Technicals Say Equinox Gold Corp. (EQX) Is Worth Holding

As of Wednesday close, Equinox Gold Corp.’s (AMEX:EQX) stock traded at $3.38. The average number of shares traded per day over the past five days has been 2,533,000 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.61 fall in that time frame. In the last twenty days, the average volume was 2,600,765, while in the previous 50 days, it was 2,148,862.

Since last month, EQX stock retreated -3.98%. Shares of the company fell to $2.90 on 09/26/22, the lowest level in the past month. A 52-week high of $9.07 was reached on 04/18/22 after having rallying from a 52-week low of $2.90. Since the beginning of this year, EQX’s stock price has dropped by -50.00% or -$3.38, and marked a new high 17 times. However, the stock has declined by -62.73% since its 52-week high.

Valuation Metrics

Right now, Equinox Gold Corp. (EQX) has a P/E ratio of about 18.57. The stock’s beta is 0.85. Besides these, the trailing price-to-sales (P/S) ratio of 1.04, the price-to-book (PB) ratio of 0.43.

Financial Health

In the three months ended December 30, Equinox Gold Corp.’s quick ratio stood at 2.00, while its current ratio was 2.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.25, and the total debt-to-equity ratio was 0.26. On the profitability front, the trailing twelve-month gross margin is 35.70% percent. In the year ended December 30, operating margins totaled 17.50%. Based on annual data, EQX earned $230.59 million in gross profit and brought in $1.08 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.20%. Return on equity (ROE) for the past 12 months was 3.30%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. While analysts expected Equinox Gold Corp. to report $0.17 quarterly earnings, the actual figure was $0.22 per share, beating the consensus estimate by 29.40%. During the quarter, the company generated $33.9 million in EBITDA. The liabilities of Equinox Gold Corp. were 1.3 billion at the end of its most recent quarter ended December 30, and its total debt was $579.64 million.

Technical Picture

This quick technical analysis looks at Equinox Gold Corp.’s (EQX) price momentum. With a historical volatility rate of 69.28%, the RSI 9-day stood at 41.66% on 12 October.

With respect to its five-day moving average, the current Equinox Gold Corp. price is down by -15.29% percent or -$0.61. At present, EQX shares trade -3.70% below its 20-day simple moving average and -42.52% percent below its 100-day simple moving average. However, the stock is currently trading approximately -23.87% below its SMA50 and -49.25% below its SMA200.

Stochastic coefficient K was 40.68% and Stochastic coefficient D was 47.21%, while ATR was 0.24. Given the Stochastic reading of 38.78% for the 14-day period, the RSI (14) reading has been calculated as 44.06%. As of today, the MACD Oscillator reading stands at -0.28, while the 14-day reading stands at -0.14.

Analyst Ratings

Equinox Gold Corp. downgraded its rating on Equinox Gold Corp. (AMEX: EQX) to a Hold in a note to investors on January 26, 2022. The analysts firm previously had a Buy rating on the stock.

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