Pan American Silver Corp. (PAAS) Testing Investors’ Patience Right Now


Renaissance Technologies LLC recently announced the acquisition of new stake in Pan American Silver Corp. (NASDAQ:PAAS). The institutional investor has increased its shareholding in the Basic Materials company by 19.68% to 7.59 million shares with purchase of 1.25 million shares. This fresh investment now brings its stake to 3.61% valued currently at $230.75 million. In addition, BlackRock Investment Management (… raised its holdings by 1.31 million to 6.91 million shares. And The Vanguard Group, Inc. has lifted its position by 4.43% or 0.25 million shares – to 5.82 million shares.

With over 3.58 million Pan American Silver Corp. (PAAS) shares trading Friday and a closing price of $37.36 on the day, the dollar volume was approximately $133.82 million. The shares have shown a positive weekly performance of 1.80% and its price on 07/31/20 gained nearly 5.18%. Currently, there are 209.78M common shares owned by the public and among those 206.89M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for PAAS have a consensus price objective of $38.24. The analysts have set the share’s price value over the next 12 months at a high of $46.00 and a low of $28.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Pan American Silver Corp. stock is 2.30 for the next 12 months. The average price target is -6.2% below its last price level and a downside to the estimated low will see the stock lose -33.43% over that period. But an upside of 18.78% will see the stock hit the forecast high price target while mean target price for the stock is $40.00.

The top 3 mutual fund holders in Pan American Silver Corp. are VanEck Vectors – Gold Miners ETF, VanEck Vectors – Junior Gold Mine, and BlackRock Global Funds – World Go. VanEck Vectors – Gold Miners ETF owns 11.49 million shares of the company’s stock, all valued at over $349.05 million. The company sold 15888.0 shares recently to bring their total holdings to about 5.46% of the shares outstanding. VanEck Vectors – Junior Gold Mine sold 8619.0 shares to see its total holdings shrink to 9.21 million shares valued at over $279.74 million and representing 4.37% of the shares outstanding. BlackRock Global Funds – World Go sold -0.96 million shares to bring its total holdings to over 4.06 million shares at a value of $123.5 million. BlackRock Global Funds – World Go now owns shares totaling to 1.93% of the shares outstanding.

Shares of Pan American Silver Corp. (NASDAQ: PAAS) opened at $36.53, up $1.01 from a prior closing price of $35.52. However, the script later closed the day at $37.36, up 5.18%. The company’s stock has a 5-day price change of 1.80% and 71.45% over the past three months. PAAS shares are trading 57.70% year to date (YTD), with the 12-month market performance up to 124.52% higher. It has a 12-month low price of $10.61 and touched a high of $39.33 over the same period. Currently, 3.58 million shares have been traded, compared to an average intraday trading volume of 3.93 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.54%, 23.60%, and 65.38% respectively.

Institutional ownership of Pan American Silver Corp. (NASDAQ: PAAS) shares accounts for 60.90% of the company’s 209.78M shares outstanding. Mutual fund holders own 18.82%, while other institutional holders and individual stakeholders account for 40.83% and — respectively.

It has a market capitalization of $7.59B and a beta (3y monthly) value of 1.42. The stock’s trailing 12-month PE ratio is 244.18, while the earnings-per-share (ttm) stands at $0.15. The company has a PEG of 7.55 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 0.13. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.74% over the week and 5.18% over the month.

Analysts forecast that Pan American Silver Corp. (PAAS) will achieve an EPS of $0.05 for the current quarter, $0.3 for the next quarter and $1.77 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.08 while analysts give the company a high EPS estimate of $0.29. Comparatively, EPS for the current quarter was $0.04 a year ago. Earnings per share for the fiscal year are expected to increase by 718.20%, and 152.62% over the next financial year. EPS should grow at an annualized rate of 32.36% over the next five years, compared to 16.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Pan American Silver Corp. (PAAS) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 4 of the 11 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the PAAS, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on July 23, 2020, with the firm’s price target at . Canaccord Genuity coverage for the Pan American Silver Corp. (PAAS) stock in a research note released on July 21, 2020 offered a Hold rating with a price target of . Canaccord Genuity was of a view on May 20, 2020 that the stock is Buy, while Canaccord Genuity gave the stock Hold rating on May 08, 2020, issuing a price target of $23.50. National Bank Financial on their part issued Sector Perform rating on April 23, 2020.


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