Pan American Silver (NYSE:PAAS) Shares Down 10% - Should You Sell?

Key Points

• Pan American Silver Corp. shares fell 10% on Friday, trading at $37.82 after closing at $42.03, with a volume increase of 17% compared to the average daily trading volume.
• Analysts have mixed reviews on Pan American Silver, with Zacks cutting its rating to "hold," while National Bank Financial upgraded it to a "strong-buy," reflecting differing outlooks on the stock.
• The company recently announced a quarterly dividend increase to $0.12, marking a 20% boost from the previous quarterly dividend of $0.10, resulting in a dividend yield of 1.2%.

Shares of Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS were down 10% during trading on Friday . The company traded as low as $38.18 and last traded at $37.82. Approximately 5,841,390 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 5,004,336 shares. The stock had previously closed at $42.03.

Analysts Set New Price Targets

Several equities research analysts recently commented on PAAS shares. Zacks Research cut Pan American Silver from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 19th. Scotiabank dropped their target price on Pan American Silver from $36.50 to $36.00 and set an "outperform" rating on the stock in a report on Friday, September 5th. National Bank Financial raised Pan American Silver to a "strong-buy" rating in a report on Thursday, September 4th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Pan American Silver in a report on Tuesday. Finally, National Bankshares reaffirmed an "outperform" rating on shares of Pan American Silver in a report on Friday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $38.50.

Pan American Silver Price Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 3.05 and a quick ratio of 2.11. The stock has a market capitalization of $16.27 billion, a P/E ratio of 26.57, a PEG ratio of 0.65 and a beta of 0.63. The company's 50 day simple moving average is $35.76 and its two-hundred day simple moving average is $29.86.

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

Pan American Silver Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, August 18th were given a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Monday, August 18th. This is a boost from Pan American Silver's previous quarterly dividend of $0.10. Pan American Silver's dividend payout ratio is presently 33.10%.

Institutional Investors Weigh In On Pan American Silver

A number of institutional investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership lifted its position in shares of Pan American Silver by 5,674.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 6,141,108 shares of the basic materials company's stock valued at $174,406,000 after acquiring an additional 6,034,755 shares during the period. Norges Bank acquired a new position in shares of Pan American Silver during the 2nd quarter valued at $155,281,000. Connor Clark & Lunn Investment Management Ltd. lifted its position in shares of Pan American Silver by 319.1% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 4,451,864 shares of the basic materials company's stock valued at $115,009,000 after acquiring an additional 3,389,549 shares during the period. Invesco Ltd. lifted its position in shares of Pan American Silver by 49.5% during the 2nd quarter. Invesco Ltd. now owns 9,016,262 shares of the basic materials company's stock valued at $256,062,000 after acquiring an additional 2,986,434 shares during the period. Finally, AGF Management Ltd. acquired a new position in shares of Pan American Silver during the 2nd quarter valued at $59,883,000. 55.43% of the stock is owned by 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.

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