McEwen (NYSE:MUX) Reaches New 12-Month Low on Analyst Downgrade

Key Points

• McEwen shares hit a new 52-week low, trading as low as $12.86 after Weiss Ratings lowered its rating from Hold (C) to Hold (C-).
• The company’s third-quarter results missed expectations: it reported a $0.60-per-share loss versus expected earnings of $0.09, and revenue of $43.64 million versus estimates of $48.10 million. Production fell and costs rose, with the net loss widening to $36.7 million.
• Analyst views remain mixed, though MarketBeat lists a “Moderate Buy” consensus and a $29 average price target; two analysts rate the stock Buy and two rate it Hold.

McEwen Inc. (NYSE:MUX - Get Free Report) TSE: MUX's share price hit a new 52-week low during mid-day trading on Wednesday after Weiss Ratings downgraded the stock from a hold (c) rating to a hold (c-) rating. The company traded as low as $12.86 and last traded at $12.9820, with a volume of 197,504 shares traded. The stock had previously closed at $13.55.

Other equities analysts have also recently issued reports about the company. HC Wainwright decreased their price target on McEwen from $28.00 to $27.00 and set a "buy" rating on the stock in a research note on Tuesday. Zacks Research raised McEwen from a "strong sell" rating to a "hold" rating in a research note on Friday, September 11th. Roth Capital set a $31.00 price objective on McEwen and gave the company a "buy" rating in a research note on Monday, August 10th. Finally, Wall Street Zen cut shares of McEwen from a "hold" rating to a "sell" rating in a report on Saturday, October 3rd. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $29.00.

Key Stories Impacting McEwen

These are some of the MUX stories that stood out recently:

• Neutral Sentiment: A law firm announced an investigation and said shareholders who lost money may have recovery rights. The notice does not establish wrongdoing or an outcome. Investigation notice
• Negative Sentiment: Third-quarter results missed expectations: McEwen reported a loss of $0.60 per share versus consensus expectations for $0.09 in earnings, while revenue of $43.64 million fell short of the $48.10 million estimate. Q3 earnings results
• Negative Sentiment: Production declined to 22,852 gold-equivalent ounces as costs rose; the company’s net loss widened to $36.7 million. Coverage reported that MUX shares fell sharply following the results, making execution against the maintained guidance important for investor sentiment. Shares fall after Q3 revenue miss

Institutional Trading of McEwen

Several institutional investors have recently added to or reduced their stakes in MUX. State Street Corp boosted its holdings in shares of McEwen by 26.5% during the 2nd quarter. State Street Corp now owns 4,254,551 shares of the basic materials company's stock valued at $77,135,000 after acquiring an additional 891,024 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of McEwen by 15.7% during the first quarter. Dimensional Fund Advisors LP now owns 1,269,760 shares of the basic materials company's stock valued at $25,920,000 after purchasing an additional 172,687 shares during the last quarter. Synergy Asset Management LLC lifted its position in McEwen by 31.6% during the second quarter. Synergy Asset Management LLC now owns 803,122 shares of the basic materials company's stock valued at $14,561,000 after purchasing an additional 193,005 shares during the period. Bank of America Corp DE lifted its position in McEwen by 1,347.7% during the first quarter. Bank of America Corp DE now owns 534,824 shares of the basic materials company's stock valued at $10,921,000 after purchasing an additional 497,882 shares during the period. Finally, U S Global Investors Inc. boosted its holdings in McEwen by 220.9% in the third quarter. U S Global Investors Inc. now owns 320,914 shares of the basic materials company's stock worth $5,728,000 after purchasing an additional 220,914 shares during the last quarter. 17.03% of the stock is currently owned by hedge funds and other institutional investors.

McEwen Stock Down 3.8%

The company has a quick ratio of 1.61, a current ratio of 2.04 and a debt-to-equity ratio of 0.17. The company's fifty day moving average is $17.25 and its 200-day moving average is $20.51. The company has a market cap of $799.89 million, a PE ratio of 19.46 and a beta of 1.31.

McEwen (NYSE:MUX - Get Free Report) TSE: MUX last issued its quarterly earnings data on Monday, November 9th. The basic materials company reported ($0.60) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.69). McEwen had a return on equity of 7.00% and a net margin of 18.41%. The business had revenue of $43.64 million during the quarter, compared to the consensus estimate of $48.10 million. On average, analysts predict that McEwen Inc. will post 0.83 EPS for the current year.

About McEwen

McEwen Inc., formerly known as McEwen Mining, is a metals exploration and mining company focused on gold, silver and copper. Its activities include operating mines, advancing development projects and exploring for additional mineral resources. The company's assets and projects span the United States, Canada, Mexico and Argentina. Its portfolio includes gold and silver properties as well as the Los Azules copper project in Argentina, which is being advanced through its McEwen Copper subsidiary. McEwen was founded by Rob McEwen, who serves as the company's chairman and chief executive officer.

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