First Majestic Silver (NYSE:AG) Shares Gap Down - Here's What Happened

Key Points

• First Majestic Silver shares fell 5.2%, opening at $17.80 versus the prior close of $19.01, with approximately 2.1 million shares traded.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $23.83 target price, although some firms maintained or downgraded the stock to “Hold” and Scotiabank lowered its target.
• The company missed quarterly expectations, reporting $0.21 EPS versus $0.25 expected and revenue of $415.5 million versus $496 million forecast. Its quarterly dividend was also reduced to $0.0152 per share from $0.0171.

First Majestic Silver Corp. (NYSE:AG - Get Free Report) TSE: FR's stock price gapped down prior to trading on Monday. The stock had previously closed at $19.01, but opened at $17.80. First Majestic Silver shares last traded at $18.1110, with a volume of 2,100,824 shares.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. ATB Cormark Capital Markets raised First Majestic Silver from a "hold" rating to a "moderate buy" rating in a research note on Friday, July 10th. HC Wainwright upped their target price on First Majestic Silver from $26.00 to $27.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Wall Street Zen cut First Majestic Silver from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Weiss Ratings reissued a "hold (c)" rating on shares of First Majestic Silver in a research report on Wednesday, September 2nd. Finally, Scotiabank decreased their price target on shares of First Majestic Silver from $23.00 to $22.50 and set a "sector perform" rating for the company in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $23.83.

First Majestic Silver Trading Down 5.2%

The company has a quick ratio of 2.38, a current ratio of 2.57 and a debt-to-equity ratio of 0.08. The firm has a 50 day moving average price of $18.93 and a 200 day moving average price of $19.40. The stock has a market capitalization of $8.88 billion, a PE ratio of 25.40 and a beta of 1.00.

First Majestic Silver (NYSE:AG - Get Free Report) TSE: FR last announced its earnings results on Thursday, July 30th. The mining company reported $0.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.04). First Majestic Silver had a net margin of 21.18% and a return on equity of 13.36%. The company had revenue of $415.50 million for the quarter, compared to analysts' expectations of $496.00 million. During the same period in the previous year, the firm earned $0.11 EPS. The firm's quarterly revenue was up 57.3% on a year-over-year basis. Equities analysts expect that First Majestic Silver Corp. will post 0.81 EPS for the current fiscal year.

First Majestic Silver Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, August 14th were issued a dividend of $0.0152 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.06 dividend on an annualized basis and a yield of 0.3%. This is a negative change from First Majestic Silver's previous quarterly dividend of $0.0171. First Majestic Silver's payout ratio is presently 8.45%.

Institutional Trading of First Majestic Silver

Several institutional investors and hedge funds have recently made changes to their positions in the company. Harbor Investment Advisory LLC purchased a new stake in First Majestic Silver in the 1st quarter valued at about $32,000. PNC Financial Services Group Inc. grew its holdings in shares of First Majestic Silver by 184.5% in the first quarter. PNC Financial Services Group Inc. now owns 1,508 shares of the mining company's stock valued at $32,000 after acquiring an additional 978 shares in the last quarter. Parallel Advisors LLC increased its position in shares of First Majestic Silver by 36.4% during the first quarter. Parallel Advisors LLC now owns 2,100 shares of the mining company's stock valued at $45,000 after acquiring an additional 560 shares during the last quarter. Sittner & Nelson LLC purchased a new stake in shares of First Majestic Silver during the fourth quarter valued at approximately $50,000. Finally, Bard Associates Inc. bought a new stake in First Majestic Silver during the fourth quarter worth $52,000. Hedge funds and other institutional investors own 27.16% of the company's stock.

First Majestic Silver Company Profile

First Majestic Silver Corp. is a mining company focused on the exploration, development, and production of silver, gold, lead, and zinc. The company generates revenue primarily by producing and selling metal concentrates, doré bars, and other refined precious-metal products.

Founded in 2002 and headquartered in Vancouver, British Columbia, First Majestic has historically concentrated its operations in Mexico and the United States. Its principal Mexican mining assets have included the San Dimas, Santa Elena, and La Encantada mines, while its U.S.

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