Pan American Silver (NYSE:PAAS) Sets New 1-Year High on Strong Earnings

Key Points

• Pan American Silver Corp. achieved a new 52-week high of $31.47 after reporting an earnings per share (EPS) of $0.43, exceeding the consensus estimate by $0.03.
• The company's revenue for the quarter reached $811.90 million, surpassing analyst expectations and showing an 18.3% increase year-over-year.
• Analysts have mixed ratings on PAAS, with four holding, three buying, and one strong buy rating, resulting in an average rating of "Moderate Buy" and a consensus target price of $31.40.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS shares reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $31.47 and last traded at $30.90, with a volume of 2606123 shares. The stock had previously closed at $29.35.

The basic materials company reported $0.43 EPS for the quarter, beating analysts' consensus estimates of $0.40 by $0.03. Pan American Silver had a return on equity of 11.49% and a net margin of 16.80%. The firm had revenue of $811.90 million for the quarter, compared to analyst estimates of $782.12 million. During the same period last year, the firm posted $0.11 earnings per share. The business's revenue for the quarter was up 18.3% on a year-over-year basis.

Pan American Silver Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, August 18th will be given a $0.12 dividend. This is an increase from Pan American Silver's previous quarterly dividend of $0.10. The ex-dividend date is Monday, August 18th. This represents a $0.48 annualized dividend and a yield of 1.5%. Pan American Silver's dividend payout ratio is currently 45.98%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on PAAS. Scotiabank reaffirmed a "sector perform" rating on shares of Pan American Silver in a research note on Monday, April 14th. BMO Capital Markets began coverage on Pan American Silver in a report on Wednesday, April 16th. They issued a "market perform" rating for the company. Wall Street Zen raised Pan American Silver from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 15th. TD Securities reduced their price target on Pan American Silver from $30.00 to $26.00 and set a "hold" rating on the stock in a research report on Thursday, May 22nd. Finally, CIBC restated an "outperform" rating on shares of Pan American Silver in a research report on Tuesday, July 15th. Four equities research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $31.40.

Institutional Trading of Pan American Silver

A number of large investors have recently bought and sold shares of PAAS. Graybill Wealth Management LTD. bought a new stake in shares of Pan American Silver during the 1st quarter valued at about $33,000. Mark Sheptoff Financial Planning LLC acquired a new position in Pan American Silver in the second quarter valued at approximately $51,000. Kiker Wealth Management LLC lifted its stake in Pan American Silver by 42.4% in the second quarter. Kiker Wealth Management LLC now owns 2,014 shares of the basic materials company's stock valued at $57,000 after buying an additional 600 shares during the period. CWM LLC boosted its holdings in shares of Pan American Silver by 32.1% during the 2nd quarter. CWM LLC now owns 2,264 shares of the basic materials company's stock worth $64,000 after buying an additional 550 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its position in shares of Pan American Silver by 39.8% during the 1st quarter. Farther Finance Advisors LLC now owns 2,720 shares of the basic materials company's stock worth $70,000 after buying an additional 775 shares during the period. 55.43% of the stock is currently owned by institutional investors and hedge funds.

Pan American Silver Stock Up 1.6%

The firm's 50 day moving average price is $28.79 and its two-hundred day moving average price is $26.06. The company has a market cap of $11.56 billion, a P/E ratio of 22.03, a price-to-earnings-growth ratio of 0.42 and a beta of 0.60. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.94 and a current ratio of 3.05.

Pan American Silver Company Profile

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.