Amerigo Resources (TSE:ARG) Sets New 12-Month High - Here's Why

Key Points

• Amerigo Resources hit a new 52-week high, trading as high as C$7.93 before closing near C$7.89, up from the prior close of C$7.60.
• The company recently reported quarterly earnings of C$0.13 per share on revenue of C$91.99 million, and analysts expect full-year EPS of about 0.285.
• Amerigo also raised its quarterly dividend to C$0.18 per share, implying a 9.2% annualized yield and a significant increase from the previous C$0.04 quarterly payout.

Amerigo Resources Ltd. (TSE:ARG - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as C$7.93 and last traded at C$7.89, with a volume of 365578 shares. The stock had previously closed at C$7.60.

Amerigo Resources Price Performance

The stock has a market cap of C$1.27 billion, a price-to-earnings ratio of 28.07, a price-to-earnings-growth ratio of 0.32 and a beta of 2.15. The firm's 50-day moving average is C$6.64 and its 200 day moving average is C$6.01.

Amerigo Resources (TSE:ARG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported C$0.13 earnings per share for the quarter. The firm had revenue of C$91.99 million for the quarter. Amerigo Resources had a return on equity of 42.44% and a net margin of 15.26%. On average, sell-side analysts forecast that Amerigo Resources Ltd. will post 0.2850394 EPS for the current year.

Amerigo Resources Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 6th. Investors of record on Thursday, August 6th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 9.2%. The ex-dividend date is Monday, July 13th. This is a positive change from Amerigo Resources's previous quarterly dividend of $0.04. Amerigo Resources's dividend payout ratio (DPR) is presently 49.30%.

Insiders Place Their Bets

In related news, Director Robert Gayton sold 50,000 shares of the firm's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of C$7.29, for a total transaction of C$364,500.00. Following the completion of 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 position. Also, insider Kimberly Thomas sold 8,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of C$7.07, for a total value of C$56,560.00. Following the sale, the insider owned 22,118 shares of the company's stock, valued at C$156,374.26. This represents a 26.56% decrease in their ownership of the stock. Insiders have sold a total of 158,000 shares of company stock worth $1,101,068 over the last quarter. 12.95% of the stock is owned by corporate 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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