Investors Buy Large Volume of Call Options on Pan American Silver (NYSE:PAAS)

Key Points

• Pan American Silver Corp. experienced a 37% increase in call options trading, with 18,023 options purchased on Tuesday, reflecting heightened investor interest.
• The company recently reported a Q2 earnings per share of $0.43, exceeding analysts' expectations, and its quarterly revenue increased by 18.3% year-over-year.
• Pan American Silver announced a dividend increase from $0.10 to $0.12 per share, indicating a positive outlook for its financial stability and returning value to shareholders.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS was the target of unusually large options trading activity on Tuesday. Stock traders bought 18,023 call options on the company. This represents an increase of 37% compared to the typical daily volume of 13,197 call options.

Pan American Silver Price Performance

Shares of Pan American Silver stock traded down $4.13 during mid-day trading on Tuesday, reaching $35.25. 4,645,321 shares of the stock were exchanged, compared to its average volume of 5,020,758. The company has a market cap of $14.87 billion, a price-to-earnings ratio of 24.29, a price-to-earnings-growth ratio of 0.48 and a beta of 0.63. The company has a current ratio of 3.05, a quick ratio of 2.11 and a debt-to-equity ratio of 0.15. The firm has a 50-day simple moving average of $36.04 and a 200 day simple moving average of $30.14. Pan American Silver has a fifty-two week low of $19.80 and a fifty-two week high of $42.57.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last announced its earnings results on Wednesday, August 6th. The basic materials company reported $0.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.03. The business had revenue of $811.90 million during the quarter, compared to analysts' expectations of $782.12 million. Pan American Silver had a net margin of 16.80% and a return on equity of 11.49%. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter last year, the company posted $0.11 EPS. On average, sell-side analysts predict that Pan American Silver will post 1.26 EPS for the current fiscal year.

Pan American Silver Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, August 18th were issued a dividend of $0.12 per share. This is an increase from Pan American Silver's previous quarterly dividend of $0.10. This represents a $0.48 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Monday, August 18th. Pan American Silver's dividend payout ratio is presently 33.10%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on PAAS shares. CIBC boosted their price target on shares of Pan American Silver from $50.00 to $62.00 and gave the company an "outperformer" rating in a report on Friday, October 10th. National Bank Financial upgraded shares of Pan American Silver to a "strong-buy" rating in a report on Thursday, September 4th. Wall Street Zen downgraded shares of Pan American Silver from a "strong-buy" rating to a "buy" rating in a research report on Saturday. National Bankshares reissued an "outperform" rating on shares of Pan American Silver in a research report on Friday, September 5th. Finally, Zacks Research cut shares of Pan American Silver from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 19th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Pan American Silver has a consensus rating of "Moderate Buy" and an average price target of $38.50.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of PAAS. Graybill Wealth Management LTD. acquired a new position in Pan American Silver during the first quarter valued at approximately $33,000. City State Bank grew its holdings in Pan American Silver by 74.4% during the third quarter. City State Bank now owns 1,020 shares of the basic materials company's stock valued at $40,000 after purchasing an additional 435 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in Pan American Silver by 53.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,703 shares of the basic materials company's stock valued at $48,000 after purchasing an additional 594 shares during the period. Mark Sheptoff Financial Planning LLC acquired a new position in Pan American Silver during the second quarter valued at approximately $51,000. Finally, Kiker Wealth Management LLC grew its holdings in Pan American Silver by 42.4% during the second quarter. Kiker Wealth Management LLC now owns 2,014 shares of the basic materials company's stock valued at $57,000 after purchasing an additional 600 shares during the period. Institutional investors and hedge funds own 55.43% of the company's stock.

About Pan American Silver

Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp.

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