Santacruz Silver Mining (NASDAQ:SCZM) Shares Gap Down - Here's What Happened

Key Points

• Santacruz Silver Mining shares fell sharply, opening at $8.80 versus a prior close of $9.48 before last trading near $8.99.
• Analyst sentiment is mixed but leans cautious: the consensus rating is Hold with a $10.00 target price, following downgrades from Weiss Ratings and Wall Street Zen, while Maxim Group maintained a Buy rating but cut its target to $10.
• The company’s latest quarterly results missed expectations, reporting $0.02 in earnings per share versus $0.37 expected and revenue of $113.46 million versus a $135 million estimate.

Santacruz Silver Mining (NASDAQ:SCZM - Get Free Report)'s share price gapped down before the market opened on Monday. The stock had previously closed at $9.48, but opened at $8.80. Santacruz Silver Mining shares last traded at $8.9890, with a volume of 198,572 shares traded.

Analyst Ratings Changes

A number of equities analysts have weighed in on SCZM shares. Weiss Ratings lowered Santacruz Silver Mining from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, September 2nd. Maxim Group cut their price objective on Santacruz Silver Mining from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Finally, Wall Street Zen downgraded Santacruz Silver Mining from a "buy" rating to a "hold" rating in a research note on Saturday, August 29th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $10.00.

Santacruz Silver Mining Stock Performance

The company has a market capitalization of $833.75 million and a price-to-earnings ratio of 27.98. The firm has a fifty day moving average price of $8.61.

Santacruz Silver Mining (NASDAQ:SCZM - Get Free Report) last released its quarterly earnings results on Friday, August 14th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.37 by ($0.35). The company had revenue of $113.46 million during the quarter, compared to the consensus estimate of $135.00 million. Santacruz Silver Mining had a net margin of 9.97% and a return on equity of 21.55%. As a group, equities analysts forecast that Santacruz Silver Mining will post 1.06 earnings per share for the current fiscal year.

Institutional Trading of Santacruz Silver Mining

Several hedge funds have recently added to or reduced their stakes in the company. Tidal Investments LLC acquired a new position in Santacruz Silver Mining in the 2nd quarter valued at $122,000. Engineers Gate Manager LP bought a new position in Santacruz Silver Mining during the 2nd quarter worth $148,000. NewEdge Advisors LLC acquired a new stake in shares of Santacruz Silver Mining during the second quarter worth $212,000. Squarepoint Ops LLC acquired a new stake in shares of Santacruz Silver Mining during the second quarter worth $238,000. Finally, TD Waterhouse Canada Inc. bought a new stake in shares of Santacruz Silver Mining in the second quarter valued at about $51,000.

About Santacruz Silver Mining

Santacruz Silver Mining Ltd. is a Canadian mining company focused on the acquisition, exploration, development and operation of silver and polymetallic properties. The company produces silver along with lead, zinc and other associated metals from its mining operations and processing facilities.

Santacruz's principal operating activities are located in Mexico, a country with a long-established mining industry. Its portfolio has included the Zimapan mining complex in Hidalgo, the Rosario mine in San Luis Potosí and the Veta Grande project in Zacatecas.

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