Are Smart Investors Making the Right Decision? Gatos Silver Inc. (GATO)

Gatos Silver Inc. (NYSE: GATO) stock jumped 2.79% on Wednesday to $3.69 against a previous-day closing price of $3.59. With 0.14 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.39 million shares. The 52-week range on GATO shows that it touched its highest point at $13.68 and its lowest point at $2.20 during that stretch. It currently has a 1-year price target of $4.19.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GATO was up-trending over the past week, with a rise of 1.65%, but this was up by 5.43% over a month. Three-month performance surged to 5.13% while six-month performance rose 19.42%. The stock lost -72.46% in the past year, while it has lost -64.45% so far this year. A look at the trailing 12-month EPS for GATO yields -0.21 with Next year EPS estimates of 0.37. For the next quarter, that number is 0.15. This implies an EPS growth rate of 144.10% for this year and -9.80% for next year.

Float and Shares Shorts:

At present, 69.13 million GATO shares are outstanding with a float of 68.51 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.18 million, which was 3.15% higher than short shares on Sep 14, 2022. In addition to Mr. Dale E. Andres as the firm’s CEO & Director, Mr. Pieter Andre van Niekerk serves as its Chief Financial Officer.


Institutional Ownership:

Through their ownership of 87.55% of GATO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.65% of GATO, in contrast to 30.67% held by mutual funds. Shares owned by individuals account for 19.79%. As the largest shareholder in GATO with 12.88% of the stake, Fidelity Management & Research Co holds 8,905,158 shares worth 8,905,158. A second-largest stockholder of GATO, The Municipal Employees’ Retireme, holds 6,205,259 shares, controlling over 8.98% of the firm’s shares. Exor Investments is the third largest shareholder in GATO, holding 2,872,657 shares or 4.16% stake. With a 8.68% stake in GATO, the Fidelity Select Port. – Gold Port is the largest stakeholder. A total of 6,000,000 shares are owned by the mutual fund manager. The ETFMG Prime Junior Silver ETF, which owns about 3.51% of GATO stock, is the second-largest Mutual Fund holder. It holds 2,427,957 shares valued at 8.01 million. Vanguard Total Stock Market Index holds 2.64% of the stake in GATO, owning 1,823,104 shares worth 6.02 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GATO since 4 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GATO analysts setting a high price target of $5.75 and a low target of $3.75, the average target price over the next 12 months is $4.31. Based on these targets, GATO could surge 55.83% to reach the target high and rise by 1.63% to reach the target low. Reaching the average price target will result in a growth of 16.8% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GATO will report FY 2022 earnings on 03/27/2023. Analysts have provided yearly estimates in a range of $0.63 being high and $0.05 being low. For GATO, this leads to a yearly average estimate of $0.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Gatos Silver Inc. surprised analysts by $0.01 when it reported $0.10 EPS against a consensus estimate of $0.09. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.12.

Summary of Insider Activity:

Insiders traded GATO stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 0 while 0 shares were sold.

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