Is Yamana Gold Inc. (AUY) A Risky Investment?

Yamana Gold Inc. (NYSE:AUY) finished Wednesday with an addition of $0.2 to close at $5.46, an upside of 3.80 percent. An average of 14,971,400 shares of common stock have been traded in the last five days. There was a gain of $0.19 in the past week, and it reached a new high 23 times over the past 12 months. The last 20 days have seen an average of 31,924,600 shares traded, while the 50-day average volume stands at 22,762,859.

AUY stock has increased by 24.66% in the last month. The company shares reached their 1-month lowest point of $4.04 on 11/03/22. With the stock rallying to its 52-week high on 04/18/22, shares of the company touched a low of $3.70 and a high of $6.40 in 52 weeks. It has reached a new high 21 times so far this year and achieved 29.38% or $1.24 in price. In spite of this, the price is down -14.69% from the 52-week high.

Valuation Metrics

Yamana Gold Inc. (AUY) has a trailing price-to-earnings (P/E) ratio of 20.22. The stock’s beta is 1.22. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.77, the price-to-book (PB) ratio at 1.19, and the price-to-cash flow ratio at 32.10.

The company has a payout ratio of 44.40%. The company’s most recent quarterly dividend payment was $0.03 a share, without any change from last year. Its latest increase dividend $0.0038 reported on Monday August 2 2021.

Financial Health

The quick ratio of Yamana Gold Inc. for the three months ended September 29 was 1.50, and the current ratio was 2.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.18 and a total debt to equity ratio of 0.20 for the quarter ending September 29. Its gross profit as reported stood at $1.12 billion compared to revenue of $1.82 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Yamana Gold Inc.’s return on assets was 3.10%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $225.6 million in the quarter, while revenues were grew 226.15%. The analyst consensus anticipated Yamana Gold Inc.’s latest quarter earnings to come in at $0.04 per share, but it turned out to be $0.05, a 25.00% surprise. For the quarter, EBITDA amounted to $162.0 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Yamana Gold Inc. (AUY) price momentum. RSI 9-day as of the close on 30 November was 68.91%, suggesting the stock is Neutral, with historical volatility in this time frame at 33.56%.

As of today, AUY’s price is $5.30 +3.61% or $0.19 from its 5-day moving average. AUY is currently trading +23.81% higher than its 20-day SMA and +13.51% higher than its 100-day SMA. However, the stock’s current price level is +29.38% above the SMA50 and +21.88% above the SMA200.

The stochastic %K and %D were 82.06% and 82.75%, respectively, and the average true range (ATR) was 0.19. With the 14-day stochastic at 94.03% and the average true range at 0.20, the RSI (14) stands at 65.03%. The stock has reached 0.08 on the 9-day MACD Oscillator while the 14-day reading was at 0.14.

Analyst Ratings

BofA Securities upgraded Yamana Gold Inc. (NYSE: AUY) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Yamana Gold Inc. (AUY) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell AUY, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

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

Analysts predict a range of price targets between $5.00 and $8.10, with a median target of $5.69. Taking a look at these predictions, the average price target given by analysts for Yamana Gold Inc. (AUY) stock is $5.97.

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