Traders Buy Large Volume of Pan American Silver Call Options (NYSE:PAAS)

Key Points

• Pan American Silver Corp. experienced a significant surge in call options trading, with 25,901 options acquired, marking a 190% increase over typical volumes.
• Institutional investors have notably increased their holdings in Pan American Silver, including a 661.2% increase by HSBC Holdings and a 319.1% increase by Connor Clark & Lunn Investment Management.
• The company's recent earnings exceeded expectations, reporting $0.42 earnings per share compared to an estimated $0.19, along with a 28.6% increase in quarterly revenue from the previous year.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS saw some unusual options trading activity on Tuesday. Stock investors purchased 25,901 call options on the company. Thisisanincreaseof190% compared to the average volume of 8,941 call options.

Institutional Trading of Pan American Silver

A number of hedge funds have recently added to or reduced their stakes in the stock. Concurrent Investment Advisors LLC acquired a new stake in shares of Pan American Silver during the first quarter valued at about $222,000. D.A. Davidson & CO. acquired a new stake in Pan American Silver during the 1st quarter valued at approximately $358,000. Renaissance Technologies LLC boosted its position in Pan American Silver by 110.0% during the fourth quarter. Renaissance Technologies LLC now owns 1,498,246 shares of the basic materials company's stock valued at $30,295,000 after acquiring an additional 784,906 shares during the last quarter. Credit Industriel ET Commercial bought a new position in shares of Pan American Silver in the 4th quarter worth about $8,537,000. Finally, Wellington Management Group LLP grew its stake in Pan American Silver by 191.0% during the fourth quarter. Wellington Management Group LLP now owns 167,847 shares of the basic materials company's stock worth $3,394,000 after purchasing an additional 110,170 shares during the period. Institutional investors and hedge funds own 55.43% of the company's stock.

Pan American Silver Price Performance

NYSE:PAAS traded up $0.18 during mid-day trading on Friday, reaching $31.62. The stock had a trading volume of 2,306,115 shares, compared to its average volume of 4,557,368. The stock has a 50-day simple moving average of $28.64 and a two-hundred day simple moving average of $25.99. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.93 and a quick ratio of 1.94. Pan American Silver has a 12 month low of $18.33 and a 12 month high of $32.10. The stock has a market capitalization of $11.44 billion, a PE ratio of 21.90, a P/E/G ratio of 0.39 and a beta of 0.60.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last released its earnings results on Wednesday, August 6th. The basic materials company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.40 by $0.03. The firm had revenue of $811.90 million for the quarter, compared to analysts' expectations of $782.12 million. Pan American Silver had a return on equity of 11.64% and a net margin of 16.80%. The business's revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.11 earnings per share. On average, equities analysts anticipate that Pan American Silver will post 1.26 earnings per share for the current year.

Analyst Ratings Changes

Several analysts have issued reports on PAAS shares. CIBC restated an "outperform" rating on shares of Pan American Silver in a research note on Tuesday, July 15th. TD Securities lowered their target price on Pan American Silver from $30.00 to $26.00 and set a "hold" rating on the stock in a research note on Thursday, May 22nd. Wall Street Zen upgraded Pan American Silver from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 15th. Scotiabank reiterated a "sector perform" rating on shares of Pan American Silver in a research report on Monday, April 14th. Finally, BMO Capital Markets began coverage on shares of Pan American Silver in a research report on Wednesday, April 16th. They issued a "market perform" rating for the company. Four investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $31.40.

Pan American Silver Company Profile

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.