What Are The Risk Factors For Yamana Gold Inc. (AUY)?

As of Thursday close, Yamana Gold Inc.’s (NYSE:AUY) stock was down -$0.02, moving down -0.34 percent to $5.89. The average number of shares traded per day over the past five days has been 18,070,020 shares. 4 times new highs have been achieved over the past 5 days, with a $0.08 gain in that time frame. In the last twenty days, the average volume was 16,130,785, while in the previous 50 days, it was 12,988,254.

Since last month, AUY stock rose 12.84%. Shares of the company fell to $5.07 on 03/08/23, the lowest level in the past month. A 52-week high of $6.40 was reached on 01/25/23 after having rallying from a 52-week low of $3.88. Since the beginning of this year, AUY’s stock price has risen by 6.13% or $0.34, and marked a new high 11 times. However, the stock has declined by -7.97% since its 52-week high.

Valuation Metrics

Right now, Yamana Gold Inc. (AUY) has a P/E ratio of about 21.81. The stock’s beta is 1.19. Besides these, the trailing price-to-sales (P/S) ratio of 3.02, the price-to-book (PB) ratio of 1.29, and the price-to-cash flow ratio of 35.08 may also be considered.

The latest dividend of $0.03 per share was paid out, remained unchanged from last year’s $0.03. On Monday August 2 2021, a $0.0038 dividend increase was announced.

Financial Health

In the three months ended September 29, Yamana Gold Inc.’s quick ratio stood at 1.50, while its current ratio was 2.00, 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 September 29 was 0.18, and the total debt-to-equity ratio was 0.20. On the profitability front, the trailing twelve-month gross margin is 59.60% percent. In the year ended September 29, EBITDA margin amounted to 54.53%, whereas operating margins totaled 23.30%. Based on annual data, AUY earned $1.12 billion in gross profit and brought in $1.82 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 2.70%. Return on equity (ROE) for the past 12 months was 5.90%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AUY’s revenue fell -11.56% during the quarter, while net income inched up to $1.61 billion. While analysts expected Yamana Gold Inc. to report $0.04 quarterly earnings, the actual figure was $0.05 per share, beating the consensus estimate by 25.00%. During the quarter, the company generated $162.0 million in EBITDA. The liabilities of Yamana Gold Inc. were 3.18 billion at the end of its most recent quarter ended September 29, and its total debt was $773.9 million.

Technical Picture

This quick technical analysis looks at Yamana Gold Inc.’s (AUY) price momentum. With a historical volatility rate of 23.83%, the RSI 9-day stood at 65.69% on 30 March.

With respect to its five-day moving average, the current Yamana Gold Inc. price is up by +1.38% percent or $0.08. At present, AUY shares trade +12.40% above its 20-day simple moving average and +44.36% percent above its 100-day simple moving average. However, the stock is currently trading approximately -0.67% below its SMA50 and +12.40% above its SMA200.

Stochastic coefficient K was 92.51% and Stochastic coefficient D was 93.81%, while ATR was 0.16. Given the Stochastic reading of 86.34% for the 14-day period, the RSI (14) reading has been calculated as 62.33%. As of today, the MACD Oscillator reading stands at 0.09, while the 14-day reading stands at 0.18.

Analyst Ratings

BofA Securities upgraded its rating on Yamana Gold Inc. (NYSE: AUY) to a Buy in a note to investors on November 22, 2021. The analysts firm previously had a Neutral rating on the stock.Yamana Gold Inc. (AUY) has been rated Hold by analysts. According to 2 brokerage firms, AUY is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Yamana Gold Inc. stock as buy, with 2 recommending it as overweight.

With a median target price of $6.00, the current consensus forecast for the stock is $5.50 – $8.05. Based on these forecasts, analysts predict Yamana Gold Inc. (AUY) will achieve an average price target of $6.24.

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