Technicals Say Fortuna Silver Mines Inc. (FSM) Is Worth Holding

As of Friday close, Fortuna Silver Mines Inc.’s (NYSE:FSM) stock was down -$0.06, moving down -1.63 percent to $3.63. The average number of shares traded per day over the past five days has been 3,379,420 shares. 3 times new highs have been achieved over the past 5 days, with a $0.19 gain in that time frame. In the last twenty days, the average volume was 4,755,710, while in the previous 50 days, it was 5,079,796.

Since last month, FSM stock rose 24.32%. Shares of the company fell to $2.57 on 11/03/22, the lowest level in the past month. A 52-week high of $4.68 was reached on 03/08/22 after having rallying from a 52-week low of $2.05. Since the beginning of this year, FSM’s stock price has dropped by -6.92% or -$0.27, and marked a new high 7 times. However, the stock has declined by -22.35% since its 52-week high.

Valuation Metrics

Right now, Fortuna Silver Mines Inc. (FSM) has a P/E ratio of about 30.25. Besides these, the trailing price-to-sales (P/S) ratio of 1.47, the price-to-book (PB) ratio of 0.76.

Financial Health

Based on annual data, FSM earned $136.88 million in gross profit and brought in $599.85 million in revenue.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. FSM’s revenue fell -2.38% during the quarter, while net income inched up to $257.19 million. While analysts expected Fortuna Silver Mines Inc. to report $0.03 quarterly earnings, the actual figure was $0.01 per share, beating the consensus estimate by -66.70%. During the quarter, the company generated $52.56 million in EBITDA. The liabilities of Fortuna Silver Mines Inc. were 592.75 million at the end of its most recent quarter ended September 29, and its total debt was $228.25 million.

Technical Picture

This quick technical analysis looks at Fortuna Silver Mines Inc.’s (FSM) price momentum. With a historical volatility rate of 42.36%, the RSI 9-day stood at 67.59% on 25 November.

With respect to its five-day moving average, the current Fortuna Silver Mines Inc. price is up by +5.52% percent or $0.19. At present, FSM shares trade +26.92% above its 20-day simple moving average and +38.55% percent above its 100-day simple moving average. However, the stock is currently trading approximately +56.47% above its SMA50 and +4.31% above its SMA200.

Stochastic coefficient K was 97.44% and Stochastic coefficient D was 96.61%, while ATR was 0.17. Given the Stochastic reading of 92.31% for the 14-day period, the RSI (14) reading has been calculated as 66.20%. As of today, the MACD Oscillator reading stands at 0.12, while the 14-day reading stands at 0.23.

Analyst Ratings

Canaccord Genuity upgraded its rating on Fortuna Silver Mines Inc. (NYSE: FSM) to a Buy in a note to investors on January 18, 2022. The analysts firm previously had a Hold rating on the stock.Fortuna Silver Mines Inc. (FSM) has been rated Overweight by analysts. According to 0 brokerage firms, FSM is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Fortuna Silver Mines Inc. stock as buy, with 4 recommending it as overweight.

With a median target price of $4.12, the current consensus forecast for the stock is $3.75 – $4.50. Based on these forecasts, analysts predict Fortuna Silver Mines Inc. (FSM) will achieve an average price target of $4.10.

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