First Majestic Silver (NYSE:AG) Shares Gap Up - Should You Buy?

Key Points

• First Majestic Silver shares opened higher, rising from a prior close of $19.86 to $20.48 and trading near $21.00. The company has a $10.25 billion market capitalization and trades above its 50-day moving average but near its 200-day average.
• Analyst sentiment remains positive but mixed, with the stock carrying a consensus “Moderate Buy” rating and an average price target of $23.83. Price targets range from $22.50 to $27.00.
• First Majestic reported strong year-over-year revenue growth of 57.3%, but its quarterly earnings and revenue came in below analyst expectations. The company also pays a modest $0.06 annualized dividend, yielding about 0.3%.

First Majestic Silver Corp. (NYSE:AG - Get Free Report) TSE: FR gapped up prior to trading on Wednesday . The stock had previously closed at $19.86, but opened at $20.48. First Majestic Silver shares last traded at $20.9960, with a volume of 1,691,435 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Wall Street Zen lowered shares of First Majestic Silver from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. ATB Cormark Capital Markets upgraded shares of First Majestic Silver from a "hold" rating to a "moderate buy" rating in a report on Friday, July 10th. Weiss Ratings cut shares of First Majestic Silver from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, June 5th. Scotiabank dropped their price target on shares of First Majestic Silver from $23.00 to $22.50 and set a "sector perform" rating on the stock in a research report on Tuesday, July 14th. Finally, HC Wainwright lifted their price target on First Majestic Silver from $26.00 to $27.00 and gave the company a "buy" rating in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $23.83.

First Majestic Silver Stock Performance

The company's fifty day moving average price is $17.80 and its 200 day moving average price is $20.27. The company has a market cap of $10.25 billion, a PE ratio of 29.46 and a beta of 0.99. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.57 and a quick ratio of 2.38.

First Majestic Silver (NYSE:AG - Get Free Report) TSE: FR last released its quarterly earnings results on Thursday, July 30th. The mining company reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates 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 firm had revenue of $415.50 million for the quarter, compared to the consensus estimate of $496.00 million. During the same period in the previous year, the business earned $0.11 earnings per share. The firm's revenue for the quarter was up 57.3% on a year-over-year basis. On average, equities research analysts predict that First Majestic Silver Corp. will post 0.81 earnings per share for the current year.

First Majestic Silver Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Friday, August 14th were given a dividend of $0.0152 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.06 annualized dividend and a dividend yield of 0.3%. First Majestic Silver's dividend payout ratio (DPR) is currently 8.45%.

Hedge Funds Weigh In On First Majestic Silver

Hedge funds and other institutional investors have recently modified their holdings of the business. Harbor Investment Advisory LLC purchased a new stake in shares of First Majestic Silver during the first quarter valued at approximately $32,000. EFG International AG purchased a new position in First Majestic Silver in the fourth quarter worth $25,000. PNC Financial Services Group Inc. grew its stake in First Majestic Silver by 184.5% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,508 shares of the mining company's stock valued at $32,000 after purchasing an additional 978 shares during the period. Parallel Advisors LLC grew its stake in First Majestic Silver by 36.4% in the 1st quarter. Parallel Advisors LLC now owns 2,100 shares of the mining company's stock valued at $45,000 after purchasing an additional 560 shares during the period. Finally, Sittner & Nelson LLC purchased a new stake in shares of First Majestic Silver during the 4th quarter valued at $50,000. Hedge funds and other institutional investors own 27.16% of the company's stock.

About First Majestic Silver

First Majestic Silver Corp. NYSE: AG engages in the production of silver from its wholly owned operations in Mexico. Headquartered in Vancouver, British Columbia, the company focuses on acquiring, developing and operating high-grade silver projects. Established in 2002, First Majestic has built a multi-mine portfolio to supply silver primarily for the global industrial and investment markets while generating by-products such as gold, lead and zinc concentrates.

First Majestic’s principal operations are located in the historic Mexican Silver Belt, with producing mines including La Encantada in Coahuila, Santa Elena in Sonora and La Parrilla in Durango.

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