Investors Purchase High Volume of Fortuna Mining Call Options (NYSE:FSM)

Key Points

• Fortuna Mining saw unusually heavy call-option activity: Investors purchased 7,629 call options, 496% above the typical daily volume of 1,279.
• Shares fell 1.0% to $9.47, while the company’s latest quarterly results missed expectations on both EPS and revenue.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and a $14.00 price target; institutional investors own 33.8% of the stock.

Fortuna Mining Corp. (NYSE:FSM - Get Free Report) TSE: FVI saw unusually large options trading activity on Wednesday. Stock investors bought 7,629 call options on the stock. This represents an increase of 496% compared to the typical daily volume of 1,279 call options.

Fortuna Mining Trading Down 1.0%

NYSE:FSM traded down $0.09 on Wednesday, reaching $9.47. The stock had a trading volume of 2,699,014 shares, compared to its average volume of 6,247,584. Fortuna Mining has a 12-month low of $7.72 and a 12-month high of $13.85. The company has a market cap of $2.80 billion, a price-to-earnings ratio of 8.00 and a beta of 1.05. The firm's fifty day moving average is $11.34 and its two-hundred day moving average is $10.34. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.00 and a quick ratio of 2.50.

Fortuna Mining (NYSE:FSM - Get Free Report) TSE: FVI last announced its quarterly earnings data on Wednesday, August 5th. The basic materials company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.05). Fortuna Mining had a net margin of 31.99% and a return on equity of 17.48%. The firm had revenue of $318.41 million for the quarter, compared to analysts' expectations of $325.00 million. Equities analysts expect that Fortuna Mining will post 1.06 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on FSM shares. Weiss Ratings cut Fortuna Mining from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday. Zacks Research raised Fortuna Mining from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Wall Street Zen cut Fortuna Mining from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 12th. Finally, Scotiabank reiterated an "outperform" rating on shares of Fortuna Mining in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $14.00.

Hedge Funds Weigh In On Fortuna Mining

Hedge funds and other institutional investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio acquired a new stake in Fortuna Mining in the 2nd quarter valued at $7,076,000. Dimensional Fund Advisors LP lifted its stake in shares of Fortuna Mining by 5.6% during the first quarter. Dimensional Fund Advisors LP now owns 10,634,157 shares of the basic materials company's stock worth $105,576,000 after purchasing an additional 567,558 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Fortuna Mining in the first quarter worth about $3,607,000. Royal Bank of Canada boosted its position in shares of Fortuna Mining by 33.1% in the first quarter. Royal Bank of Canada now owns 1,394,600 shares of the basic materials company's stock worth $13,849,000 after buying an additional 346,716 shares during the period. Finally, Groupe la Francaise grew its stake in shares of Fortuna Mining by 47.2% in the first quarter. Groupe la Francaise now owns 1,023,380 shares of the basic materials company's stock valued at $10,141,000 after buying an additional 328,380 shares in the last quarter. 33.80% of the stock is owned by institutional investors and hedge funds.

Fortuna Mining Company Profile

Fortuna Mining Corp. is a precious metals mining company that explores, develops and operates mines producing gold and silver. The company's portfolio also includes polymetallic production, including lead and zinc concentrates from its Caylloma operation in Peru. Fortuna sells its metal production to international smelters and refiners.

Fortuna's operating portfolio includes the Lindero gold mine in Salta, Argentina; the Séguéla gold mine in Côte d'Ivoire; the Yaramoko gold mine in Burkina Faso; and the Caylloma silver-polymetallic mine in Peru.

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