McEwen (NYSE:MUX) Shares Down 6.7% - Here's Why

Key Points

• McEwen shares fell 6.7% to $18.75, with trading volume down 87% from its average daily level.
• Analysts maintain a generally positive outlook, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and a $28.00 average price target.
• The company’s latest quarterly results missed expectations: earnings were $0.14 per share versus $0.28 forecast, while revenue of $59.23 million fell short of the $65.51 million estimate.

McEwen Inc. (NYSE:MUX - Get Free Report) TSE: MUX's stock price traded down 6.7% on Wednesday . The company traded as low as $18.75 and last traded at $18.75. Approximately 148,080 shares traded hands during trading, a decline of 87% from the average daily volume of 1,161,603 shares. The stock had previously closed at $20.09.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on MUX shares. Zacks Research upgraded shares of McEwen from a "strong sell" rating to a "hold" rating in a research report on Friday, September 11th. HC Wainwright restated a "buy" rating and set a $28.00 price objective (down from $29.50) on shares of McEwen in a report on Friday, August 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of McEwen in a research report on Friday, August 28th. Roth Capital set a $31.00 price target on McEwen and gave the stock a "buy" rating in a research note on Monday, August 10th. Finally, Wall Street Zen raised shares of McEwen from a "sell" rating to a "hold" rating in a report on Saturday, September 12th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $28.00.

McEwen Trading Down 6.4%

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 firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of 14.92 and a beta of 1.26. The firm's 50 day moving average is $18.97 and its 200 day moving average is $20.41.

McEwen (NYSE:MUX - Get Free Report) TSE: MUX last announced its earnings results on Wednesday, August 5th. The basic materials company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.14). McEwen had a net margin of 32.46% and a return on equity of 13.48%. The company had revenue of $59.23 million for the quarter, compared to analysts' expectations of $65.51 million. Equities analysts forecast that McEwen Inc. will post 0.83 earnings per share for the current year.

Insider Buying and Selling at McEwen

In related news, Director Richard Brissenden sold 3,275 shares of the firm's stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $18.13, for a total transaction of $59,375.75. Following the completion of the sale, the director directly owned 18,022 shares in the company, valued at approximately $326,738.86. This trade represents a 15.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 14.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On McEwen

Hedge funds have recently added to or reduced their stakes in the company. Synergy Asset Management LLC boosted its holdings in shares of McEwen by 31.6% during the 2nd quarter. Synergy Asset Management LLC now owns 803,122 shares of the basic materials company's stock worth $14,561,000 after buying an additional 193,005 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of McEwen by 15.7% in the 1st 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 in the last quarter. Winmill & CO. Inc. bought a new stake in McEwen during the 4th quarter worth approximately $879,000. Marathon Trading Investment Management LLC bought a new position in shares of McEwen in the fourth quarter valued at about $3,522,000. Finally, Bank of America Corp DE grew its stake in shares of 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 last quarter. Institutional investors and hedge funds own 17.03% of the company's stock.

McEwen Company Profile

McEwen Inc is a mining company focused on the exploration, development, and production of gold, silver, and copper. The company's portfolio includes operating mines, advanced development projects, and exploration properties in the United States, Canada, and Argentina.

Its principal gold assets include the Fox Complex in Ontario, Canada, and the Gold Bar mine in Nevada. McEwen also has an interest in the San José mine in Argentina, which has historically produced gold and silver, and is advancing the Los Azules copper project in San Juan Province, Argentina, through its McEwen Copper subsidiary.

McEwen was founded by mining entrepreneur Rob McEwen, who serves as chairman.

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