Few Indicators Flashing Warning Signs for IAMGOLD Corporation (IAG)

Let’s reassess the active stocks with an eye toward IAG stock. Just how should we respond to Tuesday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 12 February, shares of IAMGOLD Corporation (NYSE:IAG) closed lower after a volatile session. The shares dropped -0.07 points or -2 percent at $3.43 with a light trade volume of 4.212 million shares. After opening the session at $3.55, the shares went as high as $3.55 and as low as $3.42, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.61 billion and now has 470.77 million shares outstanding. IAMGOLD Corporation (IAG) stock has lost -5.77 percent of market value in 21 trading days.

IAG stock has a trailing 3-year beta of -0.29, 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 -6.79 percent year to date (YTD) against a decline of -34.79 percent in 12 month’s time. The company’s shares still trade -45.81 percent away from its 1-year high of $6.33 and 24.73 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.

IAMGOLD Corporation (IAG) will probably climb 123.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $7.62 price as 12-month high target. This represents a whopping 122.16 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $5, which represents a return potential of 45.77 percent when compared to the closing price of the stock of $3.43 on Tuesday, February 12. The lowest price target for the stock is $4 — slightly more than 16.62 percent from IAG’s current share price.

History has shown that shares in IAMGOLD Corporation have gone down on 21 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. Investors will get their next glimpse of IAG’s Q4 earnings on February 20. Analysts are forecasting revenue to climb 15.6 percent to $301M in the fiscal fourth quarter, while earnings are seen soaring by nearly 0 percent to $0.01 per share. It earned -$0.03 per share, worse than the $0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $245M, worse than the $266M analysts expected. Earnings are estimated to increase by 764.6 percent this year, -30.43 percent next year and continue to increase by 8.31 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $3.38. Below this, the next support is placed in the zone of $3.34. Till the time, the IAG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.11 on daily chart, which may remain a cause for concern. If the price breaks below $3.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.51 mark may result into a pull-back move towards $3.6 level.

Further, it is sporting a 1.43 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.19. 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.