Amerigo Resources (TSE:ARG) Reaches New 52-Week High - Should You Buy?

Key Points

• Amerigo Resources reached a new 52-week high, trading as high as C$7.94 before closing near C$7.92, giving the company a market capitalization of approximately C$1.28 billion.
• The company reported quarterly earnings of C$0.16 per share on C$109.93 million in revenue, with an 18.55% net margin and 50.54% return on equity.
• Amerigo declared a quarterly dividend of C$0.04, equivalent to a 2.0% annual yield, while insiders sold 158,000 shares over the last quarter—potentially a consideration for investors evaluating the stock after its rally.

Shares of Amerigo Resources Ltd. (TSE:ARG - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as C$7.94 and last traded at C$7.92, with a volume of 834113 shares. The stock had previously closed at C$7.57.

Amerigo Resources Stock Performance

The firm has a market capitalization of C$1.28 billion, a P/E ratio of 23.35, a P/E/G ratio of 0.32 and a beta of 2.16. The stock's 50 day simple moving average is C$6.77 and its 200 day simple moving average is C$6.17.

Amerigo Resources (TSE:ARG - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported C$0.16 earnings per share for the quarter. The business had revenue of C$109.93 million for the quarter. Amerigo Resources had a net margin of 18.55% and a return on equity of 50.54%. On average, analysts anticipate that Amerigo Resources Ltd. will post 0.2850394 earnings per share for the current year.

Amerigo Resources Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 18th will be given a $0.04 dividend. This represents a $0.16 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, August 28th. Amerigo Resources's dividend payout ratio is presently 77.12%.

Insider Buying and Selling

In other Amerigo Resources news, Director Robert Gayton sold 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of C$7.29, for a total value of C$364,500.00. Following the sale, the director directly owned 143,740 shares of the company's stock, valued at approximately C$1,047,864.60. This trade represents a 25.81% decrease in their ownership of the stock. Also, insider Carmen Amezquita sold 25,000 shares of Amerigo Resources stock in a transaction dated Monday, June 1st. The stock was sold at an average price of C$6.93, for a total value of C$173,250.00. Following the completion of the sale, the insider owned 8,939 shares in the company, valued at approximately C$61,947.27. The trade was a 73.66% decrease in their ownership of the stock. Insiders sold 158,000 shares of company stock valued at $1,101,068 over the last quarter. 12.95% of the stock is currently owned by company insiders.

Amerigo Resources Company Profile

Amerigo is an innovative copper producer with a long-term relationship, through its fully-owned subsidiary Minera Valle Central ('MVC'), with Corporación Nacional del Cobre de Chile ('Codelco'), the world's largest copper producer. Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine.

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