Is Wheaton Precious Metals Corp. (WPM) A Risky Investment?

Wheaton Precious Metals Corp. (NYSE:WPM) finished Thursday with a subtraction of -$1.4 to close at $47.85, a downside of -2.84 percent. An average of 1,557,500 shares of common stock have been traded in the last five days. There was a fall of -$2.37 in the past week, and it reached a new high 28 times over the past 12 months. The last 20 days have seen an average of 1,860,315 shares traded, while the 50-day average volume stands at 2,426,468.

WPM stock has decreased by -2.70% in the last month. The company shares reached their 1-month lowest point of $46.97 on 05/18/23. With the stock rallying to its 52-week high on 04/13/23, shares of the company touched a low of $28.62 and a high of $52.76 in 52 weeks. It has reached a new high 25 times so far this year and achieved 22.44% or $8.77 in price. In spite of this, the price is down -9.31% from the 52-week high.

Valuation Metrics

Wheaton Precious Metals Corp. (WPM) has a trailing price-to-earnings (P/E) ratio of 34.75. The stock’s beta is 0.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 22.42, the price-to-book (PB) ratio at 3.18.

The company has a payout ratio of 43.50%. The company’s most recent quarterly dividend payment was $0.15 a share, without any change from last year. Its latest increase dividend $0.01 reported on Monday August 16 2021.

Financial Health

The quick ratio of Wheaton Precious Metals Corp. for the three months ended March 30 was 9.50, and the current ratio was 9.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending March 30. Wheaton Precious Metals Corp.’s EBITDA margin for the year ending March 30 is 69.77%, while its operating margin for the same period stands at 46.40%. Its gross profit as reported stood at $565.48 million compared to revenue of $1.07 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Wheaton Precious Metals Corp.’s return on assets was 9.30%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $86.14 million in the quarter, while revenues were shrunk -395.84%. The analyst consensus anticipated Wheaton Precious Metals Corp.’s latest quarter earnings to come in at $0.25 per share, but it turned out to be $0.23, a -8.00% surprise. For the quarter, EBITDA amounted to $144.02 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Wheaton Precious Metals Corp. (WPM) price momentum. RSI 9-day as of the close on A Thursday was 30.91%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.54%.

As of today, WPM’s price is $49.57 -4.72% or -$2.37 from its 5-day moving average. WPM is currently trading -3.08% lower than its 20-day SMA and +20.23% higher than its 100-day SMA. However, the stock’s current price level is +23.58% above the SMA50 and +42.37% above the SMA200.

The stochastic %K and %D were 22.37% and 35.39%, respectively, and the average true range (ATR) was 1.42. With the 14-day stochastic at 15.69% and the average true range at 1.40, the RSI (14) stands at 39.76%. The stock has reached -1.50 on the 9-day MACD Oscillator while the 14-day reading was at -1.64.

Analyst Ratings

Goldman downgraded Wheaton Precious Metals Corp. (NYSE: WPM) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Wheaton Precious Metals Corp. (WPM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell WPM, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 13 others rate it as a “buy”.

What is WPM’s price target for the next 12 months?

Analysts predict a range of price targets between $43.00 and $62.00, with a median target of $56.70. Taking a look at these predictions, the average price target given by analysts for Wheaton Precious Metals Corp. (WPM) stock is $55.44.

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