Aura Minerals (NASDAQ:AUGO) Trading Down 5.1% - Should You Sell?

Key Points

• Aura Minerals shares fell 5.1% to $80.24 in midday trading, with volume down 62% from the average. The stock’s consensus analyst rating is “Hold,” with an average price target of $79.27.
• Analyst views are mixed: JPMorgan and Bank of America cut their price targets but maintained positive ratings, while Zacks Research downgraded the stock to “Strong Sell.”
• The company reported $2.57 in quarterly EPS on $335.97 million in revenue and pays an annualized dividend of $2.88 per share, but insiders sold more than 1 million shares worth approximately $84.8 million over the past 90 days.

Shares of Aura Minerals Inc. (NASDAQ:AUGO - Get Free Report) fell 5.1% on Monday . The stock traded as low as $79.90 and last traded at $80.24. 370,701 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 982,836 shares. The stock had previously closed at $84.53.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on AUGO shares. Weiss Ratings upgraded Aura Minerals from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, August 7th. JPMorgan Chase & Co. reduced their target price on shares of Aura Minerals from $104.50 to $91.00 and set an "overweight" rating on the stock in a research report on Thursday, July 16th. Zacks Research lowered shares of Aura Minerals from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 28th. Bank of America lowered their price target on shares of Aura Minerals from $122.00 to $94.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Finally, Wall Street Zen raised shares of Aura Minerals from a "hold" rating to a "buy" rating in a research note on Saturday. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $79.27.

Aura Minerals Stock Down 3.7%

The company has a quick ratio of 0.82, a current ratio of 1.06 and a debt-to-equity ratio of 0.82. The company has a fifty day simple moving average of $66.24 and a 200 day simple moving average of $74.33. The firm has a market capitalization of $6.82 billion and a P/E ratio of 22.99.

Aura Minerals (NASDAQ:AUGO - Get Free Report) last released its earnings results on Tuesday, June 30th. The company reported $2.57 EPS for the quarter. The firm had revenue of $335.97 million for the quarter. Aura Minerals had a return on equity of 103.62% and a net margin of 23.18%. On average, equities analysts expect that Aura Minerals Inc. will post 5.5 EPS for the current fiscal year.

Aura Minerals Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Tuesday, August 18th were paid a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date was Tuesday, August 18th. Aura Minerals's dividend payout ratio (DPR) is currently 81.36%.

Insiders Place Their Bets

In related news, Director Mauad Bruno Sousa sold 280,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $81.67, for a total transaction of $22,867,600.00. Following the completion of the sale, the director owned 168,765 shares of the company's stock, valued at $13,783,037.55. This trade represents a 62.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Luvizotto Glauber Rosa sold 64,713 shares of Aura Minerals stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $80.20, for a total value of $5,189,982.60. Following the completion of the sale, the chief operating officer directly owned 224,515 shares of the company's stock, valued at approximately $18,006,103. The trade was a 22.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,042,222 shares of company stock valued at $84,804,962.

Institutional Investors Weigh In On Aura Minerals

Several institutional investors have recently modified their holdings of the business. California State Teachers Retirement System purchased a new position in Aura Minerals in the 2nd quarter worth about $86,494,000. Bank of America Corp DE grew its stake in shares of Aura Minerals by 42.5% in the first quarter. Bank of America Corp DE now owns 977,212 shares of the company's stock worth $79,740,000 after acquiring an additional 291,623 shares during the period. SPX Gestao de Recursos Ltda raised its holdings in shares of Aura Minerals by 8.8% during the fourth quarter. SPX Gestao de Recursos Ltda now owns 877,211 shares of the company's stock valued at $44,225,000 after purchasing an additional 71,289 shares during the last quarter. Marshall Wace LLP raised its holdings in shares of Aura Minerals by 32.7% during the fourth quarter. Marshall Wace LLP now owns 623,662 shares of the company's stock valued at $31,439,000 after purchasing an additional 153,828 shares during the last quarter. Finally, Jennison Associates LLC bought a new position in Aura Minerals during the first quarter valued at approximately $50,378,000.

About Aura Minerals

We are an Americas gold and copper production company with a significant portfolio of mining operations. Our mission is to deliver long-term value by unlocking operational efficiencies, responsibly growing our portfolio with a focus on return on invested capital, responsible mining practices and a commitment to sustainability. We operate with a decentralized culture, supported by a lean corporate team that ensures agile and dynamic management and decision-making processes, focused on high operational sustainability compliance standards.

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