Technicals Say Pan American Silver Corp. (PAAS) Is A Hold

Pan American Silver Corp. (NASDAQ:PAAS) finished Thursday with a subtraction of -$0.49 to close at $15.27, a downside of -3.11 percent. An average of 4,722,360 shares of common stock have been traded in the last five days. There was a fall of -$0.86 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 3,584,475 shares traded, while the 50-day average volume stands at 3,569,180.

PAAS stock has decreased by -19.67% in the last month. The company shares reached their 1-month lowest point of $15.07 on 02/23/23. With the stock rallying to its 52-week high on 01/26/23, shares of the company touched a low of $13.40 and a high of $30.51 in 52 weeks. It has reached a new high 10 times so far this year and lost -6.55% or -$1.07 in price. In spite of this, the price is down -49.96% from the 52-week high.

Valuation Metrics

Pan American Silver Corp. (PAAS) stock’s beta is 1.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.09, the price-to-book (PB) ratio at 1.36.

The company’s most recent quarterly dividend payment was $0.10 a share, representing a down of -16.67% from $0.12 last year. Its latest decrease dividend $0.02 reported on Wednesday November 9 2022.

Financial Health

The quick ratio of Pan American Silver Corp. for the three months ended September 29 was 1.00, and the current ratio was 2.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.03 for the quarter ending September 29. Its gross profit as reported stood at $355.16 million compared to revenue of $1.49 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, Pan American Silver Corp.’s return on assets was -4.60%.

Earnings Surprise

For the three-month period that ended September 29, Pan American Silver Corp. had $17.21 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $110.74 million in the quarter, while revenues were grew 90.71%. The analyst consensus anticipated Pan American Silver Corp.’s latest quarter earnings to come in at -$0.08 per share, but it turned out to be -$0.01, a 87.50% surprise. For the quarter, EBITDA amounted to -$118.45 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Pan American Silver Corp. (PAAS) price momentum. RSI 9-day as of the close on 23 February was 21.27%, suggesting the stock is oversold, with historical volatility in this time frame at 24.54%.

As of today, PAAS’s price is $15.83 -5.33% or -$0.86 from its 5-day moving average. PAAS is currently trading -20.22% lower than its 20-day SMA and -2.30% lower than its 100-day SMA. However, the stock’s current price level is -7.06% below the SMA50 and -37.26% below the SMA200.

The stochastic %K and %D were 4.92% and 7.68%, respectively, and the average true range (ATR) was 0.58. With the 14-day stochastic at 6.78% and the average true range at 0.61, the RSI (14) stands at 29.17%. The stock has reached -0.50 on the 9-day MACD Oscillator while the 14-day reading was at -0.80.

Analyst Ratings

RBC Capital Mkts upgraded Pan American Silver Corp. (NASDAQ: PAAS) to a an Outperform rating in its most recent analyst report. Previously, the stock was rated as a Sector perform. The consensus rating for Pan American Silver Corp. (PAAS) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PAAS, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.

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