Fortuna Mining (NYSE:FSM) Trading Down 8.6% - Should You Sell?

Key Points

• Fortuna Mining shares fell about 8.6% intraday to $8.815 (low $8.62) from a prior close of $9.64, on roughly 4.22M shares traded—about 47% below its average daily volume.
• Analysts are broadly positive with a consensus Buy rating and an average price target of $11; several firms recently upgraded the stock, including Scotiabank (to $14) and Zacks (to strong-buy).
• Fundamentals show a $2.7B market cap, P/E of 9.85 and low leverage (debt/equity 0.11; current ratio ~2.98), though the latest quarter missed EPS by $0.01 ($0.22 vs. $0.23); major institutions like RBC, Goldman and UBS have recently increased stakes.

Fortuna Mining Corp. (NYSE:FSM - Get Free Report) TSE: FVI was down 8.6% during trading on Thursday . The company traded as low as $8.62 and last traded at $8.8150. Approximately 4,220,465 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 7,932,543 shares. The stock had previously closed at $9.64.

Analyst Ratings Changes

A number of equities research analysts have issued reports on FSM shares. Scotiabank increased their price objective on shares of Fortuna Mining from $11.00 to $14.00 and gave the stock an "outperform" rating in a research note on Monday, January 26th. Zacks Research upgraded shares of Fortuna Mining from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. Wall Street Zen upgraded shares of Fortuna Mining from a "hold" rating to a "buy" rating in a research report on Saturday, March 14th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Fortuna Mining in a report on Monday, December 29th. Finally, National Bank Financial upgraded Fortuna Mining from a "sector perform" rating to an "outperform" rating in a research note on Monday, November 24th. One equities research analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $11.00.

Fortuna Mining Stock Down 8.1%

The firm has a 50-day simple moving average of $11.19 and a 200 day simple moving average of $9.68. The stock has a market capitalization of $2.70 billion, a P/E ratio of 9.85 and a beta of 0.82. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.98 and a quick ratio of 2.50.

Fortuna Mining (NYSE:FSM - Get Free Report) TSE: FVI last released its quarterly earnings results on Wednesday, February 18th. The basic materials company reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.01). The firm had revenue of $270.20 million for the quarter. Fortuna Mining had a return on equity of 14.02% and a net margin of 27.59%. On average, equities research analysts forecast that Fortuna Mining Corp. will post 0.51 EPS for the current year.

Hedge Funds Weigh In On Fortuna Mining

Several large investors have recently modified their holdings of the business. Royal Bank of Canada grew its stake in shares of Fortuna Mining by 98.8% in the first quarter. Royal Bank of Canada now owns 1,159,522 shares of the basic materials company's stock worth $7,074,000 after purchasing an additional 576,264 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Fortuna Mining by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 8,368,272 shares of the basic materials company's stock valued at $51,046,000 after buying an additional 1,368,600 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Fortuna Mining by 189.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 840,496 shares of the basic materials company's stock valued at $5,127,000 after buying an additional 549,665 shares during the period. Savant Capital LLC bought a new position in shares of Fortuna Mining during the second quarter worth about $298,000. Finally, Vise Technologies Inc. bought a new position in shares of Fortuna Mining during the second quarter worth about $78,000. Institutional investors own 33.80% of the company's stock.

Fortuna Mining Company Profile

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d'Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d'Ivoire. The company was formerly known as Fortuna Silver Mines Inc and changed its name to Fortuna Mining Corp.

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