McEwen (NYSE:MUX) Shares Gap Down After Earnings Miss

Key Points

• McEwen shares fell sharply after opening at $14.91 versus a prior close of $16.23; the article reports the stock was down 15.7%.
• The company missed quarterly expectations, reporting a loss of $0.60 per share versus analysts’ forecast of $0.10 earnings, and revenue of $43.64 million versus an estimate of $56.40 million.
• Analyst views were mixed, but MarketBeat’s consensus rating was “Moderate Buy,” with a consensus price target of $29.50.

McEwen Inc. (NYSE:MUX - Get Free Report) TSE: MUX's stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $16.23, but opened at $14.91. McEwen shares last traded at $13.5550, with a volume of 395,473 shares traded.

The basic materials company reported ($0.60) EPS for the quarter, missing the consensus estimate of $0.10 by ($0.70). The company had revenue of $43.64 million for the quarter, compared to analyst estimates of $56.40 million. McEwen had a net margin of 32.46% and a return on equity of 13.48%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on MUX. Wall Street Zen cut shares of McEwen from a "hold" rating to a "sell" rating in a research note on Saturday, October 3rd. HC Wainwright reaffirmed a "buy" rating and set a $28.00 price target (down from $29.50) on shares of McEwen in a research report on Friday, August 7th. Roth Capital set a $31.00 price target on shares of McEwen and gave the company a "buy" rating in a research note on Monday, August 10th. Weiss Ratings reissued a "hold (c)" rating on shares of McEwen in a research report on Friday, August 28th. Finally, Zacks Research upgraded shares of McEwen from a "strong sell" rating to a "hold" rating in a research note on Friday, September 11th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $29.50.

Institutional Investors Weigh In On McEwen

A number of institutional investors have recently made changes to their positions in MUX. State Street Corp increased its stake in shares of McEwen by 26.5% during the second quarter. State Street Corp now owns 4,254,551 shares of the basic materials company's stock worth $77,135,000 after purchasing an additional 891,024 shares during the period. Dimensional Fund Advisors LP boosted its stake in 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 during the period. Synergy Asset Management LLC grew its holdings in McEwen by 31.6% in the 2nd quarter. Synergy Asset Management LLC now owns 803,122 shares of the basic materials company's stock valued at $14,561,000 after buying an additional 193,005 shares in the last quarter. Bank of America Corp DE grew its holdings in McEwen by 1,347.7% in the 1st quarter. Bank of America Corp DE now owns 534,824 shares of the basic materials company's stock valued at $10,921,000 after buying an additional 497,882 shares in the last quarter. Finally, U S Global Investors Inc. grew its holdings in McEwen by 220.9% in the 3rd quarter. U S Global Investors Inc. now owns 320,914 shares of the basic materials company's stock valued at $5,728,000 after buying an additional 220,914 shares in the last quarter. Institutional investors own 17.03% of the company's stock.

McEwen Stock Down 15.7%

The company has a current ratio of 2.04, a quick ratio of 1.61 and a debt-to-equity ratio of 0.17. The stock has a market cap of $839.02 million, a P/E ratio of 10.84 and a beta of 1.31. The firm has a 50-day simple moving average of $17.39 and a two-hundred day simple moving average of $20.57.

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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