Alamos Gold (NYSE:AGI) Shares Gap Down - Time to Sell?

Key Points

• Alamos Gold shares fell sharply: AGI opened at $29.17 versus a prior close of $31.67 and was last trading near $28.91, down about 8.4%.
• Analyst sentiment remains mostly positive: Nine analysts rate the stock a Buy and one a Sell, producing a “Moderate Buy” consensus and an average price target of $47.50, though ratings range from Zacks’ “strong sell” to RBC’s $42 target.
• Underlying financial results were strong: The company beat quarterly EPS estimates ($0.59 versus $0.52), reported 35.6% year-over-year revenue growth, and maintains low leverage with a debt-to-equity ratio of 0.04; institutional investors own 64.33% of shares.

Alamos Gold Inc. (NYSE:AGI - Get Free Report) TSE: AGI's stock price gapped down prior to trading on Thursday. The stock had previously closed at $31.67, but opened at $29.17. Alamos Gold shares last traded at $28.9090, with a volume of 1,190,278 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AGI. Scotiabank restated an "outperform" rating on shares of Alamos Gold in a report on Tuesday, July 14th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $42.00 target price on shares of Alamos Gold in a research report on Wednesday, September 16th. Zacks Research cut shares of Alamos Gold from a "hold" rating to a "strong sell" rating in a research report on Monday, October 5th. Bank of America lowered their price target on shares of Alamos Gold from $50.00 to $39.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Finally, Weiss Ratings raised shares of Alamos Gold from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $47.50.

Alamos Gold Trading Down 8.4%

The company has a quick ratio of 1.67, a current ratio of 2.07 and a debt-to-equity ratio of 0.04. The company's 50-day moving average is $34.22 and its 200-day moving average is $38.32. The stock has a market capitalization of $12.15 billion, a price-to-earnings ratio of 10.45, a PEG ratio of 0.46 and a beta of 0.59.

Alamos Gold (NYSE:AGI - Get Free Report) TSE: AGI last posted its earnings results on Wednesday, July 29th. The basic materials company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.52 by $0.07. Alamos Gold had a net margin of 52.64% and a return on equity of 19.28%. The company had revenue of $594.10 million for the quarter, compared to analyst estimates of $593.58 million. During the same period in the previous year, the business posted $0.34 EPS. Alamos Gold's revenue was up 35.6% on a year-over-year basis. Research analysts anticipate that Alamos Gold Inc. will post 2.06 earnings per share for the current fiscal year.

Alamos Gold Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 10th were paid a dividend of $0.04 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $0.16 annualized dividend and a yield of 0.6%. Alamos Gold's dividend payout ratio (DPR) is 5.78%.

Institutional Investors Weigh In On Alamos Gold

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sumitomo Mitsui Trust Group Inc. lifted its stake in Alamos Gold by 6.4% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 96,818 shares of the basic materials company's stock worth $3,136,000 after acquiring an additional 5,823 shares during the last quarter. Vise Technologies Inc. acquired a new position in Alamos Gold during the 3rd quarter worth approximately $410,000. Kingswood Wealth Advisors LLC purchased a new stake in shares of Alamos Gold in the 3rd quarter valued at approximately $269,000. Signaturefd LLC increased its position in shares of Alamos Gold by 86.7% in the 3rd quarter. Signaturefd LLC now owns 4,839 shares of the basic materials company's stock valued at $157,000 after purchasing an additional 2,247 shares during the last quarter. Finally, Evergreen Capital Management LLC raised its holdings in shares of Alamos Gold by 0.6% in the 3rd quarter. Evergreen Capital Management LLC now owns 106,348 shares of the basic materials company's stock valued at $3,445,000 after purchasing an additional 662 shares in the last quarter. Hedge funds and other institutional investors own 64.33% of the company's stock.

Alamos Gold Company Profile

Alamos Gold Inc is a Canadian-based intermediate gold producer engaged in the exploration, development and operation of gold mines. The company produces gold doré and concentrate from its mining operations and also evaluates opportunities to expand existing assets and develop new projects.

Alamos Gold's principal operations are located in Ontario, Canada, including the Young-Davidson underground mine and the Island Gold underground mine. The company also operates the Magino open-pit mine in Ontario, which became part of its portfolio through the acquisition of Argonaut Gold.

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