IAMGOLD Corporation (IAG) Seeing Some Undeniable Momentum

Analysts at Credit Suisse upped their rating on shares of IAMGOLD Corporation (NYSE:IAG) from Neutral to Outperform in their opinion released on December 19. Desjardins analysts have downgraded their rating of IAG stock from Buy to Hold in a separate flash note to investors on June 07. Analysts at BofA/Merrill issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to April 13.

IAMGOLD Corporation (IAG) is expected to jump by 110.16 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $7.94-month high price target. This represents a whopping 118.13 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $6.01, which represents a return potential of 65.11 percent when compared to the closing price of the stock of $3.64 on Friday, January 11. The lowest price target for the stock is $4.43 — slightly more than 21.7 percent from IAG’s current share price.

The shares are currently floating around the first support level of $3.58. Below this, the next support is placed in the zone of $3.52. Till the time, the IAG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.45 on daily chart, which may remain a cause for concern. If the price breaks below $3.52 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.73 mark may result into a pull-back move towards $3.82 level.

IAG shares dropped -0.06 points or -1.62 percent on Friday to $3.64 with a heavy trade volume of 5.597 million shares. After opening the session at $3.75, the shares went as high as $3.76 and as low as $3.61, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.73 billion and now has 476.62 million shares outstanding. IAMGOLD Corporation (IAG) stock has gained 11.66 percent of market value in 21 trading days.

IAG stock has a trailing 3-year beta of -0.33, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.03 a share in the trailing twelve months. The stock’s value has fallen -1.09 percent year to date (YTD) against a decline of -37.02 percent in 12 month’s time. The company’s shares still trade -44.17 percent away from its 1-year high of $6.52 and 32.36 percent up from 52-week low of $2.75. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of IAMGOLD Corporation (IAG) are trading at a P/E ratio of 5.73 times earnings reported for the past 12 months. The industry IAG operates in has an average P/E of 2.05. Its P/E ratio went as low as 12.93X and as high as 31.14 over the 5-year span. Further, it is sporting a 1.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.75. 13.7 percent is the gross profit margin for IAMGOLD Corporation and operating margin sits at 4.9 percent. Along with this, the net profit margin is -1 percent.