Dimensional Fund Advisors LP Decreases Holdings in First Majestic Silver Corp. $AG

Key Points

• Dimensional Fund Advisors reduced its First Majestic Silver stake by 12.3% in the first quarter, selling 373,279 shares and retaining 2.66 million shares worth approximately $57 million. Institutional investors collectively own 27.16% of the company.
• First Majestic’s latest quarter showed strong year-over-year revenue growth of 57.3%, but EPS and revenue missed analyst estimates at $0.21 and $415.5 million, respectively. Labor disruptions, higher costs and inventory accumulation also pose execution risks.
• The stock opened at $15.02, down 4.3%, while analysts maintained a generally favorable outlook with a “Moderate Buy” consensus and an average price target of $23.83. The company declared a quarterly dividend of $0.0152 per share, yielding about 0.4% annually.

Dimensional Fund Advisors LP reduced its stake in First Majestic Silver Corp. (NYSE:AG - Free Report) TSE: FR by 12.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,655,208 shares of the mining company's stock after selling 373,279 shares during the period. Dimensional Fund Advisors LP owned approximately 0.54% of First Majestic Silver worth $56,977,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. EFG International AG purchased a new stake in shares of First Majestic Silver during the 4th quarter valued at about $25,000. Harbor Investment Advisory LLC purchased a new stake in shares of First Majestic Silver during the first quarter valued at approximately $32,000. Spire Wealth Management acquired a new position in shares of First Majestic Silver during the fourth quarter worth $35,000. Trust Co. of Vermont purchased a new position in shares of First Majestic Silver in the fourth quarter valued at $43,000. Finally, Parallel Advisors LLC grew its holdings in First Majestic Silver by 36.4% during the 1st quarter. Parallel Advisors LLC now owns 2,100 shares of the mining company's stock valued at $45,000 after purchasing an additional 560 shares in the last quarter. 27.16% of the stock is owned by hedge funds and other institutional investors.

First Majestic Silver Stock Down 4.3%

Shares of First Majestic Silver stock opened at $15.02 on Friday. The company has a current ratio of 2.73, a quick ratio of 2.54 and a debt-to-equity ratio of 0.08. The business's 50 day simple moving average is $17.45 and its 200-day simple moving average is $20.77. The stock has a market capitalization of $7.41 billion, a price-to-earnings ratio of 21.16 and a beta of 0.91. First Majestic Silver Corp. has a twelve month low of $7.74 and a twelve month high of $32.03.

First Majestic Silver (NYSE:AG - Get Free Report) TSE: FR last announced its quarterly earnings results on Thursday, July 30th. The mining company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04). First Majestic Silver had a return on equity of 13.58% and a net margin of 21.18%.The company had revenue of $415.50 million during the quarter, compared to the consensus estimate of $496.00 million. During the same period last year, the business posted $0.11 EPS. The company's revenue for the quarter was up 57.3% on a year-over-year basis. Equities research analysts forecast that First Majestic Silver Corp. will post 0.8 earnings per share for the current year.

First Majestic Silver Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, August 14th will be paid a $0.0152 dividend. This represents a $0.06 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Friday, August 14th. First Majestic Silver's dividend payout ratio (DPR) is presently 9.86%.

First Majestic Silver News Roundup

Here are the key news stories impacting First Majestic Silver this week:

• Positive Sentiment: HC Wainwright raised its price target to $27 from $26 and reiterated a “buy” rating, implying substantial upside from recent levels. HC Wainwright price target increase
• Positive Sentiment: Analyst sentiment remains favorable, with the average price target reported at $23.50 and Seeking Alpha upgrading the stock to Buy, citing a discount to estimated intrinsic value and potential for a silver-price re-rating. Analyst average price target
• Positive Sentiment: Second-quarter free cash flow reached $194.6 million, while EBITDA rose 110% to $252 million. The company also reported a $1.09 billion cash position in one analysis, or approximately $1.3 billion including its broader treasury, strengthening its ability to fund reinvestment, acquisitions and other growth initiatives. First Majestic second-quarter free cash flow
• Neutral Sentiment: First Majestic declared a quarterly dividend of $0.0152 per share, payable August 31 to shareholders of record August 14. The payout provides income support, although its annualized yield is modest at about 0.4%.
• Negative Sentiment: Reported second-quarter EPS of $0.21 missed the $0.25 consensus estimate, while revenue of $415.5 million came in below the $496 million forecast. Although revenue increased 57.3% year over year, the shortfall may be driving near-term selling pressure. First Majestic earnings report
• Negative Sentiment: The earnings call highlighted labor disruptions, higher costs and inventory accumulation caused by silver-price volatility, creating execution and margin risks despite record revenue and strong profitability.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on AG. HC Wainwright boosted their price objective on shares of First Majestic Silver from $26.00 to $27.00 and gave the stock a "buy" rating in a report on Friday. Wall Street Zen cut First Majestic Silver from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Weiss Ratings lowered First Majestic Silver from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, June 5th. Scotiabank cut their target price on First Majestic Silver from $23.00 to $22.50 and set a "sector perform" rating on the stock in a research report on Tuesday, July 14th. Finally, ATB Cormark Capital Markets upgraded First Majestic Silver from a "hold" rating to a "moderate buy" rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $23.83.

First Majestic Silver Company Profile

First Majestic Silver Corp. NYSE: AG engages in the production of silver from its wholly owned operations in Mexico. Headquartered in Vancouver, British Columbia, the company focuses on acquiring, developing and operating high-grade silver projects. Established in 2002, First Majestic has built a multi-mine portfolio to supply silver primarily for the global industrial and investment markets while generating by-products such as gold, lead and zinc concentrates.

First Majestic’s principal operations are located in the historic Mexican Silver Belt, with producing mines including La Encantada in Coahuila, Santa Elena in Sonora and La Parrilla in Durango.

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