Is Buying Stock In Equinox Gold Corp. (EQX) A Good Move Today?

Equinox Gold Corp. (AMEX:EQX) saw an upside of 0.86% to $4.09 after adding $0.04 on Tuesday. The 5-day average trading volume is 1,853,105 shares of the company’s common stock. It has gained $4.32 in the past week and touched a new high 2 times within the past 5 days. An average of 2,252,371 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,106,705.

EQX’s 1-month performance is -19.32% or -$1.12 on its low of $3.75 reached on 07/15/22. The company’s shares have touched a 52-week low of $3.75 and high of $9.07, with the stock’s rally to the 52-week high happening on 04/18/22. YTD, EQX has lost -40.09% or -$2.71 and has reached a new high 17 times. However, the current price is down -54.96% from the 52-week high price.

Valuation Metrics

EQX stock has a beta of 0.87. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.15 while the price-to-book (PB) in the most recent quarter is 0.48.

Equinox Gold Corp.’s quick ratio for the period ended December 30 was 2.20, with the current ratio over the same period at 2.80. As well, the company’s long term debt to equity for the quarter ending December 30 was 0.20, while the total debt to equity was 0.21. In terms of profitability, the gross margin trailing 12 months is 38.60%. The firm’s gross profit as reported stood at $230.59 million against revenue of $1.08 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected EQX to announce $0.17 per share in earnings in its latest quarter, but it posted $0.22, representing a 29.40% surprise. EBITDA for the quarter stood at more than $55.67 million. EQX stock balance sheet for the quarter ending December 30 shows that total liabilities totaled 1.31 billion, with total debt at $579.64 million.

Let’s look briefly at Equinox Gold Corp. (EQX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 25 July was 38.58% to suggest the stock is trending Neutral, with historical volatility in this time period at 53.50%.

The stock’s 5-day moving average is $4.06, reflecting a -2.99% or -$0.13 change from its current price. EQX is currently trading -20.33% above its 20-day SMA, -47.13% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -24.21% and SMA200 by-44.68%.

Stochastic %K and %D was 38.32% and 36.12% and the average true range (ATR) pointed at 0.24. The RSI (14) points at 36.54%, while the 14-day stochastic is at 38.61% with the period’s ATR at 0.26. The stock’s 9-day MACD Oscillator is pointing at 0.03 and -0.05 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Equinox Gold Corp. (AMEX: EQX), Desjardins downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for EQX stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate EQX as a “sell,”, while 4 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 7 have offered a “buy” rating.

What is EQX’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $4.46 and a high of $10.18, with their median price target at $8.42. Looking at these predictions, the average price target given by analysts is for Equinox Gold Corp. (EQX) stock is $8.25.

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