Why I’m Kicking Myself For Missing Out On Yamana Gold Inc. (AUY)?

The exact reason why investors have been taking up Yamana Gold Inc. (NYSE:AUY) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 06 December, the shares accumulated 0.03 points or 1.39 percent at $2.19 with a light trade volume of 11.44 million shares. After opening the session at $2.17, the shares went as high as $2.2 and as low as $2.14, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.08 billion and now has 951.63 million shares outstanding. Yamana Gold Inc. (AUY) stock has lost -9.13 percent of market value in 21 trading days.

AUY stock has a trailing 3-year beta of 1.04, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.44 a share in the trailing twelve months. The stock’s value has fallen -29.81 percent year to date (YTD) against a decline of -12.4 percent in 12 month’s time. The company’s shares still trade -42.37 percent away from its 1-year high of $3.80 and 9.5 percent up from 52-week low of $2.00. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Yamana Gold Inc. (AUY) will probably climb 79 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $4.19-month high price target. This represents a whopping 91.32 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $3.47, which represents a return potential of 58.45 percent when compared to the closing price of the stock of $2.19 on Thursday, December 06. The lowest price target for the stock is $2.28 — slightly more than 4.11 percent from AUY’s current share price.

History has shown that shares in Yamana Gold Inc. have gone up on 17 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $2.15. Below this, the next support is placed in the zone of $2.12. Till the time, the AUY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.06 on daily chart, which may remain a cause for concern. If the price breaks below $2.12 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $2.21 mark may result into a pull-back move towards $2.24 level.

Further, it is sporting a 1.17 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3947.24. 44.2 percent is the gross profit margin for Yamana Gold Inc. and operating margin sits at -21 percent. Along with this, the net profit margin is -23.7 percent.