Investors Purchase Large Volume of Call Options on McEwen (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. Stock traders acquired 4,681 call options on the stock. Thisisanincreaseof485% compared to the average daily volume of 800 call options.

Insiders Place Their Bets

In related news, Director Ian J. Ball sold 2,656 shares of McEwen stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $10.49, for a total transaction of $27,861.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 16.10% of the company's stock.

Institutional Investors Weigh In On McEwen

A number of hedge funds and other institutional investors have recently bought and sold shares of MUX. Nomura Holdings Inc. bought a new stake in McEwen during the 1st quarter worth $6,925,000. Tidal Investments LLC grew its position in McEwen by 556.7% during the 4th quarter. Tidal Investments LLC now owns 1,003,830 shares of the basic materials company's stock worth $7,810,000 after acquiring an additional 850,971 shares during the last quarter. Royal Bank of Canada grew its position in McEwen by 4,309.4% during the 1st quarter. Royal Bank of Canada now owns 638,871 shares of the basic materials company's stock worth $4,823,000 after acquiring an additional 624,382 shares during the last quarter. Dimensional Fund Advisors LP grew its position in McEwen by 369.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 556,718 shares of the basic materials company's stock worth $4,331,000 after acquiring an additional 438,088 shares during the last quarter. Finally, Monashee Investment Management LLC bought a new stake in McEwen during the 1st quarter worth $2,076,000. Institutional investors own 17.03% of the company's stock.

Analysts Set New Price Targets

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

McEwen Price Performance

Shares of McEwen stock traded up $0.19 during trading on Friday, reaching $13.56. 1,353,217 shares of the company's stock were exchanged, compared to its average volume of 1,455,465. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.82 and a current ratio of 2.35. McEwen has a 1-year low of $6.38 and a 1-year high of $14.29. The company has a market cap of $733.62 million, a P/E ratio of -54.24 and a beta of 0.96. The firm's 50-day moving average price is $11.05 and its 200 day moving average price is $8.99.

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

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.