A Technical View of the Pan American Silver Corp. (PAAS)

Pan American Silver Corp. (NASDAQ:PAAS) saw an upside of 1.12% to close Tuesday at $19.01 after adding $0.21 on the day. The 5-day average trading volume is 3,332,300 shares of the company’s common stock. It has gained $19.20 in the past week and touched a new high 1 time within the past 5 days. An average of 3,522,705 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,159,510.

PAAS’s 1-month performance is 12.95% or $2.20 on its low of $16.19 reached on 12/30/22. The company’s shares have touched a 52-week low of $13.40 and high of $30.51, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, PAAS has achieved 16.34% or $2.67 and has reached a new high 8 times. However, the current price is down -37.70% from the 52-week high price.

Valuation Metrics

PAAS stock has a beta of 1.14. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.52 while the price-to-book (PB) in the most recent quarter is 1.70.

Pan American Silver Corp.’s quick ratio for the period ended June 29 was 1.00, with the current ratio over the same period at 2.10. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.02, while the total debt to equity was 0.03.. In terms of profitability, the gross margin trailing 12 months is 5.80%. The firm’s gross profit as reported stood at $675.49 million against revenue of $1.63 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Pan American Silver Corp.’s cash and short-term investments amounted to $17.21 million against total debt of $84.01 million. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 90.71% to $110.74 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected PAAS to announce $0.34 per share in earnings in its latest quarter, but it posted $0.22, representing a -35.30% surprise. EBITDA for the quarter stood at more than $33.97 million. PAAS stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 836.52 million, with total debt at $84.01 million.

Let’s look briefly at Pan American Silver Corp. (PAAS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 65.79% to suggest the stock is trending Neutral, with historical volatility in this time period at 25.60%.

The stock’s 5-day moving average is $18.73, reflecting a +3.37% or $0.62 change from its current price. PAAS is currently trading +13.76% above its 20-day SMA, +25.40% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +39.37% and SMA200 by-30.32%.

Stochastic %K and %D was 90.57% and 85.83% and the average true range (ATR) pointed at 0.71. The RSI (14) points at 63.70%, while the 14-day stochastic is at 92.10% with the period’s ATR at 0.72. The stock’s 9-day MACD Oscillator is pointing at 0.34 and 0.65 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Pan American Silver Corp. (NASDAQ: PAAS), RBC Capital Mkts upgraded it to an Outperform rating. They previously had a Sector perform rating on the stock.

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