Stock on Demand This Week: Pan American Silver Corp. (PAAS)

Pan American Silver Corp. (NYSE:PAAS) saw a downside of -0.47% to close Friday at $14.91 after subtracting -$0.07 on the day. The 5-day average trading volume is 3,558,540 shares of the company’s common stock. It has gained $15.87 in the past week and touched a new high 3 times within the past 5 days. An average of 4,183,320 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,977,488.

PAAS’s 1-month performance is -15.38% or -$2.04 on its low of $14.81 reached on 05/26/23. The company’s shares have touched a 52-week low of $13.40 and high of $24.20, with the stock’s rally to the 52-week high happening on 04/13/23. YTD, PAAS has lost -8.75% or -$1.43 and has reached a new high 12 times. However, the current price is down -38.38% from the 52-week high price.

Valuation Metrics

PAAS stock has a beta of 1.22. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.78 while the price-to-book (PB) in the most recent quarter is 0.63.

Pan American Silver Corp.’s quick ratio for the period ended March 30 was 1.20, with the current ratio over the same period at 2.30. As well, the company’s long term debt to equity for the quarter ending March 30 was 0.22, while the total debt to equity was 0.24. In terms of profitability, the gross margin trailing 12 months is 4.10%. The trailing 12-month EBITDA margin is 17.55% while for the period ending March 30, Pan American Silver Corp.’s operating margin was -22.50%. The firm’s gross profit as reported stood at $355.16 million against revenue of $1.49 billion.

Earnings Surprise

For the quarterly period ending March 30 this year, Pan American Silver Corp.’s cash and short-term investments amounted to $17.21 million against total debt of $1.21 billion. Net income and sales went up 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 $0.02 per share in earnings in its latest quarter, but it posted $0.1, representing a 400.00% surprise. EBITDA for the quarter stood at more than $97.5 million. PAAS stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 3.62 billion, with total debt at $1.21 billion.

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 26 May was 22.30% to suggest the stock is trending oversold, with historical volatility in this time period at 26.43%.

The stock’s 5-day moving average is $15.32, reflecting a -5.21% or -$0.82 change from its current price. PAAS is currently trading -16.28% above its 20-day SMA, -13.16% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -9.42% and SMA200 by-29.27%.

Stochastic %K and %D was 6.77% and 7.23% and the average true range (ATR) pointed at 0.57. The RSI (14) points at 28.17%, while the 14-day stochastic is at 2.86% with the period’s ATR at 0.60. The stock’s 9-day MACD Oscillator is pointing at -0.54 and -1.06 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for PAAS stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate PAAS as a “sell,”, while 0 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 8 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $21.00 and a high of $30.00, with their median price target at $24.23. Looking at these predictions, the average price target given by analysts is for Pan American Silver Corp. (PAAS) stock is $24.43.

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