First Majestic Silver (NYSE:AG) Shares Gap Down - Here's Why

Key Points

• First Majestic Silver shares gapped down prior to trading, opening at $11.82 after a previous close of $12.41.
• Recent earnings results revealed a missed EPS estimate of $0.04, compared to the expected $0.06, although revenue rose by 94% year-over-year.
• Several analysts have upgraded their ratings, with a consensus rating of “Hold” and a target price of $9.63.

First Majestic Silver Corp. (NYSE:AG - Get Free Report) TSE: FR shares gapped down prior to trading on Tuesday . The stock had previously closed at $12.41, but opened at $11.82. First Majestic Silver shares last traded at $12.54, with a volume of 6,770,685 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on AG. Scotiabank boosted their price target on First Majestic Silver from $6.00 to $6.50 and gave the company a "sector perform" rating in a research note on Wednesday, July 9th. National Bank Financial raised First Majestic Silver to a "hold" rating in a research report on Thursday, June 12th. Finally, HC Wainwright reaffirmed a "buy" rating and set a $12.75 target price on shares of First Majestic Silver in a research report on Friday, August 15th. One investment analyst has rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $9.63.

First Majestic Silver Price Performance

The firm has a market capitalization of $6.01 billion, a PE ratio of -1,227.27 and a beta of 0.78. The business has a 50-day moving average of $9.39 and a 200 day moving average of $7.86. The company has a current ratio of 3.27, a quick ratio of 2.84 and a debt-to-equity ratio of 0.08.

First Majestic Silver (NYSE:AG - Get Free Report) TSE: FR last announced its earnings results on Thursday, August 14th. The mining company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.02). The business had revenue of $264.20 million for the quarter, compared to analysts' expectations of $387.25 million. First Majestic Silver had a net margin of 1.78% and a return on equity of 1.72%. The company's revenue for the quarter was up 94.0% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.07) earnings per share. As a group, research analysts anticipate that First Majestic Silver Corp. will post 0.54 EPS for the current fiscal year.

First Majestic Silver Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Friday, August 29th were paid a dividend of $0.0048 per share. The ex-dividend date was Friday, August 29th. This represents a $0.02 annualized dividend and a dividend yield of 0.2%. First Majestic Silver's dividend payout ratio is presently -100.00%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Dynamic Technology Lab Private Ltd boosted its stake in First Majestic Silver by 66.4% in the 1st quarter. Dynamic Technology Lab Private Ltd now owns 100,855 shares of the mining company's stock worth $675,000 after purchasing an additional 40,228 shares during the period. Bayforest Capital Ltd raised its holdings in shares of First Majestic Silver by 1,978.6% during the 1st quarter. Bayforest Capital Ltd now owns 213,843 shares of the mining company's stock valued at $1,431,000 after buying an additional 203,555 shares in the last quarter. Alps Advisors Inc. purchased a new position in shares of First Majestic Silver during the 1st quarter valued at about $1,935,000. Marotta Asset Management purchased a new position in shares of First Majestic Silver during the 2nd quarter valued at about $633,000. Finally, Oppenheimer & Co. Inc. purchased a new position in shares of First Majestic Silver during the 1st quarter valued at about $79,000. Institutional investors own 27.16% of the company's stock.

About First Majestic Silver

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. Its projects include the San Dimas mine covering an area of approximately 71,867 hectares located in Durango State, Mexico; the Santa Elena that covers an area of approximately 102,244 hectares located in Sonora State, México; and the La Encantada covering an area of approximately 4,076 hectares located in Coahuila State, México.

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