Alamos Gold (NYSE:AGI) Trading Down 7.8% - Should You Sell?

Key Points

• Alamos Gold's shares dropped by 7.8% during mid-day trading, with a significant decline in trading volume compared to previous sessions.
• Analyst ratings are mixed, with a consensus rating of "Buy" but differing price targets; Bank of America raised their price target to $43.00.
• The company reported $438.20 million in revenue for the last quarter, exceeding expectations and showing a 31.7% increase from the previous year.

Alamos Gold Inc. (NYSE:AGI - Get Free Report) TSE: AGI shares traded down 7.8% during mid-day trading on Friday . The company traded as low as $34.51 and last traded at $34.56. 1,253,617 shares were traded during trading, a decline of 65% from the average session volume of 3,544,238 shares. The stock had previously closed at $37.47.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Stifel Canada raised shares of Alamos Gold to a "strong-buy" rating in a research report on Tuesday, July 8th. Wall Street Zen cut shares of Alamos Gold from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Bank of America raised their price objective on shares of Alamos Gold from $40.00 to $43.00 and gave the stock a "buy" rating in a research note on Thursday. Stifel Nicolaus began coverage on shares of Alamos Gold in a research note on Wednesday, July 9th. They set a "buy" rating on the stock. Finally, CIBC reaffirmed an "outperform" rating on shares of Alamos Gold in a research note on Tuesday, July 15th. Three analysts have rated the stock with a Strong Buy rating and eight have issued a Buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $35.33.

Alamos Gold Stock Performance

The stock has a market capitalization of $14.40 billion, a PE ratio of 41.12, a price-to-earnings-growth ratio of 0.70 and a beta of 0.50. The company has a current ratio of 1.49, a quick ratio of 1.00 and a debt-to-equity ratio of 0.07. The firm's fifty day moving average is $31.43 and its 200-day moving average is $28.23.

Alamos Gold (NYSE:AGI - Get Free Report) TSE: AGI last released its earnings results on Wednesday, July 30th. The basic materials company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.01. Alamos Gold had a return on equity of 10.67% and a net margin of 22.99%.The company had revenue of $438.20 million during the quarter, compared to the consensus estimate of $400.61 million. During the same period in the previous year, the company posted $0.24 EPS. Alamos Gold's revenue was up 31.7% compared to the same quarter last year. As a group, research analysts anticipate that Alamos Gold Inc. will post 1.29 earnings per share for the current year.

Alamos Gold Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 25th. Investors of record on Thursday, September 11th were issued a $0.025 dividend. This represents a $0.10 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Thursday, September 11th. Alamos Gold's dividend payout ratio is 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 the business. Vanguard Group Inc. boosted its holdings in Alamos Gold by 1.3% in the first quarter. Vanguard Group Inc. now owns 16,210,671 shares of the basic materials company's stock valued at $433,133,000 after purchasing an additional 214,933 shares in the last quarter. CIBC Asset Management Inc boosted its holdings in Alamos Gold by 29.3% in the second quarter. CIBC Asset Management Inc now owns 11,132,337 shares of the basic materials company's stock valued at $296,623,000 after purchasing an additional 2,521,347 shares in the last quarter. Mackenzie Financial Corp boosted its holdings in Alamos Gold by 32.3% in the second quarter. Mackenzie Financial Corp now owns 8,979,615 shares of the basic materials company's stock valued at $238,990,000 after purchasing an additional 2,192,593 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its holdings in Alamos Gold by 19.5% in the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 5,866,755 shares of the basic materials company's stock valued at $156,780,000 after purchasing an additional 957,359 shares in the last quarter. Finally, Norges Bank acquired a new position in Alamos Gold in the second quarter valued at approximately $144,808,000. 64.33% of the stock is owned by institutional investors and hedge funds.

About Alamos Gold

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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