Stock Traders Purchase Large Volume of McEwen Call Options (NYSE:MUX)

Key Points

• Investors purchased a significant volume of 4,681 call options for McEwen Inc., marking a 485% increase over the typical trading activity.
• Analysts have a consensus rating of “Buy” on McEwen with a target price of $14.83, while Roth Capital and HC Wainwright maintain buy ratings with targets ranging from $15.00 to $17.00.
• McEwen's stock experienced a price increase, trading at $13.50, and reported a quarterly earnings miss with an EPS of $0.06, below the expected $0.09.

McEwen Inc. (NYSE:MUX - Get Free Report) TSE: MUX was the target of unusually large options trading on Tuesday. Investors purchased 4,681 call options on the stock. Thisrepresentsanincreaseofapproximately485% compared to the average daily volume of 800 call options.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on MUX. HC Wainwright boosted their target price on McEwen from $15.50 to $17.00 and gave the company a "buy" rating in a research note on Tuesday, July 29th. Wall Street Zen lowered McEwen from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. National Bankshares restated an "outperform" rating on shares of McEwen in a research note on Wednesday, July 16th. Finally, Roth Capital set a $15.00 target price on McEwen and gave the company a "buy" rating in a research note on Tuesday, July 1st. One analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $14.83.

McEwen Stock Performance

Shares of NYSE:MUX traded up $0.19 during midday trading on Friday, reaching $13.56. 1,353,217 shares of the company traded hands, compared to its average volume of 1,455,465. The firm has a market capitalization of $733.68 million, a price-to-earnings ratio of -54.24 and a beta of 0.96. The company has a quick ratio of 1.82, a current ratio of 2.35 and a debt-to-equity ratio of 0.26. The firm's fifty day moving average price is $11.05 and its two-hundred day moving average price is $9.00. McEwen has a 12 month low of $6.38 and a 12 month high of $14.29.

McEwen (NYSE:MUX - Get Free Report) TSE: MUX last announced its earnings results on Wednesday, August 6th. The basic materials company reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.03). The business had revenue of $46.70 million during the quarter, compared to the consensus estimate of $49.05 million. McEwen had a negative return on equity of 2.76% and a negative net margin of 8.05%. On average, equities analysts expect that McEwen will post -0.72 earnings per share for the current year.

Insider Transactions at McEwen

In related news, Director Ian J. Ball sold 2,656 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $10.49, for a total transaction of $27,861.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 16.10% of the company's stock.

Hedge Funds Weigh In On McEwen

A number of institutional investors have recently added to or reduced their stakes in MUX. Dimensional Fund Advisors LP boosted its holdings in shares of McEwen by 369.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 556,718 shares of the basic materials company's stock worth $4,331,000 after purchasing an additional 438,088 shares in the last quarter. Aquatic Capital Management LLC boosted its holdings in shares of McEwen by 357.9% in the 4th quarter. Aquatic Capital Management LLC now owns 7,327 shares of the basic materials company's stock worth $57,000 after purchasing an additional 5,727 shares in the last quarter. Northern Trust Corp boosted its holdings in shares of McEwen by 16.4% in the 4th quarter. Northern Trust Corp now owns 161,972 shares of the basic materials company's stock worth $1,260,000 after purchasing an additional 22,854 shares in the last quarter. Algert Global LLC purchased a new position in shares of McEwen in the 4th quarter worth about $294,000. Finally, BNP Paribas Financial Markets purchased a new position in shares of McEwen in the 4th quarter worth about $776,000. 17.03% of the stock is currently owned by institutional investors.

About McEwen

McEwen Mining Inc engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada.