Investors Buy Large Volume of Call Options on Alamos Gold (NYSE:AGI)

Key Points

• Unusual options activity: Investors purchased 10,639 Alamos Gold call options, nearly three times the average daily volume of 3,566 contracts.
• Institutional support remains strong: Several major investors increased their holdings, and institutional investors collectively own 64.33% of the company’s stock.
• Analyst outlook is moderately bullish: Alamos Gold has a consensus “Moderate Buy” rating and an average price target of $47.50, despite some recent rating downgrades. The company also reported quarterly EPS of $0.59, beating estimates, while revenue rose 35.6% year over year.

Alamos Gold Inc. (NYSE:AGI - Get Free Report) TSE: AGI was the target of some unusual options trading on Tuesday. Stock traders purchased 10,639 call options on the company. This represents an increase of approximately 198% compared to the average daily volume of 3,566 call options.

Institutional Investors Weigh In On Alamos Gold

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Swiss National Bank boosted its position in shares of Alamos Gold by 26.8% during the 1st quarter. Swiss National Bank now owns 1,413,236 shares of the basic materials company's stock valued at $62,782,000 after purchasing an additional 298,900 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in Alamos Gold by 9.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,679,980 shares of the basic materials company's stock valued at $74,757,000 after purchasing an additional 141,000 shares during the last quarter. DJE Kapital AG boosted its holdings in Alamos Gold by 66.2% during the first quarter. DJE Kapital AG now owns 296,236 shares of the basic materials company's stock worth $12,665,000 after buying an additional 118,006 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Alamos Gold by 41.6% during the first quarter. The Manufacturers Life Insurance Company now owns 4,139,080 shares of the basic materials company's stock worth $183,963,000 after buying an additional 1,216,977 shares in the last quarter. Finally, Encompass Capital Advisors LLC acquired a new position in Alamos Gold in the first quarter worth approximately $13,332,000. Institutional investors own 64.33% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have issued reports on AGI. Wall Street Zen cut Alamos Gold from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Jefferies Financial Group cut their price objective on shares of Alamos Gold from $50.00 to $49.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Weiss Ratings lowered shares of Alamos Gold from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, July 23rd. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of Alamos Gold in a research note on Saturday, June 20th. Finally, Scotiabank reaffirmed an "outperform" rating on shares of Alamos Gold in a report on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $47.50.

Alamos Gold Stock Performance

Shares of NYSE AGI traded down $0.15 during midday trading on Tuesday, reaching $36.82. 487,449 shares of the company traded hands, compared to its average volume of 4,115,208. Alamos Gold has a 52 week low of $27.05 and a 52 week high of $55.41. The stock has a 50-day moving average price of $32.29 and a 200 day moving average price of $39.00. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.07 and a quick ratio of 1.67. The company has a market cap of $15.41 billion, a price-to-earnings ratio of 13.25, a PEG ratio of 0.50 and a beta of 0.61.

Alamos Gold (NYSE:AGI - Get Free Report) TSE: AGI last announced its earnings results on Wednesday, July 29th. The basic materials company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.07. The firm had revenue of $594.10 million during the quarter, compared to analyst estimates of $593.58 million. Alamos Gold had a net margin of 52.64% and a return on equity of 19.28%. Alamos Gold's revenue was up 35.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.34 EPS. Sell-side analysts anticipate that Alamos Gold will post 2.12 earnings per share for the current fiscal year.

Alamos Gold Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 10th will be issued a $0.04 dividend. The ex-dividend date is Thursday, September 10th. This represents a $0.16 annualized dividend and a dividend yield of 0.4%. Alamos Gold's dividend payout ratio (DPR) is 5.78%.

About Alamos Gold

Alamos Gold Inc is a Canadian-based intermediate gold producer engaged in the exploration, development and operation of mining projects in North America. Its principal activities include the acquisition, exploration and development of gold-bearing properties, and the management of operating mines. The company focuses on sustainable production practices and maintains a portfolio that spans both producing assets and advanced-stage development projects.

Alamos Gold operates multiple open pit and underground mines, including the Young-Davidson and Island Gold mines in Ontario, Canada, and the Mulatos mine in Sonora, Mexico.

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