Reassessing The Changing Outlook For Yamana Gold Inc. (AUY)


    Fidelity Management & Research Co. recently announced the acquisition of new stake in Yamana Gold Inc. (NYSE:AUY). The institutional investor has increased its shareholding in the Basic Materials company by 58.71% to 18.36 million shares with purchase of 6.79 million shares. This fresh investment now brings its stake to 1.93% valued currently at $119.53 million. In addition, Connor, Clark & Lunn Investment M. raised its holdings by 1.39 million to 15.35 million shares. And Arrowstreet Capital LP has lifted its position by 18.11% or 2.28 million shares – to 14.86 million shares.

    With over 13.44 million Yamana Gold Inc. (AUY) shares trading Monday and a closing price of $5.92 on the day, the dollar volume was approximately $79.55 million. The shares have shown a negative weekly performance of -6.18% and its price on 08/24/20 lost nearly -1.00%. Currently, there are 951.66M common shares owned by the public and among those 947.50M 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: 15 analysts who have offered their price forecasts for AUY have a consensus price objective of $7.13. The analysts have set the share’s price value over the next 12 months at a high of $8.50 and a low of $4.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Yamana Gold Inc. stock is 2.60 for the next 12 months. The average price target is -51.02% below its last price level and a downside to the estimated low will see the stock lose -31.56% over that period. But an upside of 30.35% will see the stock hit the forecast high price target while mean target price for the stock is $7.44.

    The top 3 mutual fund holders in Yamana Gold Inc. are VanEck Vectors – Gold Miners ETF, VanEck Vectors – Junior Gold Mine, and DFA International Small Cap Value. VanEck Vectors – Gold Miners ETF owns 51.34 million shares of the company’s stock, all valued at over $334.19 million. The company bought an additional 0.16 million shares recently to bring their total holdings to about 5.39% of the shares outstanding. VanEck Vectors – Junior Gold Mine bought 0.57 million shares to see its total holdings expand to 43.4 million shares valued at over $282.52 million and representing 4.56% of the shares outstanding. DFA International Small Cap Value now owns shares totaling to 2.10% of the shares outstanding.

    Shares of Yamana Gold Inc. (NYSE: AUY) opened at $6.00, up $0.02 from a prior closing price of $5.98. However, the script later closed the day at $5.92, down -1.00%. The company’s stock has a 5-day price change of -6.18% and 16.08% over the past three months. AUY shares are trading 49.87% year to date (YTD), with the 12-month market performance up to 63.54% higher. It has a 12-month low price of $2.23 and touched a high of $7.02 over the same period. Currently, 13.44 million shares have been traded, compared to an average intraday trading volume of 18.97 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 -6.40%, 2.73%, and 32.57% respectively.

    Institutional ownership of Yamana Gold Inc. (NYSE: AUY) shares accounts for 56.30% of the company’s 951.66M shares outstanding. Mutual fund holders own 10.06%, while other institutional holders and individual stakeholders account for 44.15% and — respectively.

    It has a market capitalization of $5.63B. The stock’s trailing 12-month PE ratio is 21.61, while the earnings-per-share (ttm) stands at $0.27. The company has a PEG of 0.54. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.00% over the week and 4.35% over the month.

    Analysts forecast that Yamana Gold Inc. (AUY) will achieve an EPS of $0.03 for the current quarter, $0.02 for the next quarter and $0.14 for 2018. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.04. Comparatively, EPS for the current quarter was $0 a year ago. Earnings per share for the fiscal year are expected to increase by 50.00%, and 58.30% over the next financial year. EPS should grow at an annualized rate of 40.04% over the next five years, compared to -27.04% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Yamana Gold Inc. (AUY) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 6 of the 15 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the AUY, a number of firms have released research notes about the stock. Scotiabank stated their Sector Outperform rating for the stock in a research note on April 16, 2020, with the firm’s price target at. RBC Capital Mkts coverage for the Yamana Gold Inc. (AUY) stock in a research note released on December 05, 2019 offered a Sector Perform rating with a price target of. Credit Suisse was of a view on October 14, 2019 that the stock is Outperform, while National Bank Financial gave the stock Outperform rating on June 28, 2019, issuing a price target of. RBC Capital Mkts on their part issued Sector Perform rating on April 26, 2019.


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