Pan American Silver (NYSE:PAAS) Shares Gap Down After Earnings Miss

Key Points

• Pan American Silver shares fell sharply, opening at $48.00 versus a prior close of $52.38, after quarterly earnings and revenue missed analyst expectations.
• The company reported $0.73 in EPS on $1.12 billion in revenue, although revenue increased 38.4% year over year and profitability remained strong with a 31.66% net margin.
• Pan American Silver raised its quarterly dividend to $0.184 per share, while analysts maintained a consensus “Moderate Buy” rating with a $70.43 price target despite some recent downgrades.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $52.38, but opened at $48.00. Pan American Silver shares last traded at $47.9060, with a volume of 1,453,462 shares trading hands.

The basic materials company reported $0.73 earnings per share for the quarter, missing the consensus estimate of $0.84 by ($0.11). The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.16 billion. Pan American Silver had a return on equity of 19.50% and a net margin of 31.66%.The firm's revenue was up 38.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.43 EPS.

Pan American Silver Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Monday, August 24th will be given a dividend of $0.184 per share. This is a positive change from Pan American Silver's previous quarterly dividend of $0.18. This represents a $0.74 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, August 24th. Pan American Silver's payout ratio is 23.15%.

Wall Street Analyst Weigh In

A number of analysts recently commented on PAAS shares. Zacks Research cut shares of Pan American Silver from a "hold" rating to a "strong sell" rating in a research report on Friday, July 17th. Weiss Ratings lowered Pan American Silver from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, July 16th. Scotiabank reissued an "outperform" rating on shares of Pan American Silver in a research note on Tuesday, July 14th. Wall Street Zen downgraded Pan American Silver from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 12th. Finally, Jefferies Financial Group dropped their price target on Pan American Silver from $54.00 to $53.00 and set a "hold" rating on the stock in a research report on Monday, July 6th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Pan American Silver presently has an average rating of "Moderate Buy" and a consensus price target of $70.43.

Institutional Investors Weigh In On Pan American Silver

Several institutional investors have recently added to or reduced their stakes in PAAS. NFJ Investment Group LLC acquired a new stake in shares of Pan American Silver in the 2nd quarter valued at about $25,000. Parallel Advisors LLC boosted its position in Pan American Silver by 151.8% during the 3rd quarter. Parallel Advisors LLC now owns 642 shares of the basic materials company's stock worth $25,000 after acquiring an additional 387 shares during the last quarter. Fifth Third Bancorp grew its stake in shares of Pan American Silver by 1,336.1% during the 1st quarter. Fifth Third Bancorp now owns 517 shares of the basic materials company's stock worth $28,000 after acquiring an additional 481 shares in the last quarter. Danske Bank A S acquired a new stake in shares of Pan American Silver in the second quarter valued at approximately $30,000. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Pan American Silver in the fourth quarter worth $34,000. 55.43% of the stock is owned by institutional investors.

Pan American Silver Price Performance

The company's fifty day moving average is $46.07 and its 200 day moving average is $53.35. The firm has a market cap of $19.87 billion, a price-to-earnings ratio of 15.32, a PEG ratio of 4.48 and a beta of 0.73. The company has a quick ratio of 2.11, a current ratio of 2.84 and a debt-to-equity ratio of 0.11.

Pan American Silver Company Profile

Pan American Silver Corp. NYSE: PAAS is a Vancouver-based mining company and one of the world’s largest primary silver producers. The company’s core activities encompass the exploration, development, extraction and processing of silver, with significant by-product production of gold, zinc and lead. Pan American Silver maintains a vertically integrated operating model, covering the full mining value chain from resource discovery through to refined metal production.

With a geographic footprint concentrated across the Americas, Pan American Silver operates multiple mines in Mexico, Peru, Argentina and Bolivia, and is advancing several development and exploration projects in Chile and Ecuador.

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