shares of Alamos Gold from a "buy" rating to a "hold" rating in a research report on Saturday, August 16th. CIBC reiterated an "outperform" rating on shares of Alamos Gold in a research report on Tuesday, July 15th. Finally, National Bankshares restated an "outperform" rating on shares of Alamos Gold in a report on Tuesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $30.38.

Alamos Gold Stock Performance

The firm has a market capitalization of $13.25 billion, a price-to-earnings ratio of 38.05, a price-to-earnings-growth ratio of 0.72 and a beta of 0.55. The firm's 50-day moving average price is $27.76 and its two-hundred day moving average price is $26.87. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.00 and a current ratio of 1.49.

Alamos Gold (NYSE:AGI - Get Free Report) TSE: AGI last announced its quarterly earnings results on Wednesday, July 30th. The basic materials company reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.01. Alamos Gold had a net margin of 22.99% and a return on equity of 10.67%. The firm had revenue of $438.20 million during the quarter, compared to analysts' expectations of $400.61 million. During the same quarter last year, the company earned $0.24 earnings per share. The company's revenue for the quarter was up 31.7% compared to the same quarter last year. Sell-side analysts predict that Alamos Gold Inc. will post 1.29 earnings per share for the current year.

Alamos Gold Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, September 11th will be issued a $0.025 dividend. The ex-dividend date of this dividend is Thursday, September 11th. This represents a $0.10 annualized dividend and a dividend yield of 0.3%. Alamos Gold's dividend payout ratio is presently 12.05%.

Hedge Funds Weigh In On Alamos Gold

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AGI. Wealth Enhancement Advisory Services LLC bought a new position in shares of Alamos Gold in the first quarter valued at approximately $320,000. Brown Advisory Inc. boosted its stake in Alamos Gold by 9.3% in the first quarter. Brown Advisory Inc. now owns 11,782 shares of the basic materials company's stock worth $315,000 after purchasing an additional 1,000 shares in the last quarter. LBP AM SA bought a new stake in shares of Alamos Gold during the first quarter worth $1,155,000. Amundi increased its stake in shares of Alamos Gold by 12.1% in the first quarter. Amundi now owns 1,806,696 shares of the basic materials company's stock valued at $48,546,000 after buying an additional 195,329 shares in the last quarter. Finally, Goehring & Rozencwajg Associates LLC raised its holdings in shares of Alamos Gold by 2.3% in the first quarter. Goehring & Rozencwajg Associates LLC now owns 1,223,257 shares of the basic materials company's stock valued at $31,915,000 after buying an additional 27,032 shares during the last quarter. 64.33% of the stock is currently owned by institutional investors and hedge funds.

Alamos Gold Company Profile

Alamos Gold Inc engages in the acquisition, exploration, development, and extraction of precious metals in Canada and Mexico. The company primarily explores for gold deposits. It holds 100% interest in the Young-Davidson mine and Island Gold mine located in the Ontario, Canada; Mulatos mine located in the Sonora, Mexico; and Lynn Lake project situated in the Manitoba, Canada.

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