Adversity is less terrifying than hope: First Majestic Silver Corp. (AG)

First Majestic Silver Corp. (NYSE: AG) stock jumped 1.77% on Tuesday to $8.05 against a previous-day closing price of $7.91. With 5.12 million shares changed hands, the volume of the stock remained lighter than its average volume of 6.32 million shares. During the session, the Silver company that operates in wider Basic Materials sector, reached to the highest price of $8.10 whereas the lowest price it dropped to was $7.76. The 52-week range on AG shows that it touched its highest point at $14.59 and its lowest point at $6.31 during that stretch. It currently has a 1-year price target of $10.65.

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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 AG was down-trending over the past week, with a drop of -5.74%, but this was down by -7.36% over a month. Three-month performance dropped to -4.73% while six-month performance rose 23.09%. The stock lost -26.75% in the past year, while it has lost -3.48% so far this year. A look at the trailing 12-month EPS for AG yields 0.00 with Next year EPS estimates of 0.29. For the next quarter, that number is 0.00. This implies an EPS growth rate of -850.00% for this year and 293.30% for next year. EPS is expected to grow by 46.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -33.08%.

Float and Shares Shorts:

At present, 272.58 million AG shares are outstanding with a float of 239.66 million shares on hand for trading. On Oct 13, 2022, short shares totaled 17.29 million, which was 6.58% higher than short shares on Sep 14, 2022. In addition to Mr. Keith N. Neumeyer as the firm’s Founder, Pres, CEO & Director, Mr. Steven C. Holmes serves as its Chief Operating Officer.

Institutional Ownership:

Through their ownership of 34.85% of AG’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.96% of AG, in contrast to 27.31% held by mutual funds. Shares owned by individuals account for 0.05%. As the largest shareholder in AG with 9.89% of the stake, Van Eck Associates Corp. holds 25,980,114 shares worth 25,980,114. A second-largest stockholder of AG, ETF Managers Group LLC, holds 9,986,328 shares, controlling over 3.80% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in AG, holding 5,667,734 shares or 2.16% stake. With a 5.20% stake in AG, the VanEck Gold Miners ETF is the largest stakeholder. A total of 13,661,319 shares are owned by the mutual fund manager. The ETFMG Prime Junior Silver ETF, which owns about 4.27% of AG stock, is the second-largest Mutual Fund holder. It holds 11,223,769 shares valued at 93.61 million. VanEck Junior Gold Miners ETF holds 3.93% of the stake in AG, owning 10,313,105 shares worth 86.01 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AG since 6 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 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 AG analysts setting a high price target of $12.00 and a low target of $6.70, the average target price over the next 12 months is $9.43. Based on these targets, AG could surge 49.07% to reach the target high and fall by -16.77% to reach the target low. Reaching the average price target will result in a growth of 17.14% 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. AG will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$0.08 being high and -$0.30 being low. For AG, this leads to a yearly average estimate of -$0.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. First Majestic Silver Corp. surprised analysts by -$0.07 when it reported -$0.09 EPS against a consensus estimate of -$0.02. The surprise factor in the prior quarter was -$0.02. The average estimate for the next quarter is thus -$0.03.

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