Pan American Silver (NYSE:PAAS) Shares Gap Down - Time to Sell?

Key Points

• Pan American Silver's stock price significantly dropped from a previous close of $39.38 to an opening of $36.05, with its last trade recorded at $34.97 and a trading volume of over 3 million shares.
• The company recently raised its quarterly dividend to $0.12 per share, resulting in an annualized dividend of $0.48 and a yield of 1.3%.
• Analysts have mixed views on Pan American Silver, with ratings ranging from "Strong Buy" to "Hold," and a consensus target price of $38.50, despite some downgrades on its price objectives by firms like Scotiabank.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS's stock price gapped down before the market opened on Tuesday . The stock had previously closed at $39.38, but opened at $36.05. Pan American Silver shares last traded at $34.97, with a volume of 3,045,157 shares traded.

Analyst Upgrades and Downgrades

PAAS has been the subject of several research reports. Scotiabank decreased their price objective on shares of Pan American Silver from $36.50 to $36.00 and set an "outperform" rating for the company in a research note on Friday, September 5th. National Bankshares reiterated an "outperform" rating on shares of Pan American Silver in a research note 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 reissued a "buy (b)" rating on shares of Pan American Silver in a report on Tuesday, October 14th. Finally, Zacks Research cut Pan American Silver from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 19th. One research 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 stock. According to MarketBeat.com, Pan American Silver has a consensus rating of "Moderate Buy" and a consensus target price of $38.50.

Pan American Silver Stock Performance

The company has a 50-day simple moving average of $36.04 and a two-hundred day simple moving average of $30.14. The firm has a market cap of $15.08 billion, a PE ratio of 24.59, a PEG ratio of 0.48 and a beta of 0.63. The company has a quick ratio of 2.11, a current ratio of 3.05 and a debt-to-equity ratio of 0.15.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last posted its quarterly earnings results on Wednesday, August 6th. The basic materials company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $811.90 million for the quarter, compared to analyst estimates of $782.12 million. During the same period last year, the company earned $0.11 EPS. Pan American Silver's revenue for the quarter was up 18.3% compared to the same quarter last year. As a group, equities research analysts forecast that Pan American Silver Corp. will post 1.26 earnings per share for the current year.

Pan American Silver Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, August 18th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Monday, August 18th. This is an increase from Pan American Silver's previous quarterly dividend of $0.10. Pan American Silver's dividend payout ratio (DPR) is 33.10%.

Institutional Trading of Pan American Silver

Large investors have recently modified their holdings of the stock. Vontobel Holding Ltd. purchased a new position in Pan American Silver during the second quarter worth about $2,521,000. Concurrent Investment Advisors LLC acquired a new position in Pan American Silver during the 1st quarter valued at about $222,000. D.A. Davidson & CO. bought a new stake in shares of Pan American Silver during the 1st quarter worth about $358,000. Intech Investment Management LLC raised its holdings in shares of Pan American Silver by 189.0% in the 1st quarter. Intech Investment Management LLC now owns 107,952 shares of the basic materials company's stock worth $2,788,000 after purchasing an additional 70,593 shares in the last quarter. Finally, Triasima Portfolio Management inc. raised its holdings in shares of Pan American Silver by 29.1% during the second quarter. Triasima Portfolio Management inc. now owns 211,010 shares of the basic materials company's stock valued at $5,975,000 after acquiring an additional 47,500 shares during the period. Hedge funds and other institutional investors own 55.43% of the company's stock.

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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