Pan American Silver (NYSE:PAAS) Hits New 12-Month High - Should You Buy?

Key Points

• Pan American Silver recently achieved a new 52-week high, trading at $34.91 with a last price of $33.86 amid significant trading volume.
• Brokerages have issued mixed ratings on the stock, with some downgrading it to "hold" while others maintain a "buy" recommendation, leading to an average rating of "hold" with a consensus target price of $31.40.
• The company reported better-than-expected quarterly earnings of $0.43 EPS, surpassing analyst expectations, and announced a dividend increase to $0.12 per share, reflecting positive financial performance.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS's share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $34.91 and last traded at $33.86, with a volume of 483047 shares changing hands. The stock had previously closed at $33.92.

Analyst Ratings Changes

A number of equities analysts have recently commented on PAAS shares. Wall Street Zen lowered shares of Pan American Silver from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 16th. CIBC reissued an "outperform" rating on shares of Pan American Silver in a research report on Tuesday, July 15th. TD Securities decreased their price target on Pan American Silver from $30.00 to $26.00 and set a "hold" rating for the company in a research note on Thursday, May 22nd. Finally, Zacks Research cut Pan American Silver from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 19th. Three analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $31.40.

Pan American Silver Trading Down 1.2%

The stock has a market capitalization of $12.16 billion, a price-to-earnings ratio of 23.18, a PEG ratio of 0.43 and a beta of 0.65. The company has a quick ratio of 2.11, a current ratio of 3.05 and a debt-to-equity ratio of 0.15. The company's 50-day moving average is $30.34 and its 200-day moving average is $27.21.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last announced its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.40 by $0.03. The business had revenue of $811.90 million for the quarter, compared to analyst estimates of $782.12 million. Pan American Silver had a return on equity of 11.49% and a net margin of 16.80%.The company's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 EPS. Research analysts anticipate that Pan American Silver Corp. will post 1.26 earnings per share for the current fiscal year.

Pan American Silver Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, August 18th were paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Monday, August 18th. This is an increase from Pan American Silver's previous quarterly dividend of $0.10. Pan American Silver's payout ratio is currently 33.10%.

Institutional Investors Weigh In On Pan American Silver

A number of large investors have recently modified their holdings of PAAS. Graybill Wealth Management LTD. purchased a new position in Pan American Silver in the first quarter valued at approximately $33,000. Northwestern Mutual Wealth Management Co. grew its holdings in Pan American Silver by 53.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,703 shares of the basic materials company's stock valued at $48,000 after purchasing an additional 594 shares during the last quarter. Mark Sheptoff Financial Planning LLC acquired a new position in shares of Pan American Silver during the 2nd quarter worth approximately $51,000. Kiker Wealth Management LLC raised its stake in Pan American Silver by 42.4% in the 2nd quarter. Kiker Wealth Management LLC now owns 2,014 shares of the basic materials company's stock valued at $57,000 after purchasing an additional 600 shares during the last quarter. Finally, CWM LLC increased its stake in Pan American Silver by 32.1% in the second quarter. CWM LLC now owns 2,264 shares of the basic materials company's stock valued at $64,000 after purchasing an additional 550 shares during the last quarter. 55.43% of the stock is owned by hedge funds and other institutional investors.

About Pan American Silver

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.