Fresnillo (OTCMKTS:FNLPF) Trading Up 11.8% - Still a Buy?

Key Points

• Shares jumped 11.8% to $48.09 on Wednesday, but the rally occurred on thin volume (~2,982 shares, down about 83% vs. average), suggesting the move was driven by low liquidity.
• Analyst sentiment is mixed-to-negative with an average rating of Reduce (1 Buy, 6 Hold, 2 Sell); recent notes include downgrades from Zacks and Berenberg and an "underweight" from Morgan Stanley despite a Citigroup buy.
• Fresnillo, a leading primary silver producer, shows conservative fundamentals (debt/equity 0.17, current ratio 4.35, quick ratio 3.88) and is trading around its 50‑day ($47.40) and above its 200‑day ($43.54) moving averages.

Fresnillo PLC (OTCMKTS:FNLPF - Get Free Report) was up 11.8% during trading on Wednesday . The stock traded as high as $48.09 and last traded at $48.09. Approximately 2,982 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 17,504 shares. The stock had previously closed at $43.00.

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Analysts Set New Price Targets

Several research analysts recently commented on FNLPF shares. Morgan Stanley restated an "underweight" rating on shares of Fresnillo in a report on Monday, January 12th. Zacks Research lowered shares of Fresnillo from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Berenberg Bank lowered shares of Fresnillo from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 5th. Finally, Citigroup restated a "buy" rating on shares of Fresnillo in a report on Monday, April 13th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Fresnillo has an average rating of "Reduce".

Fresnillo Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 4.35 and a quick ratio of 3.88. The company's 50-day simple moving average is $47.40 and its 200-day simple moving average is $43.54.

Fresnillo Company Profile

Fresnillo plc is a precious metals mining company focused on the production, exploration and development of silver and gold. The company is widely recognized as a leading primary silver producer and a significant gold producer, operating in the mining sector with activities that span underground and open-pit mining, mineral processing and concentrator operations. Fresnillo's business centers on bringing mined ore through processing to produce saleable precious metal products for industrial and investment markets.

Operationally, the company manages a portfolio of producing mines and development projects, with exploration programs intended to extend mine life and expand resource bases.

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