Amerigo Resources (TSE:ARG) Stock Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Amerigo Resources shares moved above their 200-day moving average, reaching C$7.27 before last trading at C$6.73, compared with the 200-day average of C$6.12.
• The company reported quarterly EPS of C$0.16 on revenue of C$109.93 million, with a 15.26% net margin and 42.44% return on equity.
• Amerigo sharply increased its quarterly dividend to C$0.18 from C$0.04, implying an annualized dividend of C$0.72 and a 10.7% yield; meanwhile, insiders sold 158,000 shares over the past 90 days.

Shares of Amerigo Resources Ltd. (TSE:ARG - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of C$6.12 and traded as high as C$7.27. Amerigo Resources shares last traded at C$6.73, with a volume of 1,072,267 shares.

Amerigo Resources Price Performance

The stock has a market cap of C$1.09 billion, a price-to-earnings ratio of 24.04, a P/E/G ratio of 0.32 and a beta of 2.15. The company's fifty day moving average price is C$6.73 and its 200-day moving average price is C$6.12.

Amerigo Resources (TSE:ARG - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported C$0.16 EPS for the quarter. The company had revenue of C$109.93 million during the quarter. Amerigo Resources had a net margin of 15.26% and a return on equity of 42.44%. On average, sell-side analysts forecast that Amerigo Resources Ltd. will post 0.2850394 earnings per share for the current fiscal year.

Amerigo Resources Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 6th. Shareholders of record on Thursday, August 6th will be issued a $0.18 dividend. This is an increase from Amerigo Resources's previous quarterly dividend of $0.04. This represents a $0.72 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date of this dividend is Monday, July 13th. Amerigo Resources's dividend payout ratio is 49.30%.

Insider Transactions at Amerigo Resources

In other news, Director Robert Gayton sold 50,000 shares of the business'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 sale, the director directly owned 143,740 shares of the company's stock, valued at C$1,047,864.60. The trade was a 25.81% decrease in their ownership of the stock. Also, insider Kimberly Thomas sold 4,200 shares of the company's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of C$6.67, for a total value of C$28,014.00. Following the completion of the transaction, the insider directly owned 17,118 shares in the company, valued at approximately C$114,177.06. The trade was a 19.70% decrease in their ownership of the stock. Over the last ninety days, insiders sold 158,000 shares of company stock worth $1,101,068. Company insiders own 12.95% of the company's stock.

About Amerigo Resources

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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