Could McEwen Mining Inc. (MUX) Be a Millionaire-Maker Stock?

Taking everything into account, McEwen Mining Inc. (NYSE:MUX) scores Hold on the technical side. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the MUX’s short-term trajectory should know that short terms indicators for the stock averaged 40% Buy with an average daily trading volume over the past 20 days at 2026380 shares. MUX stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 1989690 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 $1.78. Below this, the next support is placed in the zone of $1.74. Till the time, the MUX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.34 on daily chart, which may remain a cause for concern. If the price breaks below $1.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.85 mark may result into a pull-back move towards $1.88 level.

McEwen Mining Inc. (MUX) is projected to climb by 70.72 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $3.5price as 12-month high target. This represents a whopping 93.37 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2.93, which represents a return potential of 61.88 percent when compared to the closing price of the stock of $1.81 on Thursday, January 31. The lowest price target for the stock is $2.5 — slightly more than 38.12 percent from MUX’s current share price.

Here’s a rundown of insider trading activity for sense of McEwen Mining Inc. (NYSE:MUX). The earliest insider trade took place on 11/19/2018. Brissenden Richard W. parted with a total of 25 thousand shares of company at average share price of $1.8. The total for the sales was set at $45 thousand. After this transaction, the Director account balance stood at 30 thousand shares. The stock grew 0.56 percent since that insider sale. On 09/26/2018, Ashby Michele L, Director, purchased 5 thousand shares at a price per share of $1.91. This added 9.55 thousand shares to the insider’s fortune and the stock saw a -5.24 percent retreat in value since the news became public. This transaction left 67.5 thousand shares in the Director account. On 09/20/2018, President and COO Stewart Chris performed a purchase transaction worth $25 thousand. This purchase at $2.5 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -27.6 percent decrease since the transaction was reported. The insider now is left with 10 thousand shares remaining in the account. Ambrose Allen V, who performs the Director job, bought 19.23 thousand shares for $40 thousand. The acquisition occurred on 05/16/2018 was priced at $2.08 per share. The share price plunged -12.98 percent since the reporting date. Ambrose Allen V now left with a stake of 451.13 thousand MUX stock worth $816.55 thousand after the insider buying.

MUX shares accumulated 0.02 points or 1.12 percent on Thursday to $1.81 with a heavy trade volume of 2.867 million shares. After opening the session at $1.85, the shares went as high as $1.85 and as low as $1.78, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $595 million and now has 328.95 million shares outstanding. McEwen Mining Inc. (MUX) stock has lost -0.55 percent of market value in 21 trading days.

Analysts at ROTH Capital, assumed coverage of McEwen Mining Inc. (NYSE:MUX) with Buy recommendation, according to their opinion released on December 11.

MUX stock has a trailing 3-year beta of -0.71, 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 $0.02 a share in the trailing twelve months. The stock’s value has fallen -0.55 percent year to date (YTD) against a decline of -15.02 percent in 12 month’s time. The company’s shares still trade -28.17 percent away from its 1-year high of $2.52 and 12.07 percent up from 52-week low of $1.62. The average consensus rating on the company is 0, 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 McEwen Mining Inc. (MUX) are trading at a P/E ratio of 87.35 times earnings reported for the past 12 months. The industry MUX operates in has an average P/E of 11.32. Its P/E ratio went as low as 41.21X and as high as 41.53 over the 5-year span. Further, it is sporting a 4.7 on the Price-to-Sales ratio. Compare this with the industry average P/S of 12.72. 27.4 percent is the gross profit margin for McEwen Mining Inc. and operating margin sits at -29.6 percent. Along with this, the net profit margin is -17.1 percent.

MUX will be declaring its Q4 financial results on March 18. Analysts are forecasting revenue to suffer decline of -24.6 percent to $18.36M in the next fiscal quarter, while earnings are seen soaring by nearly -500 percent to -$0.04 per share. History has shown that shares in McEwen Mining Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.04 per share, worse than the -$0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $26.9M, better than the $25.53M analysts expected. Earnings are estimated to increase by -21 percent this year, 109.1 percent next year and continue to increase by 0 percent annually for the next 5 years.