Endeavour Silver (NYSE:EXK) Shares Gap Down - Should You Sell?

Key Points

• Stock gapped down 8.9% — EXK opened at $10.90 after closing at $11.88 and last traded around $10.71 on heavy volume (~3.84M shares).
• Analyst consensus is "Buy" with a $13.88 average price target, supported by multiple buy/strong-buy ratings despite some mixed views among analysts.
• Company fundamentals show weakness — Q3 results missed expectations (EPS of -$0.01 vs. $0.05 estimate, revenue $111.4M vs. $162.05M), a negative net margin (~31%) and an expected FY EPS of -$0.07.

Endeavour Silver Corporation (NYSE:EXK - Get Free Report) TSE: EDR's stock price gapped down prior to trading on Thursday . The stock had previously closed at $11.88, but opened at $10.90. Endeavour Silver shares last traded at $10.7120, with a volume of 3,842,502 shares traded.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on EXK. Natl Bk Canada raised Endeavour Silver to a "strong-buy" rating in a research report on Tuesday, December 9th. BMO Capital Markets restated an "outperform" rating on shares of Endeavour Silver in a research report on Monday, January 19th. Industrial Alliance Securities set a $11.00 price target on Endeavour Silver in a report on Friday, January 9th. CIBC reaffirmed an "outperform" rating on shares of Endeavour Silver in a research note on Wednesday. Finally, Zacks Research upgraded shares of Endeavour Silver from a "strong sell" rating to a "hold" rating in a research note on Monday, January 12th. Five equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Endeavour Silver presently has a consensus rating of "Buy" and a consensus price target of $13.88.

Endeavour Silver Stock Down 8.9%

The stock has a market cap of $3.20 billion, a price-to-earnings ratio of -31.75 and a beta of 1.23. The firm's 50-day moving average is $10.46 and its 200 day moving average is $8.15. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.79 and a quick ratio of 0.57.

Endeavour Silver (NYSE:EXK - Get Free Report) TSE: EDR last released its earnings results on Friday, November 7th. The mining company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.06). The business had revenue of $111.40 million for the quarter, compared to the consensus estimate of $162.05 million. Endeavour Silver had a negative net margin of 31.18% and a negative return on equity of 1.34%. Sell-side analysts anticipate that Endeavour Silver Corporation will post -0.07 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Endeavour Silver

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Trek Financial LLC acquired a new position in shares of Endeavour Silver in the fourth quarter valued at about $4,520,000. Swiss Life Asset Management Ltd lifted its holdings in Endeavour Silver by 15.6% in the fourth quarter. Swiss Life Asset Management Ltd now owns 13,598 shares of the mining company's stock valued at $128,000 after buying an additional 1,836 shares during the period. Total Investment Management Inc. bought a new position in Endeavour Silver during the fourth quarter worth $285,000. SBI Securities Co. Ltd. lifted its stake in shares of Endeavour Silver by 29.7% in the fourth quarter. SBI Securities Co. Ltd. now owns 29,988 shares of the mining company's stock valued at $282,000 after buying an additional 6,859 shares in the last quarter. Finally, Oppenheimer & Co. Inc. bought a new position in Endeavour Silver during the 4th quarter valued at $253,000. 20.06% of the stock is currently owned by institutional investors and hedge funds.

Endeavour Silver Company Profile

Endeavour Silver Corp. is a Vancouver-based precious metals mining company focused on the acquisition, development and operation of silver and gold properties in Mexico. Publicly listed on the New York Stock Exchange under the ticker EXK, the company has positioned itself as a mid-tier producer with a portfolio of high-grade, operating mines and exploration assets in key mineral belts.

Endeavour Silver's core business activities revolve around four principal underground mines located in the states of Durango, Zacatecas, Guanajuato and Jalisco.

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