Equinox Gold (NYSEAMERICAN:EQX) Shares Gap Down - Should You Sell?

Key Points

• Equinox Gold's stock gapped down from $12.21 to $11.07 before trading, closing at $11.05 with significant volume of 3,462,207 shares.
• Brokerages have mixed ratings on EQX, with a consensus rating of "Moderate Buy" and a target price of $26.00, despite Zacks Research recently downgrading the stock to "strong sell."
• Institutional investors have markedly increased their stakes in Equinox Gold, with notable increases from L1 Capital Pty Ltd and Franklin Resources Inc., signaling strong investor interest.

Equinox Gold Corp. (NYSEAMERICAN:EQX - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $12.21, but opened at $11.07. Equinox Gold shares last traded at $11.05, with a volume of 3,462,207 shares.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on EQX. Cormark raised shares of Equinox Gold from a "hold" rating to a "moderate buy" rating in a report on Friday, August 15th. Zacks Research downgraded shares of Equinox Gold from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 15th. National Bankshares restated an "outperform" rating on shares of Equinox Gold in a research report on Friday, August 15th. TD Securities reiterated a "buy" rating on shares of Equinox Gold in a research report on Friday, September 5th. Finally, CIBC reiterated a "neutral" rating on shares of Equinox Gold in a research report on Tuesday, July 15th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $26.00.

Equinox Gold Stock Down 9.4%

The company has a current ratio of 0.94, a quick ratio of 0.53 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $8.66 billion, a price-to-earnings ratio of -184.47 and a beta of 1.14. The firm's 50 day simple moving average is $10.02 and its 200-day simple moving average is $7.67.

Equinox Gold (NYSEAMERICAN:EQX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 13th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.09. Equinox Gold had a negative net margin of 1.21% and a positive return on equity of 3.54%. The company had revenue of $478.64 million for the quarter, compared to analysts' expectations of $470.00 million. During the same period in the previous year, the company posted ($0.01) EPS. Equinox Gold's revenue was up 77.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Equinox Gold Corp. will post 0.85 EPS for the current fiscal year.

Institutional Investors Weigh In On Equinox Gold

A number of hedge funds have recently added to or reduced their stakes in EQX. L1 Capital Pty Ltd increased its holdings in shares of Equinox Gold by 120.4% during the second quarter. L1 Capital Pty Ltd now owns 23,908,865 shares of the company's stock valued at $137,476,000 after purchasing an additional 13,060,846 shares during the period. Franklin Resources Inc. raised its stake in shares of Equinox Gold by 44,440.1% in the 2nd quarter. Franklin Resources Inc. now owns 10,364,487 shares of the company's stock valued at $59,850,000 after acquiring an additional 10,341,217 shares in the last quarter. Maple Rock Capital Partners Inc. increased its position in Equinox Gold by 102.1% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 14,308,748 shares of the company's stock worth $82,398,000 after buying an additional 7,229,260 shares during the period. Ruffer LLP increased its position in shares of Equinox Gold by 322.1% during the second quarter. Ruffer LLP now owns 7,499,601 shares of the company's stock valued at $43,267,000 after purchasing an additional 5,722,871 shares during the period. Finally, Helikon Investments Ltd increased its position in shares of Equinox Gold by 229.3% during the first quarter. Helikon Investments Ltd now owns 5,614,735 shares of the company's stock valued at $38,629,000 after purchasing an additional 3,909,705 shares during the period. 38.85% of the stock is currently owned by institutional investors.

About Equinox Gold

Equinox Gold Corp. engages in the exploration, acquisition, development, and operation of mineral properties in the Americas. It explores gold and silver deposits. It holds interest in properties in California located in the United States; Guerrero State located in Mexico; Maranhão, Bahia, and Mina Gerais state located in Brazil; and Ontario, Canada.

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