Time To Be Bullish Or Bearish On Pretium Resources Inc. (PVG)?

Analysts at CIBC cut their rating on shares of Pretium Resources Inc. (NYSE:PVG) from Sector Outperform to Neutral in their opinion released on January 25. H.C. Wainwright analysts again handed out a Buy rating to PVG stock but they lifted target price for the shares in a flash note to investors on January 24. The price target has been raised from $16.50 to $15. H.C. Wainwright, analysts launched coverage of PVG stock with a Buy rating, according to their flash note to investors on January 24. Analysts at Credit Suisse downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to January 23.

Pretium Resources Inc. (PVG) is expected to jump by 95.14 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $27.81-month high price target. This represents a whopping 297.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16.5, which represents a return potential of 135.71 percent when compared to the closing price of the stock of $7 on Friday, January 11. The lowest price target for the stock is $11 — slightly more than 57.14 percent from PVG’s current share price.

The shares are currently floating around the first support level of $6.83. Below this, the next support is placed in the zone of $6.66. Till the time, the PVG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 36.65 on daily chart, which may remain a cause for comfort. If the price breaks below $6.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $7.32 mark may result into a pull-back move towards $7.63 level.

PVG shares dropped -0.3 points or -4.11 percent on Friday to $7 with a heavy trade volume of 5.828 million shares. After opening the session at $7.37, the shares went as high as $7.465 and as low as $6.98, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.28 billion and now has 183.46 million shares outstanding. Pretium Resources Inc. (PVG) stock has lost -1.82 percent of market value in 21 trading days.

PVG stock has a trailing 3-year beta of 0, 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 $0.17 a share in the trailing twelve months. The stock’s value has fallen -17.16 percent year to date (YTD) against a decline of -34.52 percent in 12 month’s time. The company’s shares still trade -40.07 percent away from its 1-year high of $11.68 and 13.45 percent up from 52-week low of $6.17. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Pretium Resources Inc. (PVG) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PVG operates in has an average P/E of 16.88. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 2.83 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3928.63. 0 percent is the gross profit margin for Pretium Resources Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.