Fortuna Mining (NYSE:FSM) Stock Falls 7.4% - Here's Why

Key Points

• Fortuna Mining shares fell 7.4% to about $10.35 in mid-day trading, with volume below its average. The stock remains above its 200-day moving average but below its 50-day average.
• Analysts maintain a generally positive outlook, with four Buy ratings and one Hold rating, producing a consensus “Moderate Buy” rating and a $14 target price.
• The company’s latest quarterly results missed expectations, reporting $0.24 in EPS versus $0.29 expected and revenue of $318.4 million versus a $325 million consensus estimate. Institutional investors own 33.8% of the stock.

Fortuna Mining Corp. (NYSE:FSM - Get Free Report) TSE: FVI was down 7.4% during trading on Wednesday. The company traded as low as $10.51 and last traded at $10.3490. 3,866,839 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 6,321,827 shares. The stock had previously closed at $11.18.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on FSM shares. Wall Street Zen cut shares of Fortuna Mining from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 12th. Weiss Ratings upgraded shares of Fortuna Mining from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 8th. Zacks Research upgraded Fortuna Mining from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Scotiabank reissued an "outperform" rating on shares of Fortuna Mining in a research report on Thursday, July 30th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Fortuna Mining presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.00.

Fortuna Mining Stock Down 8.5%

The company's 50 day moving average is $11.27 and its two-hundred day moving average is $10.05. The company has a market capitalization of $3.03 billion, a PE ratio of 8.68 and a beta of 1.05. The company has a quick ratio of 2.50, a current ratio of 3.00 and a debt-to-equity ratio of 0.11.

Fortuna Mining (NYSE:FSM - Get Free Report) TSE: FVI last released its quarterly earnings data on Wednesday, August 5th. The basic materials company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.05). The business had revenue of $318.41 million for the quarter, compared to the consensus estimate of $325.00 million. Fortuna Mining had a net margin of 31.99% and a return on equity of 17.48%. On average, analysts anticipate that Fortuna Mining Corp. will post 1.24 earnings per share for the current year.

Institutional Investors Weigh In On Fortuna Mining

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Banque Cantonale Vaudoise lifted its holdings in shares of Fortuna Mining by 1,001.3% in the 1st quarter. Banque Cantonale Vaudoise now owns 6,553 shares of the basic materials company's stock valued at $65,000 after buying an additional 5,958 shares during the period. EverSource Wealth Advisors LLC boosted its position in Fortuna Mining by 52.8% during the first quarter. EverSource Wealth Advisors LLC now owns 8,195 shares of the basic materials company's stock worth $81,000 after purchasing an additional 2,832 shares in the last quarter. DGS Capital Management LLC raised its stake in shares of Fortuna Mining by 15.8% during the 1st quarter. DGS Capital Management LLC now owns 12,103 shares of the basic materials company's stock worth $120,000 after buying an additional 1,649 shares during the period. Integrated Wealth Concepts LLC lifted its position in shares of Fortuna Mining by 15.1% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 12,729 shares of the basic materials company's stock valued at $108,000 after buying an additional 1,672 shares in the last quarter. Finally, AXQ Capital LP purchased a new stake in Fortuna Mining in the 2nd quarter worth $403,000. 33.80% of the stock is currently owned by hedge funds and other institutional investors.

Fortuna Mining Company Profile

Fortuna Mining Corp. is a precious metals mining company formerly known as Fortuna Silver Mines Inc The company explores, develops, and operates mines producing gold and silver, with activities spanning Latin America and West Africa.

Fortuna's operating portfolio includes the Lindero gold mine in Argentina, the Séguéla gold mine in Côte d'Ivoire, the Yaramoko gold mine in Burkina Faso, and the Caylloma silver mine in Peru. The company also conducts mineral exploration and resource development in the regions surrounding its operations.

Founded in 2004, Fortuna initially focused on silver mining in Latin America before expanding into gold production and broadening its geographic presence.

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