Pan American Silver (NYSE:PAAS) Stock Price Up 12.6% After Strong Earnings

Key Points

• Shares jumped 12.6% after Pan American reported Q results, with EPS of $1.09 beating the $1.06 consensus while revenue came in at $1.15B (vs. $1.25B expected) but was up 49.3% year‑over‑year.
• Dividend increased to $0.18 per quarter (annualized $0.72), implying a 1.3% yield and a 28.8% payout ratio.
• Analyst sentiment is broadly positive with a "Moderate Buy" consensus and a $59.67 average price target; the company has a $23.76B market cap and reported strong profitability (net margin 27.07%, ROE 16.38%).

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS shares rose 12.6% on Wednesday following a better than expected earnings announcement. The company traded as high as $56.78 and last traded at $56.8610. Approximately 1,786,683 shares were traded during trading, a decline of 76% from the average daily volume of 7,518,855 shares. The stock had previously closed at $50.52.

The basic materials company reported $1.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.03. The company had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.25 billion. Pan American Silver had a return on equity of 16.38% and a net margin of 27.07%.Pan American Silver's revenue for the quarter was up 49.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.42 earnings per share.

Pan American Silver Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Monday, March 2nd were given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.3%. This is a boost from Pan American Silver's previous quarterly dividend of $0.14. The ex-dividend date of this dividend was Monday, March 2nd. Pan American Silver's payout ratio is presently 28.80%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on PAAS shares. Wall Street Zen raised Pan American Silver from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Canadian Imperial Bank of Commerce set a $88.00 price target on Pan American Silver and gave the company an "outperform" rating in a research report on Wednesday, February 4th. Zacks Research lowered Pan American Silver from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, April 22nd. Scotiabank upped their price target on Pan American Silver from $47.00 to $64.00 and gave the company an "outperform" rating in a research report on Monday, January 26th. Finally, Jefferies Financial Group lowered their price target on shares of Pan American Silver from $58.00 to $54.00 and set a "hold" rating on the stock in a report on Wednesday, January 21st. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $59.67.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Veracity Capital LLC grew its stake in Pan American Silver by 1.9% in the fourth quarter. Veracity Capital LLC now owns 9,868 shares of the basic materials company's stock valued at $511,000 after purchasing an additional 185 shares in the last quarter. RFG Advisory LLC grew its stake in Pan American Silver by 2.5% in the first quarter. RFG Advisory LLC now owns 7,731 shares of the basic materials company's stock valued at $422,000 after purchasing an additional 191 shares in the last quarter. Grand Central Investment Group boosted its stake in shares of Pan American Silver by 0.5% during the 1st quarter. Grand Central Investment Group now owns 44,801 shares of the basic materials company's stock worth $2,447,000 after acquiring an additional 211 shares in the last quarter. Metis Global Partners LLC boosted its stake in shares of Pan American Silver by 1.5% during the 4th quarter. Metis Global Partners LLC now owns 16,646 shares of the basic materials company's stock worth $863,000 after acquiring an additional 239 shares in the last quarter. Finally, North Star Investment Management Corp. boosted its stake in shares of Pan American Silver by 7.8% during the 1st quarter. North Star Investment Management Corp. now owns 3,451 shares of the basic materials company's stock worth $189,000 after acquiring an additional 251 shares in the last quarter. Hedge funds and other institutional investors own 55.43% of the company's stock.

Pan American Silver Stock Performance

The company has a market cap of $23.76 billion, a P/E ratio of 22.56, a P/E/G ratio of 0.42 and a beta of 0.65. The firm has a 50 day moving average price of $56.79 and a 200-day moving average price of $51.44. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.97 and a current ratio of 2.69.

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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