McEwen (NYSE:MUX) Shares Gap Down - Time to Sell?

Key Points

• McEwen shares fell sharply at the open, dropping from a prior close of $19.02 to $17.97 before recovering slightly to around $18.38.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $28.00, despite HC Wainwright trimming its target and several firms maintaining Hold ratings.
• The company’s latest quarterly results were weaker than expected: earnings per share came in at $0.14 versus $0.28 forecast, while revenue reached $59.23 million against expectations of $65.51 million.

McEwen Inc. (NYSE:MUX - Get Free Report) TSE: MUX's stock price gapped down before the market opened on Monday. The stock had previously closed at $19.02, but opened at $17.97. McEwen shares last traded at $18.3770, with a volume of 125,608 shares changing hands.

Wall Street Analysts Forecast Growth

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

McEwen Price Performance

The firm has a market capitalization of $1.11 billion, a PE ratio of 14.43 and a beta of 1.26. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.04 and a quick ratio of 1.61. The firm has a 50-day simple moving average of $19.08 and a 200-day simple moving average of $20.29.

McEwen (NYSE:MUX - Get Free Report) TSE: MUX last released its quarterly 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 business had revenue of $59.23 million for the quarter, compared to analysts' expectations of $65.51 million. As a group, equities analysts forecast that McEwen Inc. will post 0.83 earnings per share for the current year.

Hedge Funds Weigh In On McEwen

Several hedge funds have recently modified their holdings of the stock. KBC Group NV bought a new stake in shares of McEwen during the first quarter valued at approximately $27,000. Leonteq Securities AG bought a new position in McEwen in the first quarter worth approximately $31,000. Towarzystwo Funduszy Inwestycyjnych PZU SA bought a new position in McEwen in the fourth quarter worth approximately $93,000. Entropy Technologies LP purchased a new position in McEwen during the 1st quarter worth $206,000. Finally, Bank of New York Mellon Corp increased its holdings in McEwen by 5.8% during the 1st quarter. Bank of New York Mellon Corp now owns 10,780 shares of the basic materials company's stock worth $220,000 after purchasing an additional 589 shares during the period. Hedge funds and other institutional investors own 17.03% of the company's stock.

About McEwen

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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