Fresnillo (LON:FRES) Trading Down 12.2% - Here's What Happened

Key Points

• Fresnillo plc shares dropped 12.2% on Tuesday, trading as low as GBX 2,000 ($26.74) and closing at GBX 2,114 ($28.27), with a decline in trading volume by 14% compared to average levels.
• Despite the recent decline, a number of brokerages have raised their target prices for Fresnillo, with Citigroup and Berenberg Bank projecting targets of GBX 1,700 and GBX 2,600 respectively, and a general consensus rating of "Moderate Buy" among analysts.
• Fresnillo is the world's largest silver producer and Mexico's largest gold producer, focusing on developing low-cost, high-potential mining projects to sustain growth and enhance value for stakeholders.

Fresnillo plc (LON:FRES - Get Free Report) fell 12.2% on Tuesday . The company traded as low as GBX 2,000 ($26.74) and last traded at GBX 2,114 ($28.27). 2,780,052 shares were traded during trading, a decline of 14% from the average session volume of 3,248,329 shares. The stock had previously closed at GBX 2,408 ($32.20).

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on FRES. Royal Bank Of Canada raised their target price on shares of Fresnillo from GBX 1,200 to GBX 1,400 and gave the company a "sector perform" rating in a research note on Monday, August 11th. Citigroup raised their target price on shares of Fresnillo from GBX 1,300 to GBX 1,700 and gave the company a "buy" rating in a research note on Thursday, July 10th. JPMorgan Chase & Co. raised their price target on shares of Fresnillo from GBX 1,850 to GBX 2,100 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Berenberg Bank raised their price target on shares of Fresnillo from GBX 1,700 to GBX 2,600 and gave the company a "buy" rating in a research report on Tuesday, October 7th. Finally, Canaccord Genuity Group raised their price target on shares of Fresnillo from GBX 980 to GBX 2,440 and gave the company a "hold" rating in a research report on Friday. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of GBX 2,048.

Fresnillo Stock Down 12.2%

The company has a market cap of £15.58 billion, a P/E ratio of 34.21, a P/E/G ratio of -1.58 and a beta of 0.15. The company has a debt-to-equity ratio of 23.55, a current ratio of 5.88 and a quick ratio of 3.28. The company's 50-day moving average is GBX 2,117.10 and its two-hundred day moving average is GBX 1,555.48.

Fresnillo Company Profile

Fresnillo plc is the world's largest silver producer and Mexico's largest gold producer, listed on the London and Mexican stock exchanges. The Group seeks to create value for stakeholders across precious metal cycles, focusing on high-potential silver and gold projects that can be developed into low cost, world-class mines. Following a decade of consistent and successful progress, the Group is now focused on consolidating its growth and advancing its pipeline in order to deliver further growth in the years ahead.

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