First Majestic Silver Corp. (AG) Maybe More Attractive Than It Looks

Considering all key technical indicators, a 56.% Sell signal has occurred for First Majestic Silver Corp. (NYSE:AG). The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the AG’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 3337865 shares. AG stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 3000920 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $5.05. Below this, the next support is placed in the zone of $4.94. Till the time, the AG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 37.11 on daily chart, which may remain a cause for comfort. If the price breaks below $4.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $5.27 mark may result into a pull-back move towards $5.38 level.

First Majestic Silver Corp. (AG) is projected to climb by 85.24 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $9.05price as 12-month high target. This represents a whopping 75.73 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $7.5, which represents a return potential of 45.63 percent when compared to the closing price of the stock of $5.15 on Friday, January 18. The lowest price target for the stock is $6.22 — slightly more than 20.78 percent from AG’s current share price.

AG shares dropped -0.1 points or -1.9 percent on Monday to $5.15 with a heavy trade volume of 3.895 million shares. After opening the session at $5.16, the shares went as high as $5.28 and as low as $5.06, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $997 million and now has 193.57 million shares outstanding. First Majestic Silver Corp. (AG) stock has lost -9.81 percent of market value in 21 trading days.

Analysts at TD Securities upped their rating on shares of First Majestic Silver Corp. (NYSE:AG) from Hold to Buy in their opinion released on May 15.

AG 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 -$0.54 a share in the trailing twelve months. The stock’s value has fallen -12.56 percent year to date (YTD) against a decline of -25.58 percent in 12 month’s time. The company’s shares still trade -39.27 percent away from its 1-year high of $8.48 and 12.2 percent up from 52-week low of $4.59. The average consensus rating on the company is 2.3, 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 First Majestic Silver Corp. (AG) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AG operates in has an average P/E of 12.51. Its P/E ratio went as low as 145.91X and as high as 145.91 over the 5-year span. Further, it is sporting a 3.46 on the Price-to-Sales ratio. Compare this with the industry average P/S of 10.96. 0 percent is the gross profit margin for First Majestic Silver Corp. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

AG will be declaring its Q4 financial results on February 25. Analysts are forecasting revenue to suffer decline of -0.3 percent to $66M in the next fiscal quarter, while earnings are seen soaring by nearly 100 percent to -$0.02 per share. History has shown that shares in First Majestic Silver Corp. have gone up on 7 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0 per share, worse than the $0.01, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $88.5M, worse than the $91M analysts expected. Earnings are estimated to increase by 250 percent this year, 16.7 percent next year and continue to increase by 46.8 percent annually for the next 5 years.