Yamana Gold Inc. (AUY) Shares: Cheap or Risky?

Yamana Gold Inc. (NYSE:AUY) saw an upside of 0.53% to close Tuesday at $5.72 after adding $0.03 on the day. The 5-day average trading volume is 14,736,060 shares of the company’s common stock. It has gained $6.20 in the past week and touched a new high 1 time within the past 5 days. An average of 12,422,985 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 13,602,756.

AUY’s 1-month performance is -3.05% or -$0.18 on its low of $5.65 reached on 02/06/23. The company’s shares have touched a 52-week low of $3.88 and high of $6.40, with the stock’s rally to the 52-week high happening on 01/25/23. YTD, AUY has achieved 3.06% or $0.17 and has reached a new high 11 times. However, the current price is down -10.63% from the 52-week high price.

Valuation Metrics

AUY stock has a beta of 1.18. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.12 while the price-to-book (PB) in the most recent quarter is 1.25, with the price to cash flow ratio at 36.18.

Yamana Gold Inc.’s quick ratio for the period ended September 29 was 1.50, with the current ratio over the same period at 2.00. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.18, while the total debt to equity was 0.20.. In terms of profitability, the gross margin trailing 12 months is 59.60%. The firm’s gross profit as reported stood at $1.12 billion against revenue of $1.82 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 226.15% to $225.6 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected AUY to announce $0.04 per share in earnings in its latest quarter, but it posted $0.05, representing a 25.00% surprise. EBITDA for the quarter stood at more than $162.0 million. AUY stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 3.18 billion, with total debt at $773.9 million.

Let’s look briefly at Yamana Gold Inc. (AUY) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 07 February was 35.39% to suggest the stock is trending Neutral, with historical volatility in this time period at 27.92%.

The stock’s 5-day moving average is $5.86, reflecting a -5.14% or -$0.31 change from its current price. AUY is currently trading -2.22% above its 20-day SMA, +28.83% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +7.12% and SMA200 by-5.45%.

Stochastic %K and %D was 7.77% and 17.62% and the average true range (ATR) pointed at 0.17. The RSI (14) points at 42.73%, while the 14-day stochastic is at 11.48% with the period’s ATR at 0.17. The stock’s 9-day MACD Oscillator is pointing at -0.24 and -0.31 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Yamana Gold Inc. (NYSE: AUY), BofA Securities upgraded it to a Buy rating. They previously had a Neutral rating on the stock. Analysts offering their rating for AUY stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate AUY as a “sell,”, while 6 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $5.26 and a high of $8.02, with their median price target at $6.10. Looking at these predictions, the average price target given by analysts is for Yamana Gold Inc. (AUY) stock is $6.23.

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